Why You Need Workers' Compensation Insurance in Massachusetts

Running a business comes with as much opportunity as it does risk. While risk comes in many forms, liability is one of the foremost areas of concern for a business owner. A key to mitigating liability exposure is having proper insurance coverage for your business. One of the essential coverages, especially for Massachusetts business owners, is
offering workers' compensation.

Workers' compensation protects companies from costs and liabilities related to their employees getting sick or injured while on the job. Providing this type of coverage is extremely important for employee acquisition and retention. A study showed that 78% of employees are likelier to stay with a company if they like their benefits.

Workers' compensation is one of those benefits that gives you protection and improves the satisfaction of your employees. Furthermore, in Massachusetts, it's the law. We dive into this more on our workers' compensation insurance page, but here's what you should know about the law.

"Almost all Massachusetts businesses that have employees are required by state law to have workers' compensation insurance. If a limited liability company (LLC), limited liability partnership (LLP), unincorporated business, or sole proprietorship doesn't have employees, the business might not have to purchase a workers' compensation policy.
The business can, however, elect to provide workers' compensation coverage to the business owners."

The penalties for not having workers' compensation insurance in Massachusetts can be severe. The Department of Industrial Accidents, also known as the DIA, Office of Investigations, can and will issue a stop work order (SWO) if they find out you are not carrying this type of insurance. If the DIA does this, here are the penalties you can
potentially face.

• A minimum fine of $100 per day, every day, from when the SWO is issued.
• Criminal charges can be filed with a penalty of up to one year in jail or up to a
  $1,500 fine.
• The uninsured business can face exclusion from public contracts for up to three
  years.

In short, if you own a business in Massachusetts, you need this coverage, which will
benefit you in the long run. Armed with this knowledge, let's look at what you get
in return for carrying workers' compensation insurance.

• You get the peace of mind that comes with being compliant, and you get liability
  coverage to protect your business against financial hardship if one of your
  employees get hurt or sick on the job.
• This coverage will cover your employees medical costs for qualifying injuries or
  illnesses.
• In Massachusetts, your employees will be compensated for their lost wages due to the incident.
• Employees may also be eligible for disability pay based on the injury or illness
  they suffer.

In the simplest of terms, workers' compensation insurance is good for your business, it's good for your employees, and in Massachusetts, it's the law. When you purchase this type of insurance, you can cover your employees (part-time and full-time), business owners, and sometimes even subcontractors.

Working with the team at Charles River Insurance, we can find the right coverage for your business. There is no shortage of workers' compensation-related incidents in the workplace every year, and our team of experts can get you the right coverage to be protected and compliant with Massachusetts state law. Reach out to us to get a free
quote, today!