Can your business help your employees if something goes wrong?
Almost all employers are required to have a workers' compensation policy in MA. There are exceptions for some professions, including taxicab drivers, door-to-door salespeople, real estate agents, seamen, professional athletes, and part-time domestic workers with less than 16 hours per week for any employer. General laws and provisions are subject to change but can be referenced in the General Laws of MA Chapter 152, section 1(4). Members and Partners of an LLC, LLP, partnership, or sole proprietor are not required to purchase workers' compensation insurance for themselves but can opt to have coverage if desired.
Workers' Compensation insurance provides medical benefits, wages, and a death benefit if an employee is injured, gets sick, or dies while working. One could consider this important insurance product a combination of health, disability, and life insurance, though business owners and key employees should have a separate insurance policy for each of these concerns as well. Otherwise, corporate Officers who own at least 25% interest in a corporation may also exempt themselves from Workers' Compensation Insurance.
Owner-Officers must sign an affidavit Form-153 requesting exemption, and file the form with the DIA's office. Boynton Insurance Group has workers' compensation specialists who can discuss with you your business insurance concerns, help you determine how to best protect your workers' compensation risk, and assist in filing for an exemption or 'opt-in' for coverage.
Does this apply to hired contractors?
The state of MA does not consider Independent Contractors to be 'employees', and therefore, such contractors are not required to have workers' compensation for themselves. However, the state does have a strict definition of an independent contractor. This type of worker must fit the following three classifications, 1) the contractor must not be controlled or directed by the hiring person, 2) the contractor must perform his/her trade on a customary and professional basis, and 3) the contractor's service must not be the hiring person's usual course of business.
Otherwise, corporate Officers who own at least 25% interest in a corporation may also exempt themselves from Workers' Compensation Insurance. Owner-Officers must sign an affidavit Form-153 requesting exemption, and file the form with the DIA's office. Boynton Insurance Group has workers' compensation specialists who can discuss with you your business insurance concerns, help you determine how to best protect your workers' compensation risk, and assist in filing for an exemption or 'opt-in' for coverage.
What exactly does Workers' Compensation Insurance do?
Workers' Compensation Insurance provides wages and medical benefits to employees who are injured while working. The rules, regulations, and provisions of Workers' Compensation vary from state to state. Boynton Insurance Group, a Massachusetts-based agency, will address provisions specific to Massachusetts.
Workers' Compensation not only provides medical benefits and wages to employees who are injured or contract disease while working; this important and legally required insurance also protects employers from severe and potentially bankrupting lawsuits. Some businesses are statistically more exposed to employee-related injury and illness, and these industries will notice that this policy is among one of their largest insurance expenses. Even though the rates are mostly determined by the state of MA, our agency has access to companies that specialize in your industry and can provide special pricing up to 30% less than your current premium.
Our agents and representative carriers can work with you and your workforce to provide education about workplace safety and emergency response. If workplace injuries and illnesses are a big concern to you as an employer, our agency will work with you and your employees to help reduce the frequency of incidents, build a better workplace environment, and trim down your premium.
