Workers’ Compensation Insurance in Massachusetts
Workers’ compensation insurance is a required coverage for most Massachusetts employers and plays a critical role in protecting both employees and businesses when workplace injuries or illnesses occur.
Workers’ compensation insurance is designed to help provide medical benefits and wage replacement to employees injured on the job, while also helping protect employers from certain lawsuits related to workplace injuries.
At Risman Insurance Agencies, we work with Massachusetts businesses across a wide range of industries to help them understand workers’ compensation requirements and review coverage options that align with their operations.
What Is Workers’ Compensation Insurance?
Workers’ compensation insurance generally applies when an employee is injured or becomes ill as a result of their job duties.
Subject to policy terms and Massachusetts law, workers’ compensation coverage may help with:
- Medical expenses related to work-related injuries or illnesses
- A portion of lost wages while an employee is unable to work
- Certain disability or rehabilitation benefits
In exchange, workers’ compensation laws typically limit an employee’s ability to sue their employer for covered workplace injuries.
Who Needs Workers’ Compensation Insurance in Massachusetts?
Most Massachusetts employers are required by law to carry workers’ compensation insurance, even if they have only one employee.
This includes:
- Full-time and part-time employees
- Seasonal and temporary workers
- Many family members who work in the business
Requirements can vary based on business structure and staffing, so it’s important to review obligations carefully.
Why Workers’ Compensation Is More Than a Legal Requirement
While workers’ compensation insurance is mandatory for most employers, it also plays an important role in business stability.
A workplace injury can impact:
- Employee morale and productivity
- Operational continuity
- Financial planning and cash flow
Having appropriate coverage in place helps businesses respond to injuries in a structured, predictable way.
Key Factors That Affect Workers’ Compensation Premiums
Workers’ compensation costs are influenced by several factors beyond payroll alone.
Employee Classification
Premiums are based on job classifications that reflect the risk associated with specific duties. Accurate classification is essential to ensure fair pricing and avoid audit issues.
Payroll Reporting & Premium Audits
Workers’ compensation policies are subject to annual premium audits. Maintaining accurate payroll records and job descriptions helps ensure audits reflect actual operations.
Experience Modification Factor (Experience Mod)
An experience modification factor compares your claims history to similar businesses in your industry. A higher or lower mod can increase or decrease premiums.
Reviewing claims data for accuracy is an important part of managing workers’ compensation costs.
Loss Control & Workplace Safety
Workplace safety practices and injury prevention efforts can help reduce claims frequency and severity over time.
While insurance does not replace safety programs, coverage discussions often include reviewing risk management practices relevant to your industry.
Workers’ Compensation and Other Business Insurance
Workers’ compensation insurance works alongside other business coverages, including:
Each policy addresses different types of risk and coordinating them helps reduce gaps.
Why Businesses Work with Risman Insurance Agencies
Experience with Massachusetts employers
We understand Massachusetts workers’ compensation requirements and how they apply across different industries and business sizes.
Independent agency approach
As an independent agency, we work with multiple insurance carriers and help businesses compare workers’ compensation options based on classification, payroll, and claims history.
Ongoing support year after year
From policy reviews to audit questions and coverage adjustments as staffing changes, our team supports employers throughout the policy term — not just at renewal.
Request a Workers’ Compensation Insurance Review
If you employ workers in Massachusetts, it may be worth reviewing your current workers’ compensation policy to ensure it reflects your operations accurately.
Call: 781-396-2116
Request: Contact us online to get started
Insurance coverage cannot be added, deleted, or changed until confirmed in writing from our office. Coverage availability and eligibility vary by carrier and are subject to the terms and conditions of the policy.
