WORKERS’ COMPENSATION INSURANCE
While there is some grey area around who really needs this critical insurance coverage, Chisholm Insurance is here to set the record straight. The Massachusetts law specifically states that all business owners are required to carry adequate workers’ compensation insurance for every employee and themselves if they are considered an employee of their company. This requirement pertains to all employees regardless of how many hours they work, with the exception of domestic service staff, members of a limited liability company (LLC), partners of a limited liability partnership (LLP) and sole proprietors of an unincorporated business. Domestic employees must work at least 16 hours a week in order to receive a workers’ comp benefit.
While this coverage is a state requirement and one that can result in hefty fines when misinterpreted, a workers’ compensation policy is much more than that. This essential protection addresses three fundamental things for business owners:
- Ensures injured workers get the medical care and attention they need,
regardless of who was at fault for the accident
- Provides financial compensation for any and all lost wages while they are
unable to work
- Protects employers from potential lawsuits by injured employees
Death benefit to an employee’s beneficiary
Fact or Fiction? If you hire independent contractors, you don’t need a workers’ compensation policy.
This is a common misconception that we often debunk for our business insurance clients. Technically, the state mandate does not require you to purchase a policy if you only hire third-party contractors, however, if you fail to ensure that your business associates have sufficient workers’ comp coverage of their own, you are opening yourself and your business up to substantial risk. Therefore, instead of relying on someone else’s policy to take effect, we always recommend that our commercial clients invest in a policy of their own to safeguard you in the event a contractor is injured.
If you are looking for a new and reliable business insurance partner to align yourself with, need help understanding your company’s workers’ comp insurance requirements, or are interested in learning more about how to access cost-effective business insurance, our team of experienced commercial insurance professionals is here to support you.
To schedule your complimentary policy review, or to learn more about our local and independent agency, call us today at 508-358-6111 or stop by our convenient Wayland location.