What is workers compensation insurance?
Employees in almost any industry could be injured on the job, and that’s a risk that both employers and employees need to prepare for. In addition to having proper safety equipment and following safety protocols, employers in Massachusetts can also get workers compensation insurance.
Workers compensation insurance is an important insurance that can help protect against workplace injuries and illnesses. It may provide compensation for both medical costs and lost wages if there’s a claim.
What businesses need to be carrying workers comp insurance?
Massachusetts state law normally requires employers across industries to carry workers comp insurance. If your business has at least one employee, it likely needs workers compensation.
For the purposes of workers compensation, employees refers to traditional employees (i.e. usually issued a W2). Independent contractors (i.e. usually issued a 1099) usually don’t necessitate workers compensation, although businesses that hire contractors should discuss any workplace injury exposure they have with an agent who specializes in this coverage.
Failing to carry the insurance when it’s required can result in both liability risk and legal consequences.