Workers CompENSATON Insurance

Massachusetts Workers Compensation Insurance

Your employees are your most valuable asset. Without them, your business wouldn’t be able to function. If an employee gets injured on the job, it can disrupt your operations, jeopardize your profits, and lower company morale. To protect your company and employees, as well as adhere with Massachusetts law, you need workers compensation insurance.

Workers compensation insurance has been available throughout the United States since 1949. This important coverage protects both employees and business owners when an injury occurs on the job. By creating a no-fault situation, employees can get the medical and salary benefits they need to recover, while employers can better avoid being sued. Most states, including Massachusetts, require companies with employees to purchase this important coverage.

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Massachusetts Legal Requirements

Workers comp is required coverage in MA for all employers. Employees must be covered regardless of the number of hours worked, except in the field of domestic service which has a 16 hour/week minimum before coverage must be obtained. Employers are also required to cover themselves if they are employees of the company. Some corporate officers may choose to be exempt from this.

Employers must also post a notice to employees in a visible area of a common office space. This must include the name of the insurer providing  compensation coverage. Failure to obtain appropriate coverage or post the information can incur a fine.

Workers Comp Insurance Benefits

This insurance provides important benefits to the employer and employee if an injury happens in the workplace. When an injury or illness occurs and is determined to be work-related, workers comp will help pay reasonable medical expenses to that employee. They will also be paid a percentage of their salary, allowing them the freedom to not work during their recovery. This benefit also helps you as the employer to free up funds to hire a temporary replacement. In some cases, vocational rehabilitation costs will also be paid.

When a workers comp claim is filed, it makes the employee ineligible to file a lawsuit in regards to the injury, unless it was caused by willful negligence. This benefit should clear the employer of legal liability for the injury.

Workers Compensation Insurance Audit

Your premiums are based on a number of factors. A risk category will be assigned for each employee based on their job function. Together with their salary, a final cost will be determined. High-risk workers such as construction workers will incur a higher premium than lower-risk secretarial employees, for example.

Each year, an insurance audit is conducted. At this time, the previous year’s payroll, employment, and accident data will be reviewed. Any errors will be corrected, and you may be issued a refund or be required to pay more. This audit process helps ensure that you are only paying for the insurance you need year to year.

When a workplace injury occurs, you may lose your valuable employee temporarily, causing a loss of productivity and money. Workers compensation insurance helps provide the money your employee needs to pay medical and other expenses, while relieving your company of the financial and legal burden. All employers in Massachusetts must have this important coverage to protect their employees.

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