What is Workers Comp Insurance?
Workers comp insurance helps protect businesses against covered claims that are filed by employees who have work-related injuries and illnesses. A policy will typically cover both expenses for medical services and lost wages, as long as they’re directly related to the injury or illness (exact coverages can vary from one policy to another).
What Businesses in Massachusetts Need Workers Compensation Insurance?
Per state law, almost all businesses in Massachusetts that have employees must carry workers compensation insurance. Employees are generally workers who receive a W2 at the end of the year for filing taxes (there may be exceptions to this guideline).
Limited liability companies (LLCs), limited liability partnerships (LLPs), unincorporated businesses, and sole proprietorships that don’t have employees may not be legally required to have workers comp insurance. These companies, partnerships, businesses and proprietorships should still consider purchasing coverage for the business’ owners, though.
Who Does Workers Comp Insurance Cover?
Workers comp insurance typically covers all of the employees that a business has, regardless of their position or how many hours they work. A janitor who works part time is usually covered just as much as a mid-level manager who spends more than 50 hours a week at the office.
As mentioned, a workers comp policy might also cover a business’ partners or owners. This depends on the partners or owners role in day-to-day operations, and the terms of the policy’s business.