Workers Compensation Requirements for Massachusetts Employers

Under Massachusetts General Laws Chapter 152, almost all employers with one or more employees are required to carry workers compensation insurance. This includes full-time, part-time, and seasonal employees. Even sole proprietors with employees must comply. The only major exception is for sole proprietors and partners with no employees — though they can elect to cover themselves.

Workers compensation covers: • Medical expenses for work-related injuries and illnesses • Lost wages (typically 60% of the employee's average weekly wage) • Permanent disability benefits • Vocational rehabilitation • Death benefits for surviving family members It also protects employers from most lawsuits by injured employees — a critical protection that many business owners overlook.

Operating without workers compensation in Massachusetts is a serious offense. Penalties include: • Fines of up to $1,500 per day for each day of non-compliance • Criminal charges (misdemeanor or felony depending on circumstances) • Personal liability for all medical expenses and lost wages of injured employees • Stop-work orders that shut down your business operations The Massachusetts Department of Industrial Accidents actively investigates non-compliance.

Workers comp premiums are based on three factors: 1. Your payroll — higher payroll means higher premium 2. Employee job classifications — riskier jobs (like roofing) have higher rates than office work 3. Your experience modification rate (EMR) — a multiplier based on your claims history Many businesses overpay because their employees are misclassified. We review all three factors to make sure your policy is accurate and cost-effective.

If an employee is injured on the job: 1. Ensure the employee gets immediate medical attention 2. Report the injury to your workers comp carrier within 24 hours 3. Complete a First Report of Injury form and file it with the DIA within 7 days if the employee misses 5 or more days of work 4. Cooperate fully with the claims investigation 5. Work with your insurer on a return-to-work plan Amara Insurance Group advocates for you through the entire claims process.

As an independent agency, we compare workers comp rates from multiple carriers to find the best coverage at the lowest cost for your specific industry and payroll. We handle the application, make sure your classifications are correct, and help you understand your EMR. Most businesses receive a quote within 24–48 hours.