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Massachusetts workers' compensation insurance: Your guide to requirements and getting a policy
If you’re a Massachusetts employer looking to protect both your business and your team, you’re in the right place. At Beyond, we provide the essential information you need to understand how workers’ compensation works and how to stay compliant.
Workers’ compensation insurance can benefit both employees and employers. For employees, it helps cover medical expenses or replace a portion of lost wages if they are injured or become ill while working and need time to recover. For employers, having coverage through a policy often protects against litigation – meaning employees typically cannot sue for work-related injuries or illnesses when proper coverage is in place.
In Massachusetts, virtually all businesses are required to carry workers’ compensation insurance for their employees. Employers themselves must also be covered by the policy if they qualify as employees.
This requirement applies regardless of:
How many hours an employee works: Part-time and full-time employees must be covered.
Company size: Even a single employee makes coverage mandatory.
If you hire independent contractors, you are generally not required to provide coverage—provided they are truly independent. That means they set their own hours and are not under your direct supervision.
Yes, a few exceptions to the workers’ comp mandate in Massachusetts include:
Domestic workers employed fewer than 16 hours per week.
Real estate or consumer goods salespeople working on commission or a buy/sell basis (not in a retail setting), with a written contract stating they are not employees under federal tax law.
Taxi drivers leasing their vehicles on a fee basis, not tied to fare collection, and classified as non-employees under tax law.
Individuals engaged in interstate or foreign commerce covered under federal compensation laws.
You can find these exceptions listed in Section 1, Paragraph 4 of the Massachusetts Workers’ Compensation Law.
Employers are required to inform employees of the name of their workers’ compensation carrier by displaying a Notice to Employees poster in a visible location at the worksite.
Posters must be available in all applicable languages. The Department of Industrial Accidents (DIA) provides downloadable posters in multiple languages, and your insurer may also offer them. Failure to display this notice may result in a $100 fine.
Corporate officers with at least a 25% ownership stake in the company may request an exemption from coverage. However, all other employees must still be covered under the policy.
Business owners can obtain workers’ compensation insurance through private carriers and brokers. If coverage is denied by two or more insurers, employers may apply through the Workers’ Compensation Rating and Inspection Bureau, which manages the assigned risk pool.
Qualified employers may also apply for a self-insurance license if they meet certain criteria:
A minimum of 300 employees
An annual standard premium of at least $750,000
Interested employers should contact the DIA’s Office of Insurance to learn more about the self-insurance process.
According to the Beyond Employer’s Guide to Workers’ Compensation in Massachusetts, failing to carry coverage can lead to severe consequences, including:
A stop-work order (SWO) issued by the DIA’s Office of Investigations.
Fines of up to $100/day (including weekends and holidays) until proof of insurance is submitted and all penalties are paid.
Appealing a SWO increases the fine to $250/day, but allows continued operation until the appeal is resolved.
Criminal charges, with penalties of up to 1 year in jail and/or a $1,500 fine.
A 3-year ban on bidding for public contracts.
Having workers’ compensation insurance isn’t just a legal requirement—it’s also a practical safeguard. It gives employees confidence that they’ll be supported if an injury or illness happens on the job. For employers, it provides peace of mind and protects against costly legal risks.
If you have any questions or need guidance on getting started with coverage, the Beyond team is here to help.
