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Workers’ Compensation Insurance

It’s Time to Find Affordable Insurance Solutions




    How workers’ compensation insurance benefits both your employees and your company

    Mandatory workers’ compensation insurance in Massachusetts can be a big expense for business owners, especially if you run a small- to mid-sized company. But, while you might think of workers’ compensation insurance as simply another state requirement that you are forced to put some of your budget towards, the team at Anderson, Bagley & Mayo (ABM) encourages you to think of this coverage as much more than another business expenditure.

    We’d like you to consider a workers’ compensation insurance policy a true safeguard for both you and your employees, because, in the event of a workplace injury or illness to one of your employees, workers’ compensation insurance will:

    • Pay for the injured employee’s wage replacement and medical benefits while they are recovering from an injury, or longer if they have suffered permanent physical damage
    • Pay death benefits to the dependents of employees who are killed in work-related accidents or illnesses
    • Shield you from costly lawsuits and paying for your employees’ medical expenses out of your own pocket and/or your company’s resources

    Whether you employ full-time workers, part-time staff, or both, have domestic employees, or only work with your family members, workers’ compensation insurance is coverage that is often a requirement. And, there are hefty penalties if you are caught without the appropriate workers’ compensation insurance for your business. In fact, the Department of Industrial Accidents (DIA), which oversees the Massachusetts workers’ compensation system, can close you down immediately, fine you a minimum $100 per day, and even press criminal charges if one or more of your employees is not covered by a workers’ comp policy.

    However, similar to other Massachusetts mandatory laws, like “use a seat belt” and “wear a motorcycle helmet”, workers’ compensation laws have truly been designed to protect us. It is critically important to have this insurance in place in case any employee, including you, suffers a job-related injury or illness.

    Employees are the heartbeat of your company, let ABM help you protect them

    As your local insurance partner, ABM is here to do much more than just help you select the right workers’ compensation coverage. We can assist you with classifying your employees and listing your payroll correctly, making sure your safety program complies with current OSHA laws and regulations, and, most important, holding down rising workers’ compensation rates.

    Through our strong relationships with many of the highest-rated insurance carriers, we are uniquely qualified – and committed – to finding you the best workers’ compensation insurance solutions to safeguard your employees and your business, while also saving you valuable time and money. Our experienced team can also help you understand and fulfill a number of the other responsibilities you have as an employer under the Massachusetts workers’ compensation law, including your obligation to:

    • Post notices or posters in convenient locations frequented by employees during working hours advising them of their legal rights
    • Provide claims forms to injured employees within 24 hours of notifying you of an on-the-job injury or work-related illness
    • Supply written information about the employee’s rights under the workers’ comp system
    • Give details about available benefits and how to file a claim
    • Provide the name of your company’s workers’ compensation carrier as well as who is responsible for adjusting claims
    • Make sure all new hires are given this same workers’ compensation information

    As an employer for over 100 years, ABM knows that it is a huge responsibility to try to keep all your employees safe, whether they are working in your building or conducting business on the road. We will be glad to review your current workers’ compensation policy, identify any potential gaps or issues, offer affordable solutions, and provide you with the highest level of service should you ever face a workers’ compensation claim by an employee.

    For more information about how we can help you with your workers’ compensation insurance needs, please visit us at any one of our three convenient Massachusetts offices. Or, contact us today to speak one-on-one with an ABM team member.

    Some important information about workers’ compensation insurance

    Workers’ comp laws apply to almost every company, no matter the number of hours their employees work or the number of employees they have. But, workers’ compensation insurance really isn’t as clear-cut as it sounds. Regulations change, rates fluctuate, and workplace safety guidelines constantly evolve. This makes it challenging for employers like you to stay up to date with the appropriate coverage for your unique situation, especially because your own business is always changing and growing as well. That’s why it’s best to work with a knowledgeable, local insurance agent, like ABM, who thoroughly understands the ins-and-outs of workers’ comp insurance and can provide you with all the information you need for your specific workplace environment. While speaking to you in person or over the phone is the most effective way for us to guide you through this complex insurance process, we can give you a head start by providing some answers to common workers’ compensation insurance questions here:

    Are there any exceptions to the workers’ compensation insurance requirement?

    It is possible that you are one of the few employers not required to carry this insurance for yourself – or who can file for an exemption – if you are a:

    • Member of a limited liability company (LLC)
    • Partner of a limited liability partnership (LLP)
    • Corporate officer who owns at least 25% interest in the corporation
    • Sole proprietor of an unincorporated business
    However, just because you may be exempt, any employees of your company must still be covered. Plus, even if you meet one of these criteria, you may not be entirely off the hook. For example, if you are a sole proprietor of an electrical business, your clients may require you to have your own workers’ comp coverage as a way to limit their liability. Want ABM’s professional opinion? Even if you aren’t required to carry a workers’ comp policy, talk to your insurance professional about the pros and cons of purchasing this coverage for yourself. One of the major benefits of having workers’ compensation insurance is that it can help you pay for your own medical expenses and replacement wages should you get injured on a job.

    What factors into workers’ compensation rates?

    Below are some of the key factors that can impact your workers’ compensation premium:

    • Your business size and location
    • Risk factors related to your individual business and your industry
    • Proper classification of your employees
    • Accurate reporting of the size of your staff and your payroll
    • Your claims history
    • Your Experience Modification Factor, which is set by comparing your safety record to other companies in Massachusetts and your industry
    • Having a safety committee in place that meets monthly
    • Your company’s ability to detect workers’ compensation fraud
    • Implementing measurable initiatives to provide the safest workplace possible for your employees
    Out of all your business insurance policy premiums, your workers’ compensation premium may actually be the one that you have the most control over. If the factors above are properly managed by you and your insurance professional, then you can often earn a deduction towards your workers’ comp premium. On the other hand, if they are not appropriately handled, you could face penalties and rate increases. That’s why it’s important to partner with an insurance agent, such as ABM, who not only has in-depth knowledge of the state’s workers’compensation requirements and strong relationships with the top insurance providers, but who will also always look out for your best interests.

    What is covered by workers’ compensation, and what is not?

    Workers’ comp will only cover injuries or illnesses that are related to an employee’s job. But, that doesn’t mean that the incident has to happen at the workplace to be covered. For example, if your employee is traveling on business, running an office errand, or attending a business-related social function when an accident occurs, then this would be considered an injury arising out of employment and/or occurring during the course of employment. Specifically, workers’ comp may cover the following injuries and illnesses:

    • Sudden accidents, like falling off scaffolding at a construction site or slipping on a wet surface in a restaurant kitchen
    • Cumulative trauma, such as repetitive strain or a stress injury that develops over time from performing the same physical tasks over and over
    • Occupational diseases that result from workplace conditions, such as lung disease from exposure to toxic chemicals or digestive problems related to on-the-job stress
    It is also important that you and your employees understand the situations that generally are not covered by workers’ compensation insurance, including injuries that are:

    • Caused by the employee’s intoxication or use of illegal drugs
    • Self-inflicted
    • Resulting from a fight that the injured employee started
    • Sustained while the employee is in the act of a felony, a serious crime or violating a company policy
    There are also special rules in Massachusetts for workers’ comp claims that are filed after an employee is fired or laid off. Please contact your ABM insurance professional if you have a specific workers’ comp situation you want to discuss or any other questions about this type of insurance.

    It’s your life, let ABM protect it with the right coverage at the right price