Every Massachusetts employer with one or more employees is required by law to carry workers compensation coverage at all times for their employees, but MA law varies by type of business when it comes to businesses owners. This important coverage will not only pay for injured workers to get medical care and partial wage replacement, it will also protect the insured employer from potentially damaging lawsuits. Here is an overview by type of business.
Corporations
All corporations are required to carry workers compensation for their employees. Corporate officers who have at least 25% interest in the Corp. may request to be exempt from their workers compensation policy with a form filed with the Department of Industrial Accidents. Link to form: Here
LLP, LLC, Limited partnership and Sole Proprietors
Members of the business types above are not required to carry workers compensation for members, partners and sole proprietors. They do have the option to include themselves on their policy if they so choose. Whether or not they choose to cover themselves they would need to have a policy in place for any employees of the business.
Independent Contractors
Independent contractors in Massachusetts are not considered employees and are not required to be covered by a workers compensation policy. Although if you have an independent contractor doing work for your business you should take extra effort to make sure they are not improperly classified as an independent contractor. The insurance company may decide that their wages should be covered under your policy if they do not have a policy for themselves, or if they are improperly classified. You can read more about independent contractor law: Here
If you have any questions regarding how to best protect your business with Workers Compensation we would be happy to help you with your MA Insurance, NH Insurance, or VT Insurance needs.