Do I need workers compensation insurance?

Workers Compensation Insurance Requirements in Massachusetts

In Massachusetts, businesses with employees are generally required to carry workers compensation insurance. This insurance covers medical expenses and lost wages if an employee is injured or becomes ill due to their job.

When Workers Compensation Insurance Is Required

• All employers with one or more employees must have workers compensation insurance, including full-time, part-time, seasonal, and temporary workers.
• Independent contractors typically are not covered unless they meet specific criteria indicating employee status.
• Construction businesses have the same requirements and must ensure coverage for all workers on site.

Operational Considerations

• Business registration: You must register your business and obtain an Employer Identification Number (EIN) before applying for insurance.
• Insurance providers: You can purchase workers compensation insurance through private insurers or the Massachusetts Workers’ Compensation Assigned Risk Pool if you cannot find coverage in the open market.
• Compliance and recordkeeping: Maintain accurate payroll and employee records to ensure proper coverage and premium calculations.
• Reporting requirements: Report workplace injuries promptly to your insurer and the Massachusetts Department of Industrial Accidents as required.
• Payroll impact: Premiums are typically based on payroll size and job classifications, so accurate payroll tracking is essential.

As of 2026, ensure you verify any updates to Massachusetts workers compensation regulations or insurance requirements before starting your business operations.