Workers compensation insurance isn’t an option; it’s the law. If you have even one employee in Massachusetts, you are required by law to carry workers compensation insurance to cover medical expenses, permanent disability, and a portion of an injured employee’s wages if he or she is injured on the job. If the employee should die as the result of a work-related injury, workers compensation insurance also includes a death benefit paid to the designated beneficiary.
Keep in mind; this form of insurance not only protects your employees. It also protects your company against civil lawsuits relating to injuries on the job.
Depending on the size of your workforce and your industry, workers compensation premiums vary widely. They are determined based upon several key factors:
Employee classification (Each classification is designated to pay a certain amount of premium per block of payroll. The formula is simple: Higher risk=higher premium.)
Experience modification factor: This is a calculation applied to policies with higher premiums in which an employer is compared with other employers within the same classification based on frequency of accidents and severity of injuries. More accidents=higher rating=higher premiums.
It’s critical for every company to work with an insurance professional experienced in the complexities of workers compensation insurance. The wrong employee classifications or miscalculation of the experience modification can result in higher premiums. The professionals at Cushman Insurance Group have a depth of experience in workers comp in a broad spectrum of industries. They can also guide you in the development of safety programs to help reduce injuries and losses.
Make sure you’re protecting your employees, your company, and your budget with the right Workers Compensation protection. Contact one of the local commercial insurance professionals at a Cushman Insurance Group affiliated agency: Cushman Insurance in Brockton, Halifax and Lakeville; Ora Andrews Insurance in Norton and South Attleboro; and T. Robert Sullivan Insurance.