Massachusetts generally requires employers who have employees to carry workers compensation insurance, but subcontractors fall into a gray area. Sometimes businesses need to provide workers comp insurance coverage for subcontractors, and other times they don’t. If a business has to provide coverage, its policies premiums typically increase -- and sometimes they increase unexpectedly. The easiest way to reduce the likelihood that hiring subcontractors increases your West Springfield, MA business’ workers comp insurance premiums is to only hire subcontractors who have their own insurance coverage.
Most businesses have many interests that must be protected at all costs to prevent failure and financial ruin. One example of such an interest is the wellbeing of workers hired by a business, especially if the workers are classified as employees. In the state of Massachusetts, all employers must have workers compensation insurance. While this may seem like a fairly straightforward rule, many business owners in Longmeadow, MA are unsure whether their independent contractors should be covered by a workers compensation policy.
No matter their size, all businesses need at least one insurance policy to help protect their interests. While the need for an insurance policy itself is universal, different businesses need different types of coverage. For example, not all companies have employees, but those that do would likely benefit from compensation insurance. If you employ individuals to work for your Springfield business, here is some information that will help you determine both your need and eligibility for workers compensation insurance.