Every Massachusetts insurer charges the same base rate, so there is no lower rate to find. You lower the bill through correct job classifications, accurate payroll, and the credits and dividend plans insurers are allowed to offer. Who this is for: Massachusetts contractors and trades who want a lower workers comp bill without touching their employees' coverage.
The short version
- Massachusetts workers comp base rates are approved by the Commissioner of Insurance and used by every insurer. Rates have not changed since a 14.6 percent cut on July 1, 2024.
- Insurers compete on four things: a filed discount below the state rate, a discount for how you run the business, dividend plans where offered, and the state's construction wage credit.
- Two quotes on the same payroll can still land apart. Ask what credits and dividends sit behind each one.
- Correct classifications and job-by-job payroll records lower the bill at any insurer.
- If no insurer will quote you, the state's plan of last resort has to, at the same base rates.
If Massachusetts rates are the same everywhere, what am I shopping for?
Workers comp pays medical bills and lost wages when an employee is hurt at work. Massachusetts requires it from your first employee. No rate takes effect until the Commissioner of Insurance approves it, and insurers do not file their own base rates. What an insurer can do is apply a filed discount below the state rate, add a discount for how you run the business, offer a dividend plan, and use deductible and premium discount programs. That is the whole menu.
| Part of your price | Same at every Massachusetts insurer? | What to ask |
|---|---|---|
| Base rate by class code (the job category your payroll is rated under) | Yes. Set on a filing by the Workers Compensation Rating and Inspection Bureau of Massachusetts (WCRIBMA) and approved by the Commissioner. Unchanged since July 1, 2024. | Nothing. It does not move. |
| Experience mod (a multiplier based on your claims history) | Yes. Calculated by the state rating bureau and applied by every insurer. | Ask for the worksheet and check it for errors. |
| Filed discount below the state rate | No. Each insurer files its own with the Division of Insurance. | What percentage is applied and why. |
| Dividend plan | No. Offered by some insurers, paid after a good year, never guaranteed. | What the plan actually paid last year. |
| Construction wage credit (the Massachusetts Construction Classification Premium Adjustment Program) | Same rules everywhere, but you must apply. | Whether your average hourly wage in eligible classes is at least $30.00. |
| Deductible and premium discount | Deductible credits vary by insurer. Premium discount applies to larger premiums. | Whether a deductible fits your cash flow. |
There are limits on how deep a discount can go. The biggest ones need extra approval from the state, so they are rare and go to the cleanest accounts.
Which levers work at any Massachusetts insurer?
These lower the bill before any credit is applied. What each is worth depends on your trade, payroll, and claims history.
| Lever | Massachusetts rule | Illustrative saving |
|---|---|---|
| Classify office staff correctly | Clerical code 8810 applies only to employees who do office work exclusively, behind structural partitions. Any other duty puts the whole payroll in the highest-rated class. | Depends on the payroll misclassified and the gap between the two class rates |
| Keep payroll by task | Construction payroll can be divided between classes only if your original records show each employee's actual time by task. No estimates. | Keeps low-rated work off your highest rate |
| Check the mod worksheet | The state rating bureau builds it from claims your insurers reported. Errors raise the multiplier for three years and can trigger a state surcharge for employers whose losses run above expected, up to 25 percent. | A lower multiplier lowers every dollar of premium |
| Collect subcontractor certificates | Under Massachusetts law your insurer pays an uninsured sub's injured workers and then pursues the sub. At audit the sub's pay goes on your payroll. If you cannot show what the sub paid its workers, the auditor can charge a percentage of what you paid the sub, so keep the sub's invoices. | The sub's pay, rated in the sub's own trade class |
| Decide on owner coverage | Officers owning at least 25 percent can opt out by filing Form 153 with the Department of Industrial Accidents. Sole proprietors, partners, and LLC members who elect in are priced at $70,000 of payroll. | Your payroll at your class rate |
For each lever in depth, see how to reduce workers comp costs in Massachusetts.
What if I am in the assigned risk pool?
The pool is the state's plan of last resort when no insurer will quote you. The state rating bureau runs it, and it must cover any employer entitled in good faith to coverage. One of a handful of insurers appointed by the state issues the policy at the state base rates. There are no discounts or dividends in the pool, and the surcharge for above-expected losses applies there too. The way out is a clean year or two, correct classifications, and a broker who resubmits your account to the voluntary market at renewal. See how to get workers comp in Massachusetts.
Is the cheapest Massachusetts quote actually cheaper?
Ask three questions. Does it use the same class codes and payroll as the other quotes? Is the discount firm, or a dividend that depends on next year's results? Is the insurer fair at the year-end premium audit (its check of your real payroll)? A quote that is lower today but adds thousands at the audit was not cheaper. For the state cost picture, see how much workers comp costs in Massachusetts.
What this looks like in real life
Illustrative example. It is typical of what we see and is not a promise of how any specific situation would be handled.
The setup: A masonry contractor in Lynn has six employees and about $390,000 in payroll. Two years ago, after a lapse, no insurer would quote him and the state rating bureau placed him in the pool. His premium is about $44,000 with a mod of 1.15.
What went wrong: He assumes the pool is his only option. His estimator, who works from a walled office and never visits sites, is rated as a mason. Two years of clean claims have not been shown to anyone.
What it cost: Illustrative numbers: moving the estimator to the clerical class saves about $3,800. A broker resubmits the account to four voluntary insurers with the clean loss runs. One offers an approved credit and a dividend plan about 11 percent below pool pricing on the corrected payroll, and the bill lands near $34,000.
The fix: The base rates were identical in the pool and in the voluntary market. The $10,000 difference was classification, credits, and someone asking on his behalf.
Frequently asked questions
Q: How can I find cheaper workers comp insurance in Massachusetts?
Shop for the credits, dividend plans, and programs insurers are allowed to offer, because base rates are the same at every Massachusetts insurer. Fix classifications, payroll records, and your claims multiplier first.
Q: Can one Massachusetts insurer really charge less than another for workers comp?
Yes, but not through the rate. Insurers file a discount below the state rate, add a discount for how you run the business, offer dividend plans, and use deductible programs. Two quotes on the same payroll can land apart on those pieces.
Q: What is a dividend plan and can I count on it?
A dividend plan returns part of your premium after the policy year if the insurer's results are good. It is never guaranteed. Ask what the plan actually paid in recent years.
Q: Did Massachusetts workers comp rates change in 2025 or 2026?
No. Rates were cut 14.6 percent on July 1, 2024 and have not changed since. If your bill rose, something in your own account moved.
Q: No insurer would quote me and the state assigned me one. How do I get out?
Build a clean claims record, correct your classifications, and have a broker resubmit your account to voluntary insurers before renewal. The pool offers no credits or dividends, so a voluntary quote is usually lower.
Q: Does every Massachusetts employer have a claims multiplier?
No. Below a premium threshold set by the state rating bureau there is no multiplier at all, and your price is payroll times the base rate. Ask your broker whether yours is one.
How Morrow helps
Morrow is a licensed independent commercial insurance brokerage that works with contractors and trades every day. Finding the approved credits and dividend plans a Massachusetts contractor qualifies for, after correcting classifications and payroll, is how we lower a workers comp bill without touching coverage.
- Free contract review. Send us the contract or bid documents and we mark up the insurance section in plain English, whether or not you buy anything from us.
- Free, instant certificates. Clients issue their own certificates of insurance online in about a minute, any hour, any day, at no charge.
- Markets you cannot reach online. One application, shopped across many insurance companies for general liability, workers comp, auto, umbrella, and pollution coverage.
One more thing. This article is general information and is not legal advice or a statement of coverage. Your contract and your policy wording control in every case. Requirements vary by customer, by state, and by insurance company, so have a licensed advisor review your own contract and your own policy before relying on any of it.
Last updated: Reviewed by the Morrow commercial lines team. Last updated September 2026.