I Own a Corporation in Massachusetts: Do I Need Workers Comp?

If you run a corporation in Massachusetts, yes, you almost certainly need workers comp. The state treats corporate officers as employees, so you are covered by default, and any other staff must be covered from their first day. The one bit of relief: an officer or director who owns at least 25 percent of the company can choose to leave themselves out by filing a state form.

Who this is for: Owners and officers of a Massachusetts corporation, whether taxed as a C-corp or an S-corp, who want to know who has to be covered and how the owner opt-out works.

The short version

Officers are employees in Massachusetts and are covered by default.
The opt-out: an officer or director who owns at least 25 percent can file a state exemption form to leave themselves out.
S-corp or C-corp: no difference. The rule is the same for both.
Other staff: every non-officer employee must be covered, no exceptions.
Opting out has a cost: your own on-the-job injuries would not be covered.

Who is covered in a Massachusetts corporation?

Role	Covered by default?	Can they opt out?
Officer or director owning 25 percent or more	Yes	Yes, by filing the state exemption form
Officer owning less than 25 percent	Yes	No
Regular employee or manager	Yes	No
Family member on payroll	Yes	No family exemption in Massachusetts

How the officer opt-out actually works

Massachusetts does not let you opt out with a phone call. A qualifying officer (someone who owns at least 25 percent of the company's shares) signs the state's Affidavit of Exemption for Certain Corporate Officers or Directors, filed through the Department of Industrial Accidents, and gives a copy to the insurance carrier, usually renewed each year. One form can list several qualifying officers. The key limits: you must hit the 25 percent ownership bar, and the exemption only ever applies to officers, never to your regular staff.

Should you opt out?

Leaving yourself out lowers the premium, because your pay comes off the payroll the price is based on. But if you are excluded and get hurt on the job, the policy pays you nothing. Owners who do physical or field work often stay in the policy on purpose. Owners who sit at a desk and carry their own health coverage more often opt out. There is no wrong answer, only a trade-off between cost and your own protection.

A quick Massachusetts example

Illustrative, not a quote. A Boston marketing agency is set up as an S-corp with two owner-officers who each hold 50 percent, plus four employees. The four employees must be covered, full stop. The two owners each clear the 25 percent bar, so they file the state exemption form and leave themselves out to hold down the premium, since their work is at a desk and both have their own health insurance. Their policy runs a few thousand dollars a year, covering the four staff. When a new hire tweaks her shoulder moving equipment for a shoot, workers comp handles it. Trade detail is on our workers comp for consultants and agencies page.

Real questions Massachusetts owners ask

I own a corporation in Massachusetts. Do I need workers comp?

Yes, in almost every case. Corporate officers are treated as employees in Massachusetts and are covered by default, and any other employees must be covered too. The one relief is that an officer who owns at least 25 percent of the company can opt out.

Does it matter if I'm an S-corp or a C-corp?

No. Massachusetts treats S-corporations and C-corporations the same way for workers comp. The tax election does not change the rule; both are corporations whose officers are covered by default and can only opt out at 25 percent ownership.

How does an officer opt out of coverage?

An officer or director who owns at least 25 percent of the company's stock files a state form, the Department of Industrial Accidents Affidavit of Exemption for Certain Corporate Officers or Directors, and gives a copy to the insurer. Officers who own less than 25 percent cannot opt out.

I own 100 percent of my corporation and have no other staff. Do I still need a policy?

If you are the only person and you file the officer exemption, you may not be required to carry a policy for yourself. Many single-owner corporations still buy one because clients require proof of coverage and because it covers the owner's own injuries.

Can all of my officers opt out?

Only those who each own at least 25 percent. The exemption form is signed by each qualifying officer. Any employee who is not a qualifying officer, including lower-level managers and staff, must still be covered.

If I opt out, am I giving anything up?

Yes. If you exclude yourself and later get hurt on the job, workers comp will not pay your medical bills or lost wages. Some owners keep themselves in the policy for exactly that reason.

What if I forget to file the exemption?

Then you are covered by default and your pay is part of the premium calculation. There is no penalty for being included; the form simply lets qualifying owners reduce cost by leaving themselves out.

Why Massachusetts owners choose Morrow

We shop the whole Massachusetts market for you. Massachusetts has no state-run insurer, so coverage comes from private carriers, or, if no carrier will take you, from the state's backup option (officially the Massachusetts Workers' Compensation Assigned Risk Pool, run through WCRIBMA, the licensed bureau that administers that pool). We check both so you are not stuck with the first price you are handed.
We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.

Related Massachusetts guides

Every Massachusetts business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.

This guide is general information, not legal advice. Massachusetts rules and penalty amounts can change, so verify current requirements with the Massachusetts Department of Industrial Accidents or a licensed advisor before you rely on them. Last updated: July 2026.