If you have even one employee in Massachusetts, yes, you need workers compensation, and you need it before that person's first shift. Massachusetts is one of the strictest states in the country here: there is no minimum number of employees and no exception for part-time or seasonal help. The main people who do not have to be covered are certain owners, and only in specific ways we explain below.
Who this is for: Any Massachusetts owner trying to answer one question, do I need workers comp, without wading through statute language. Workers comp (often shortened to workers comp or comp) is the insurance that pays an employee's medical bills and part of their lost wages when they get hurt on the job, and it protects you from being sued over that injury.
The short version
- The rule: Massachusetts law (M.G.L. c. 152) requires every employer to carry workers comp for all employees.
- The threshold: one employee. There is no headcount minimum and no part-time or seasonal exception.
- The main exception: owners. Sole proprietors, partners, and LLC members can leave themselves out; corporate officers with at least 25 percent ownership can opt out with a form.
- The penalty: a stop work order, fines starting at 100 dollars a day, criminal charges, and personal lawsuits from injured workers.
- What we do: Morrow shops the Massachusetts market and helps you get covered quickly, often the same day.
Who has to be covered in Massachusetts?
Massachusetts starts from a simple place: almost everyone who works for you is an employee who must be covered. Here is how the common cases break down.
| Type of worker | Must be covered? | Notes |
|---|---|---|
| Full-time employee | Yes | From the first one, no waiting period |
| Part-time or seasonal employee | Yes | No hours minimum; one part-timer triggers the rule |
| Family member who works in the business | Yes | Massachusetts has no family exemption |
| Sole proprietor, partner, or LLC member (the owner) | Not required for themselves | May choose to be included |
| Corporate officer | Yes, by default | Can opt out if they own at least 25 percent, using a state form |
| Household worker (nanny, housekeeper) | Yes, if 16 or more hours a week | Under 16 hours is exempt |
| 1099 contractor | Usually yes | Only truly independent businesses pass the state test |
Can I leave myself out as the owner?
Often, yes, and this is where the setup of your business matters. Massachusetts treats owners differently depending on the business type:
- Sole proprietors, partners, and LLC members are not their own employees, so you do not have to cover yourself. You can opt in if you want the protection. See sole proprietors, partnerships, and LLCs.
- Corporate officers are covered by default. If you own at least 25 percent of the company, you can leave yourself out by filing a state exemption form. See corporations.
None of these exceptions change the main rule: the second you have a non-owner employee, that person must be covered.
What if I do not carry it?
Massachusetts enforces this hard through the Department of Industrial Accidents. If you are caught without coverage you can face:
| Consequence | What it means |
|---|---|
| Stop work order | The state orders you to shut down until you get covered and pay the fine |
| Daily fine | At least 100 dollars a day, including weekends and holidays; 250 dollars a day if you appeal and are found uncovered |
| Criminal charges | Up to 1,500 dollars and up to one year in jail |
| Public contract ban | Barred from state and city-funded work for three years |
| Personal lawsuits | An injured worker can sue you directly, and you lose your normal legal defenses |
The full breakdown is on our Massachusetts penalties guide.
A quick Massachusetts example
Illustrative, not a quote. Dave opens a two-person auto repair shop in Lowell as an LLC. He does not have to cover himself, but his one mechanic must be covered from the first day. Dave buys a workers comp policy for about 1,800 dollars a year. Three months in, the mechanic burns his hand on a hot manifold and needs stitches and a week off. Workers comp pays the ER bill and part of the lost wages, and Dave pays nothing on the claim. If Dave had skipped coverage to save that 1,800 dollars, he would have owed the medical bills himself and faced a stop work order that closed the shop.
Real questions Massachusetts owners ask
I'm a business owner in Massachusetts with one part-time employee. Do I really need workers comp?
Yes. Massachusetts requires coverage as soon as you have one employee, and it does not matter that they are part-time or seasonal. There is no minimum number of hours or workers before the rule kicks in.
Do I have to cover myself as the owner?
It depends on how your business is set up. Sole proprietors, partners, and LLC members are not required to cover themselves. Corporate officers are covered by default, but an officer who owns at least 25 percent of the company can opt out using a state form.
Are my family members exempt?
No. Massachusetts does not have a family exemption. If your spouse, son, or daughter works in the business as an employee, they must be covered like anyone else.
Can I just pay everyone as a 1099 contractor and skip workers comp?
Almost never in Massachusetts. The state uses a strict three-part test, and most people you pay are treated as employees unless they truly run their own independent business. Calling someone a contractor does not make them one, and getting it wrong is expensive.
What does workers comp cost for a small Massachusetts business?
For low-risk office work it can be a few hundred dollars a year. For hands-on trades it runs into the thousands. Price is based on your payroll, the type of work, and your claims history, not your revenue.
What happens if I do not have it?
The state can issue a stop work order that closes your business, fine you at least 100 dollars a day, and bring criminal charges of up to 1,500 dollars and up to a year in jail. You can also be sued directly by an injured worker, and you lose your usual legal defenses.
Where do I buy it in Massachusetts?
From private insurance carriers, usually through an independent agent who can compare several. Massachusetts has no state fund. If no carrier will take you, there is a state backup pool that must offer you coverage.
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.
- Business insurance in Massachusetts (start here)
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need MA coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost in Massachusetts?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Hiring your first employee: what changes
- What workers comp does not cover
- Workers comp for auto repair shops
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.