If your Massachusetts LLC has employees, yes, you need workers comp, and you need it from the first person you hire. The good news for owners: as an LLC member you are not required to cover yourself, so a single-member LLC with no employees generally does not need a policy at all. The rule turns entirely on whether you have workers who are not members.
Who this is for: Owners of a Massachusetts LLC (limited liability company), single-member or multi-member, trying to figure out whether the state requires workers comp for them, their members, or their staff.
The short version
- Employees: any non-member employee must be covered from day one, full-time or part-time.
- You, the member: not required to cover yourself; you can opt in if you want your own injuries covered.
- No employees, just members: generally no policy required, though clients often ask for one.
- Taxed as an S-corp or C-corp? That does not change the owner rule, but it can affect how your pay is priced, so tell your agent.
- 1099 help: Massachusetts rarely lets you treat workers as contractors, so do not assume they are exempt.
Who must be covered when you run an LLC?
| Who | Covered? | Notes |
|---|---|---|
| LLC member (owner) | Not required | May elect to be included |
| Employee who is not a member | Yes | From the first hire, part-time included |
| Family member on payroll | Yes | No family exemption in Massachusetts |
| 1099 subcontractor | Usually yes | Only a truly independent business passes the state test |
Should you add yourself to the policy?
You do not have to, but including yourself means your own medical bills and lost wages are covered if you get hurt working. The trade-off is cost: when you opt in, your pay is added to the payroll your premium is based on. For an owner doing physical work with no health coverage of their own, opting in is often worth it. For a desk-bound owner with good health insurance, many skip it. If you also want the protection that covers you when an injured employee sues you directly, read workers comp vs employers liability.
The S-corp tax election
Plenty of Massachusetts LLCs elect to be taxed as an S-corp to save on self-employment tax. That is a tax choice, and it does not turn your LLC into a corporation or change the basic rule: as an LLC member you still do not have to cover yourself, and you cannot use the corporate officer exemption form, because an LLC has no stock. What the election can change is how you are paid. If it means you take a W-2 paycheck, a carrier may treat that pay differently when it figures your premium, so tell your agent you made the election and your policy gets set up right. If you actually run a corporation rather than an LLC, see our Massachusetts corporation guide.
A quick Massachusetts example
Illustrative, not a quote. Priya runs a two-member cleaning LLC in Somerville. The two members do not have to cover themselves, but the day they hire their first part-time cleaner, that cleaner must be covered. They buy a workers comp policy for about 2,200 dollars a year. A month later the cleaner slips on a wet floor and sprains a wrist. Workers comp pays the urgent-care visit and a few days of lost wages, and the members pay nothing on the claim. Because they wanted their own injuries covered too, they later elected to include both members, which raised the premium but gave them peace of mind on the job. See trade detail on our workers comp for cleaning and janitorial page.
Real questions Massachusetts owners ask
I have an LLC in Massachusetts. Do I need workers comp?
If your LLC has any employees other than the members, yes, you must cover them from the first hire. As an LLC member you are not required to cover yourself, but you can choose to be included.
I'm a single-member LLC with no employees. Do I need it?
No, not for yourself. A single-member LLC with no employees is not required to carry workers comp. Many owners still buy a small policy because general contractors and clients ask for proof of coverage before they will hire you.
Do LLC members count as employees in Massachusetts?
No. Members of an LLC are treated like owners, not employees, so you are not required to cover yourselves. The moment you hire someone who is not a member, that person must be covered.
Can I add myself to the policy as an LLC member?
Yes. Massachusetts lets LLC members elect to be included in coverage. It raises the premium because your pay gets added to the payroll the policy is based on, but it means your own injuries are covered too.
My LLC only uses 1099 subcontractors. Am I off the hook?
Usually not. Massachusetts uses a strict test, and most people you pay are treated as employees unless they run a genuinely independent business. If a subcontractor is uninsured and gets hurt on your job, you can end up responsible for the claim.
Does it matter if my LLC is taxed as an S-corp?
Mainly for pricing, not for the basic rule. Electing S-corp or C-corp tax treatment does not turn your LLC into a corporation, and you still cannot use the corporate officer exemption form, because an LLC has no stock. But if the election means you take a W-2 paycheck, a carrier may treat that pay differently when figuring your premium. Tell your agent how the business is taxed so the policy is set up right.
How much does workers comp cost for a small LLC?
It depends on the work and the payroll, not on the fact that you are an LLC. Low-risk office work can be a few hundred dollars a year; hands-on trades run into the thousands. We can price it for your exact situation.
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)
- Massachusetts workers comp: the owner's overview
- 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)
- Do sole proprietors need workers comp?
- Hiring your first employee: what changes
- Workers comp for cleaning and janitorial businesses
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.