If you do not carry workers comp in Massachusetts, the state can shut your business down with a stop work order, fine you at least 100 dollars a day, and even bring criminal charges. On top of that, an injured worker can sue you directly, and you lose the legal defenses that normally protect employers. In short, going without coverage is one of the most expensive risks a Massachusetts owner can take.
Who this is for: Massachusetts owners who are uninsured, thinking about skipping coverage, or who just want to understand exactly what is at stake.
The short version
- Stop work order: the state can force you to close until you are covered.
- Daily fine: at least 100 dollars a day, 250 dollars a day if you appeal and lose.
- Criminal exposure: up to 1,500 dollars and up to a year in jail.
- Public contract ban: three years barred from state and city-funded work.
- Personal lawsuits: you pay injury costs and lose your usual defenses.
The penalties, laid out
| Penalty | What it means |
|---|---|
| Stop work order | Shut down until covered and the fine is paid; can be issued on the spot |
| Daily civil fine | At least 100 dollars a day (250 dollars a day if you appeal and are found uninsured), including weekends |
| Criminal penalty | Up to 1,500 dollars and up to one year in jail |
| Debarment | Three years barred from public (state and city-funded) contracts |
| Loss of legal defenses | If sued by an injured worker, you cannot blame the worker, a co-worker, or assumed risk |
The lawsuit risk is the one that ruins people
The fines are painful, but the lawsuit exposure is what can end a business. Normally, workers comp is the exclusive remedy: an injured employee gets benefits and cannot sue you. If you are uninsured, that protection is gone. The worker can take you to court for the full amount, and Massachusetts strips away your standard defenses, so you cannot argue the employee was careless, that a co-worker caused the accident, or that the worker knew the job was risky. That combination makes an uninsured injury claim very hard to win. Compare how the coverage and the lawsuit protection fit together in workers comp vs employers liability.
A quick Massachusetts example
Illustrative, not a quote. A small framing contractor in Haverhill runs uninsured for eight months to save money. A state investigator visits a job site, finds no coverage, and issues a stop work order. The fine has already been accruing at 100 dollars a day, and the crew has to go home. Worse, a worker who fell the month before now sues; with no coverage and no defenses, the contractor is personally on the hook for the medical bills and a settlement. The coverage would have cost a fraction of what the shutdown, fines, and lawsuit did. Learn how to get covered fast on our how to get coverage guide.
Real questions Massachusetts owners ask
What happens if I don't have workers comp in Massachusetts?
The state can order your business to stop working, fine you at least 100 dollars a day, and pursue 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 barred from public contracts for three years.
How much is the fine for not having workers comp?
At least 100 dollars for every day you are uninsured, including weekends and holidays, starting when the stop work order is issued. If you appeal and are found to have lacked coverage, it rises to 250 dollars a day. Fines keep running until you are covered and have paid.
What is a stop work order?
It is an order from the state Department of Industrial Accidents that forces you to shut down your business until you get coverage and pay the penalty. It can be issued on the spot when an investigator finds you uninsured.
Can I really go to jail over this?
Yes, it is possible. Failing to carry required workers comp in Massachusetts can be charged criminally, with penalties of up to 1,500 dollars and up to one year in jail. Most cases center on fines and shutdowns, but the criminal exposure is real.
If an uninsured worker gets hurt, what is my exposure?
It is severe. You pay the injury costs yourself, and if the worker sues you, you lose your normal legal defenses. You cannot argue the worker was careless, that a co-worker caused it, or that they accepted the risk. That makes losing very likely.
Does being uninsured affect government contracts?
Yes. Employers who fail to carry coverage can be barred from bidding on state and city-funded work for three years, which can be more damaging than the fines for contractors.
I've been uninsured for a while. What should I do right now?
Get covered immediately; every day adds to the fine. We can usually bind a policy quickly, and if no standard carrier will take you, the state's backup pool must offer you coverage. Fixing it today stops the daily penalty from growing.
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 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?
- 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)
- Workers comp vs employers liability
- What workers comp does not cover
- Workers comp for contractors
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.