Workers comp in Massachusetts is priced on your payroll and the kind of work you do, not on your revenue. Low-risk office work can cost only a few hundred dollars a year, while hands-on trades run into the thousands. The good news for Massachusetts owners: state rates are on the lower side nationally, and a large rate cut ordered in July 2024 is, as of mid-2026, still in effect.
Who this is for: Massachusetts owners who want a realistic sense of what workers comp will cost and what drives the number up or down.
The short version
- Priced on payroll and work type, not revenue.
- The formula: payroll, times a rate for your type of work, adjusted by your claims-history score.
- Massachusetts rates are relatively low, and a 2024 cut still holds as of mid-2026.
- Year-end review: your bill is trued up to your actual payroll.
- You can lower it: correct categories, clean claims history, and shopping at renewal.
What drives the price
Three things decide most of your premium: how much you pay your people, the category your work falls into for pricing (the class code), and a score based on your past claims (the experience mod). Put simply, more payroll, riskier work, or a worse claims record all push the price up.
Illustrative Massachusetts ranges
These are illustrative annual ranges for small Massachusetts businesses, not quotes. Massachusetts does not publish a single flat minimum premium; each type of work has its own rate, plus a small fixed charge. Your real number depends on payroll, claims history, and the carrier.
| Type of work | Relative rate | Illustrative cost per year |
|---|---|---|
| Clerical or office | Low | A few hundred dollars for a small payroll |
| Retail shop | Low to moderate | Roughly 1,000 to 4,000 |
| Restaurant | Moderate | Roughly 2,500 to 9,000 |
| Landscaping or cleaning | Higher | Roughly 3,000 to 12,000 |
| Roofing or framing | Highest | Many thousands; the top trades for rate |
For the national picture and how states compare, see the national workers comp cost guide, and to lower your own score read what is an experience mod and how do I lower it.
The year-end surprise (and how to avoid it)
Your premium starts as an estimate based on the payroll you expect. At the end of the policy year, the insurer reviews your actual payroll and adjusts the bill: if you paid out more than expected, you owe more; if less, you get money back. The way to avoid a nasty surprise is to keep your payroll estimate honest and your worker categories accurate from the start.
A quick Massachusetts example
Illustrative, not a quote. A landscaping company in Framingham has about 200,000 dollars in crew payroll. Landscaping is hands-on work, so it sits in a higher-cost category; the policy comes in around 8,000 dollars for the year. After two seasons with no claims, the company's claims-history score drops below average, earning a discount that trims the renewal. By keeping crews categorized correctly and running a simple safety program, the owner shaves hundreds more off the price. Trade detail is on our workers comp for landscapers page.
Real questions Massachusetts owners ask
How much does workers comp cost in Massachusetts?
It is based on your payroll and the type of work, not your revenue. Low-risk office work can be a few hundred dollars a year; hands-on trades run into the thousands. Massachusetts rates are on the lower side nationally.
How is the price actually calculated?
Roughly, your payroll is divided into 100-dollar units, multiplied by a rate for your type of work, then adjusted by a score based on your past claims. More payroll, riskier work, or worse claims history all raise the price.
How does my type of work change the price?
A lot. Every kind of work sits in a pricing category, and riskier work costs more. A clerical office worker sits in a low-cost category; a roofer sits in a high-cost one. Insurers call that category your class code, and putting people in the wrong one is a common way businesses overpay.
What is the score that raises or lowers my price?
It is based on your past claims. A clean history earns a discount over time; a claim-heavy history adds a surcharge, and it updates on a rolling multi-year basis. Insurers call it your experience mod.
Are Massachusetts workers comp rates going up or down?
Massachusetts ordered a large rate decrease in July 2024, and a proposed increase for 2025 was rejected, so as of mid-2026 the lower level is still in place. Your own price still depends on your work and claims history.
Will I get charged more later?
Possibly, at the year-end review. Workers comp premiums are estimates based on projected payroll; at the end of the year the insurer checks your actual payroll and adjusts the bill up or down.
How do I lower my workers comp cost?
Classify your workers correctly, keep your claims history clean with safety and return-to-work practices, and shop the market at renewal. We review all three for our Massachusetts clients.
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?
- What happens if I don't carry workers comp?
- 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)
- What is an experience mod, and how do I lower it?
- Glossary: workers comp class code
- Workers comp for landscapers
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.