I am New Business Owner; How Do I know If I need Work Comp’s Insurance?

As a new business owner, you have probably gone down the list of all the requirements you may need to start your business. You have gone through the checks and balances, equipment, employees, and verifying that you are ready to provide services to clients. But did you consider insurance for worker’s comp?  Worker’s Comp insurance in Massachusetts is very important to consider and have, even if you only employed one person. Taking action to get insurance certifies that you and your employees are covered, should anything happen to them while on the job. It also protects you from potential threatening lawsuits to your business. It is Massachusetts Law to get Worker’s Comp insurance. Only under certain circumstantial cases are you able to be exempt from Worker’s Compensation?


Do I need to provide Worker’s Comp Insurance?

Depending on the nature of your business you may not need to require worker’s comp to your employees.

 If your line of business or employees does not fall in the list of the following cases below

It is Regulatory Required for you to be covered as a business owner of your employment.

  1. Trade involves interstate foreign commerce and works on a ship with mariners
  2. Professional Athletes under such contracts in which employer has discussed term and payments for athletic related injuries
  3. Real Estate salesmen or women who have agreed to terms in which the employer is only liable for compensations from commissions in distinction to Home sales and or rental property
  4. This also goes for salesmen and women of consumer products under contract in which they are only compensated for sales related to commissions. Salesmen have also agreed to terms where they are  not considered employees for federal tax functions as they are in no compatibility to hours worked. Does not apply to retail establishments.
  5. Taxi Cab Driver who has leased a car from taxi cab company, and has agreed to contract in which said company is only responsible for said rental fees and other payments; but not in any way liable for taxi fare in a way that makes driver qualified as an employee for federal taxes functions.
  6. A person employed by a business or trade involved in interstate or foreign commerce but only as far as the laws of the U.S are able to provide for compensation for their injury or death.
  7. A person whose employment does not particularly match up with his employer’s line of business. This is in exception to a person who is definitely considered employee of said business under Chapter 26 under Massachusetts commonwealth Law.


If you would like to learn more about Massachusetts Worker’s Comp Laws visit Mass.Gov for more specifications.


If your line of business or trade does not fall into any of these categories, we strongly recommend for you to look into a policy that works for you. At Walsh Insurance Company, we are here to help. In Massachusetts having insurance is for your own benefit at having a no-fault insurance in which it protects you from liability for employee’s injuries at their place of employment.

Contact Walsh Insurance at 978-745-3300 or visit us online at WalshInsurance.Com and fill out a contact form for a representative to help you with your needs.