Who Am I Responsible For Covering Under My Workers’ Compensation Policy?

As an employer, not matter what industry your company is in, you have a responsibility to your employees. Protecting them is part of your role. In the moving and storage industry, sometimes it may feel as if there are more risks than you are able to protect against. Fortunately, workers compensation exists to take care of everything and ease your fears.

In general, employers are responsible for protecting and providing workers’ compensation benefits to three different types of employees:

1. Direct employees – A person hired to perform services or tasks under the direct control of another.
2. Employees of uninsured subcontractors – While these types of employees are not limited to the construction industry, this is typically a contractor/subcontractor relationship. Three parties are involved: (1)the owner, who hires (2)the independent contractor to complete work and (3)the subcontractor hired by the independent contractor.
3. DeFacto employees – Despite being an independent contractor, the IRS may still consider this employee an “employee-in-fact”.

In Massachusetts, there are certain circumstances were contractor and subcontractor rules apply.

• Massachusetts Workers Compensation system protects workers from injury or work-related illness
• Massachusetts General Laws c. 152, § 25A mandates that all employers provide this coverage to their employees

Additionally, the state mandates that all employers provide workers compensation insurance. Fortunately, the moving and storage industry can bundle that type of protection under their movers insurance. Remember: all moving companies are required to carry worker’s compensation. In the event an employee is injured while moving someone else’s belongings, workers compensation protects both the employee and the employer. Injury can result in a lawsuit, especially without the proper insurance in place.

With workers compensation insurance as part of your moving company’s protection, you can have a legal process for handling any injury. It is no secret that there is risk involved in what  you do every day, so having a plan in place is essential to avoid lawsuits and claims, and keep your business running effectively.

The Department of Industrial Accidents (DIA) handles worker’s compensation law in Massachusetts.  However, at Wolpert Insurance, our agents can help you distinguish the amount of risk your moving and storage company faces and obtain the adequate amount of workers compensation insurance to protect you and keep you in line with legal requirements. We can talk about employer obligations and employee requirements. Whether you have questions about experience modification factors, workers compensation insurance for the moving and storage industry, or need assistance with existing claims, we can help! All you have to do is give us a call – we can’t wait to be of assistance.

*