The Consequences of Having No Workers Compensation

As a business owner in the state of Massachusetts, you should have a pretty good understanding of workers compensation. More than likely, you understand what workers compensation is and when workers compensation is required. However, are you aware of the consequences of NOT having workers compensation? This week, we have the answers right here.

If you are an employer who is operating WITHOUT workers comp, you will be issued a STOP WORK ORDER by the Department of Industrial Accidents’’ (DIA) Office of Investigations. You may also be required to pay a minimum fine of $250 per day, beginning on the day that the STOP WORK ORDER has been issued and ending on the day that workers comp insurance becomes effective.

What may be scarier than the fine is the fact that you COULD be subject to criminal sanctions. This may include up to a year in prison and/or a fine up to $1500 upon conviction.

According to, there has also been an addition to penalties. It reads:

“(10) In addition to being subject to the civil penalties herein provided, an employer who fails to provide for insurance or self insurance as required by this chapter or knowingly misclassify employees, to avoid higher premium rates, will be immediately debarred from bidding or participating in any state or municipal funded contracts for a period of three (3) years and shall when applicable be subject to penalties provided for in (MGL c. 152) § fourteen (14)”.

As a trusty insurance agency, we are always here with workers compensation information for employers. We hope that you have found this helpful.

Next question: How do I get workers compensation? Well, you are in luck! Call us at Wolpert Insurance and we would be more than happy to provide you with a free Massachusetts workers compensation quote.