Worker’s Compensation Exemption Now Available
November 1, 2002
SPRINGFIELD, MA – Recently a change has been made in the Commonwealth of Massachusetts relative to workers’ compensation coverage for sole proprietors, partnerships and corporate officers. In the past, these parties were obligated to pay workers compensation insurance, but the revision provides an exemption for an officer holding at least 25% of the corporate ownership. In order to qualify for this exemption an Affidavit of Exemption for Certain Corporate Officers or Directors must be filed annually with the Department of Industrial Accidents and with the company’s insurer prior to policy renewal.
The major benefit resulting from this exemption is the reduction of worker’s compensation expense. Although any employees who do not own at least 25% of the company’s stock are not exempted, and their premiums must be paid, small companies that are top heavy with owners may significantly cut this expense by exempting themselves.
It is important to note that an individual considering this exemption should have adequate health coverage, and should confirm that it does not contain a work exclusion clause.
Bacon & Wilson, P.C. has a total of 26 lawyers plus 40 paralegals, secretaries and other support staff. The firm’s main office is located in Springfield, with additional offices in Westfield, Northampton and Windsor Locks, Connecticut. The firm was founded in 1895 by George A. Bacon. Today, Bacon & Wilson provides legal services in almost every area of the law to clients throughout Western Massachusetts and Northern Connecticut.