Workers Compensation is mandatory in Massachusetts
As many in our industry already know, worker’s compensation insurance in mandatory in Massachusetts. According to Massachusetts law, any employer operating within the Commonwealth and with at least one employee, is required to maintain workers’ compensation insurance for those employee(s).
Workers compensation insurance has a long history in Massachusetts with the first Workers’ Compensation insurance law passed in 1911 requiring coverage for employees. The statistical agent for the Commonwealth, the Workers Compensation Rating & Inspection Bureau, also dates from the same era, having celebrated its centennial in 2015. Finally, Liberty Mutual, now one of the largest Property & Casualty Insurer in the United States, was first founded as the Massachusetts Employees Insurance Association (“MEIA”), following the passage of the 1911 law requiring workers’ compensation insurance.
Massachusetts also enjoys one of the lowest rates of Workers’ Compensation insurance as measured in the biennial report published by the Oregon Department of Insurance.
Facts about the Workers’ Compensation marketplace
- As for the current state of the Workers’ Compensation marketplace, there are a total of 244 companies that write this line of insurance.
- The total direct written premium for these companies in the Commonwealth is $1,256,353,890.
- Of that amount, the top 20 workers’ compensation companies have a direct written premium of $662,798,362 up from 2016 when it was $588,277,821.
- This amount represents a 52.8% market share.
- The remaining 224 companies who write workers’ comp. insurance in the Commonwealth have a combined direct written premium of $593,555,528 representing a 47.2% market share.
Who are the top 20 writers of Workers’ Compensation insurance in Massachusetts?
| Company Name | State | Premium Written in MA | Market Share in MA |
1. Associated Industries of MA Mutual Ins. |
MA |
$100,855,401 |
8.03% |
2. Ace American Ins. Co. |
PA |
$57,358,917 |
4.57% |
3. New Hampshire Ins Co |
IL |
$47,733,265 |
3.80% |
4. Travelers Ind Co Of CT |
CT |
$42,398,915 |
3.37% |
5. Travelers Ind Co Of Amer |
CT |
$42,338,712 |
3.37% |
6. Travelers Ind Co |
CT |
$41,444,104 |
3.30% |
7. Atlantic Charter Ins Co |
MA |
$37,193,810 |
2.96% |
8. Hartford Underwriters Ins Co |
CT |
$34,921,851 |
2.78% |
9. Amguard Ins Co |
PA |
$33,015,255 |
2.63% |
10. Associated Employers Ins Co |
MA |
$32,999,478 |
2.63% |
11. American Zurich Ins Co |
IL |
$30,926,107 |
2.46% |
12. Travelers Prop Cas Co Of Amer |
CT |
$29,811,833 |
2.37% |
13. LM Ins Corp |
IL |
$27,605,918 |
2.20% |
14. Liberty Mut Fire Ins Co |
WI |
$26,914,589 |
2.14% |
15. Acadia Ins Co |
NH |
$26,397,986 |
2.10% |
16. Zurich Amer Ins Co |
NY |
$25,826,151 |
2.06% |
17. Twin City Fire Ins CO CO |
IN |
$25,056,070 |
1.99% |
18. Wesco Ins Co |
DE |
$24,287,487 |
1.93% |
19. Norguard Ins Co |
PA |
$23,743,238 |
1.89% |
20. Independence Cas Ins Co |
MA |
$21,981,945 |
1.75% |