Workers Compensation is mandatory in Massachusetts
Every company doing business in the Commonwealth of Massachusetts that has employees is required to have workers’ compensation insurance pursuant to M.G.L. c.152. With very few exceptions this includes both full and part-time employees but excluding those workers correctly classified as independent contractors under the law. For those needing more information, here is a link to a compilation of laws, regulations, cases, and web sources on workers’ compensation law provided by the Trial Court Libraries.
In addition to being a requirement for businesses in Massachusetts, workers’ compensation insurance itself has a long history here. The first Workers’ Compensation insurance law was passed by the Legislature in 1911 making coverage a requirement for employees. In 1915, the statistical agent for the Commonwealth, the Workers Compensation Rating & Inspection Bureau, was founded and charged with monitoring this marketplace, a duty it fulfills to this day. Finally, Liberty Mutual, now one of the largest Property & Casualty Insurers in the United States, first founded as the Massachusetts Employees Insurance Association (“MEIA”), following the passage of the 1911 law requiring workers’ compensation insurance.
Massachusetts also has enjoyed one of the lowest rates of Workers’ Compensation insurance since the reorganization of the marketplace in the early 1990s. With that said, according to the Division of Insurance, it notes that “…in spite of the many rate reductions and downward company deviations over the last two decades, workers’ compensation insurance continues to be a profitable line in Massachusetts.”
A total of 252 companies currently write workers’ compensation insurance in Massachusetts
- As for the current state of the Workers’ Compensation marketplace, there are a total of 252 companies currently writing this line of insurance as of 2018.
- This is eight companies more than in 2017 when there were 244 companies writing this line of insurance.
- There are currently three Massachusetts-based insurers included in the top 20 largest writers of workers’ compensation insurance:
- Associated Industries of MA Mutual Ins.
- Atlantic Charter Ins Co
- Associated Employers Ins Co
Premium and market share for this line of business
- The total direct written premium for the Workers’ Compensation marketplace in 2018 was $1,276,855,031.
- This amount is only slightly more than total Direct Written Premium amount in 2017 when it was $1,256,353,890.
- The Direct Written Premium of the top 20 largest writers of Workers’ Compensation Insurance was $729,087,393, representing a 57.1% share of the market.
- The remaining 232 companies writing in this line of insurance had a combined Direct Written Premium of $547,767,638 representing a 42.9% market share.
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||$95,873,791||7.51%|
|2. Ace American Ins. Co.||PA||$58,845,653||4.61%|
|3. New Hampshire Ins Co||IL||$52,055,789||4.08%|
|4. Travelers Ind Co Of CT||CT||$47,547,273||3.72%|
|5. Travelers Ind Co Of Amer||CT||$42,515,081||3.33%|
|6. Atlantic Charter Ins Co||MA||$36,098,821||2.83%|
|7. Amguard Ins Co||PA||$34,713,014||2.72%|
|8. Associated Employers Ins Co||MA||$34,618,222||2.71%|
|9. Hartford Underwriters Ins Co||CT||$34,196,497||2.68%|
|10. Travelers Ind Co||CT||$33,027,788||2.59%|
|11. American Zurich Ins Co||IL||$32,945,995||2.58%|
|12. LM Ins Corp||IL||$28,742,411||2.25%|
|13. Travelers Prop Cas Co Of Amer||CT||$28,121,656||2.20%|
|14. Norguard Ins Co||PA||$25,968,799||2.03%|
|15. Liberty Mut Fire Ins Co||WI||$25,377,549||1.99%|
|16. Zurich Amer Ins Co||NY||$25,285,186||1.98%|
|17. Acadia Ins Co||IA||$23,829,565||1.87%|
|18. Twin City Fire Ins Co||IN||$23,286,275||1.82%|
|19. Liberty Ins Corp||IL||$23,061,056||1.81%|
|20. Wesco Ins Co||DE||$22,976,972||1.80%|
Links to other 2020 Massachusetts Market Share Reports
- 2020 MA Market Share Report | Top 20 Auto Insurers
- 2020 MA Market Share Report | Top Commercial Auto Insurers
- 2020 MA Market Share Report | Top 20 Fire Insurance
- 2020 MA Market Share Report | Top 20 Homeowners’ Insurers
- 2020 MA Market Share Report | Top Aircraft (All Perils) Insurers