An amendment to the MA Worker’s Compensation Law passed this month makes it legal for a plaintiff to sue any business that fails to properly pay its MA Workers Compensation Insurance premiums. The statute was revamped in an attempt to curb the practice of attempting to cut costs by skimping on this obligation. This type of fraud is most often seen in industries where hazards are relatively high, because businesses in these sectors pay the highest premiums.
The law is intended to give legal recourse to competitive firms that do meet their obligations and cannot compete with the low priced bids that firms partaking in the fraudulent practice are able to offer. Defendants that are found guilty will have to pay the full amount of insurance premiums they have neglected, as well as up to 25% of that figure in additional damages. The latter payment will be placed in the MA Workers Compensation Trust Fund, which is designed to aid injured workers that were unable to collect insurance due to their employer’s irresponsibility.
Remaining cost conscious is recommended for any business of any industry, but not when it comes to irresponsibly handling obligations, especially those to a business’s own employees. Call a Lexington, MA Insurance agent at 888-865-1244 today to discuss our comprehensive selection of MA Business Insurance products or visit us at www.encharter.com or on Facebook & Twitter.
And remember, at Encharter, “It’s all about protecting you!”
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