Massachusetts Business Insurance Guide 2026

Who must carry it: Every employer; no minimum headcount (Massachusetts General Laws, Chapter 152, Section 25A (Massachusetts Legislature)).

Exemptions and exclusions

Coverage is elective for employers of seasonal, casual or part-time domestic servants (part-time means under 16 hours a week) and for corporate officers or directors owning at least 25% of the stock who file a written waiver (G.L. c. 152 § 1(4)). Section 1(4) lists other exclusions; read it for any worker you are unsure about (G.L. c. 152 § 1).

The agency to ask is the Massachusetts Department of Industrial Accidents. Pricing is separate from the legal rule: the workers' comp calculator multiplies the payroll, rate and modifier you enter, and the workers' compensation guide explains the coverage.

Massachusetts sets these minimum auto liability limits:

• Bodily injury liability: $25,000 per person and $50,000 per accident
• Property damage liability: $30,000 per accident
• In force: for policies issued or renewed on or after July 1, 2025 (Chapter 275 of the Acts of 2024); the earlier minimums were $20,000, $40,000 and $5,000
• Source: Massachusetts Acts of 2024, Chapter 275, An Act Relative to Motor Vehicle Insurance (malegislature.gov)

Personal injury protection of $8,000 per person and uninsured motorist bodily injury coverage at the compulsory bodily injury limits are also required for vehicles registered in Massachusetts (G.L. c. 90 § 34A; G.L. c. 175 § 113L). Ask your insurer whether these also apply to your commercial and fleet policies.

Commercial and for-hire vehicles can face different or higher federal or state requirements, and leases, lenders and clients can ask for more; see our commercial auto guide.

Massachusetts Paid Family and Medical Leave (PFML), run by the Department of Family and Medical Leave, is funded by employer remittances of withheld employee contributions plus an employer share. For 2026 the total rate is 0.88% of eligible wages for employers with 25 or more covered individuals and an effective 0.46% for smaller employers, who owe no employer share. Chapter 101 of the Acts of 2026 shifts the employer contribution from medical to family leave from January 1, 2027 (Mass.gov PFML contribution rates). In 2026 the maximum weekly benefit is $1,230.39 (Mass.gov PFML overview and benefits).

What employers do: Withhold PFML contributions from covered individuals' pay and send them, plus the employer share if the employer has 25 or more covered individuals, to the DFML (Mass.gov PFML contribution rates). An employer that offers its own paid leave may request an exemption and provide it through a self-funded or insured private plan with benefits as good as or better than the state plan's; an exempt employer still follows the PFML law (Mass.gov PFML overview and benefits). Confirm current figures and any private-plan option with the Massachusetts Department of Family and Medical Leave (DFML).

Beyond state law, a Massachusetts license, lease or client contract can impose its own insurance or bond conditions, such as general liability limits. Record each request in the certificate of insurance checklist; other states are in the requirements-by-state guide.

• Workers' compensation: Massachusetts Department of Industrial Accidents
• Auto liability minimums: Massachusetts Acts of 2024, Chapter 275, An Act Relative to Motor Vehicle Insurance (malegislature.gov)
• Paid leave and disability insurance: Massachusetts Department of Family and Medical Leave (DFML)

Use the state requirements checklist to organize what to ask. You can also request coverage help for a PolicyBenchmark follow-up about your Massachusetts business.