Massachusetts Assigned Risk Pool
Massachusetts Assigned Risk Pool is the competitive state workers compensation fund in Massachusetts, operating alongside private carriers. State funds typically serve as the carrier of last resort and also write voluntary policies for any qualifying employer. Verified 2026-05-09.
About Massachusetts Assigned Risk Pool
Massachusetts Assigned Risk Pool is the competitive state workers compensation fund in Massachusetts, operating alongside private carriers. State funds typically serve as the carrier of last resort and also write voluntary policies for any qualifying employer.
State funds were originally created to ensure every employer can find workers comp coverage, even employers private carriers refuse to write. Massachusetts preserved a competitive market, so the state fund competes with private carriers on price and service. Some employers prefer the state fund for stable rates and consistent claims handling; others prefer private carriers for industry specialization or pay-as-you-go billing.
Pricing on a state fund policy in Massachusetts
State funds use the same WCRIBMA class code rate filings as private carriers; the rate per $100 of payroll is the same. Differences come in at the schedule rating stage (where the underwriter applies discretionary credits or debits, capped at 15% in Massachusetts) and the dividend programs (some state funds return a portion of premium to policyholders in good loss years).
Claims handling
Statutory benefits are set by Massachusetts law and apply equally to state fund and private carrier policies. The state fund typically maintains its own in-house claims operation, while private carriers may use third-party administrators (TPAs). Some employers prefer the state fund for the consistency of a single in-state claims team; others prefer private carrier TPAs for specialization in their industry.
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FAQs
What is Massachusetts Assigned Risk Pool?
Massachusetts Assigned Risk Pool is the competitive state workers compensation fund in Massachusetts, operating alongside private carriers. State funds typically serve as the carrier of last resort and also write voluntary policies for any qualifying employer.
Is Massachusetts a monopolistic state for workers comp?
No. Massachusetts is a competitive market where private carriers and Massachusetts Assigned Risk Pool both write workers comp. The state fund typically serves as a carrier of last resort plus a voluntary writer for any qualifying employer.
Who is eligible to buy from Massachusetts Assigned Risk Pool?
Massachusetts Assigned Risk Pool typically writes any Massachusetts employer the private market declines, plus voluntary submissions from employers who prefer the state fund for cost or service reasons. Some state funds have specialty programs for high-risk industries.
Who has to carry workers comp in Massachusetts?
any person or business that employs workers must purchase workers' compensation insurance except (i) individuals employing people to do work on their own homes, (ii) non-profit corporations with no paid staff, and (iii) corporations in which each employee is an officer/director who owns at least 25% of the corporation and each has given up his/her right to workers' compensation benefits in the state.
What is the penalty for skipping coverage in Massachusetts?
Employers failing to carry required coverage face substantial fines, potential imprisonment, stop-work orders, and direct liability for all injury costs.
What is the max weekly benefit on a Massachusetts Assigned Risk Pool policy?
Statutory benefits are set by Massachusetts law and apply equally on private and state-fund policies. The max weekly indemnity benefit is $1,922 (effective 2025-10-01), calculated as 60% of the average weekly wage.