Code of Massachusetts Regulations
452 CMR - DEPARTMENT OF INDUSTRIAL ACCIDENTS
Title 452 CMR 8.00 - Office Of Investigations
Section 8.07 - Workers' Compensation Policies for Sole Proprietors
Current through Register 1531, September 27, 2024
(1) Pursuant to St. 2002, c. 169 and M.G.L. c. 152, § 1(4), a sole proprietor or the partners of a legal partnership may elect to be an employee and obtain coverage under a workers' compensation insurance policy.
(2) If a sole proprietor or partner wants to be covered as an employee under a workers' compensation insurance policy, he or she must submit a written or electronic request directly to the carrier when a policy is in place or is going to be issued through the voluntary market or to the duly authorized rating organization established by M.G.L. c. 152, § 52C if the policy is going to be assigned through the assigned risk pool. The sole proprietor or partner must reaffirm in writing, or by electronic means, their decision to be covered as an employee on their workers' compensation policy to the insurance carrier annually and prior to the renewal date of the policy.
(3) The effective date of coverage for the sole proprietor or partner shall be either the next policy effective date following the carrier's receipt of a written request from the sole proprietor or partner, or the day following the carrier's receipt of a written request that the election for coverage be made effective mid-term.
All such written requests must be on company letterhead and signed by the sole proprietor or partner. Once electing to be covered under a workers' compensation insurance policy, no sole proprietor or partner may opt out of said coverage until the completion of the current policy term.
(4) Pursuant to M.G.L. c. 152, § 25A, sole proprietors and partnerships are required to provide workers' compensation insurance coverage for their employees. Under M.G.L. c 152, § 1(4), a sole proprietor or partner is given the option to be an employee and be covered under a workers' compensation insurance policy. If a sole proprietor or partnership obtains a workers' compensation insurance policy without specifically electing coverage as described in 452 CMR 8.07 for the sole proprietor or for each or any partner, the sole proprietor and partners shall not be covered under that policy.
