Short answer: Massachusetts requires every employer to carry workers' compensation, regardless of employee count or hours. Employers must also register for Paid Family and Medical Leave (PFML) and remit contributions. Employers with 25 or more covered individuals pay an employer share on top of the employee share. For auto policies issued or renewed from July 1, 2025, minimums rose to $25,000/$50,000 bodily injury, $30,000 property damage and $8,000 PIP.
This guide is general information for Massachusetts employers and business owners. It isn't legal advice. Agency rules change, so confirm with the agencies linked below.
1. Workers' compensation
All Massachusetts employers must carry workers' comp, regardless of employee count or hours. Details: is workers comp required in Massachusetts.
2. PFML
Per Mass.gov, employers register and remit PFML contributions. Employers with fewer than 25 covered individuals don't have to pay the employer share, but they must still remit the employee portion. Current rates are on the state's contribution rates page.
3. Business vehicles
Per the Division of Insurance bulletin, for policies issued or renewed on or after July 1, 2025, the compulsory minimums are:
- bodily injury: $25,000/$50,000,
- uninsured motorist: $25,000/$50,000,
- property damage: $30,000, and
- PIP: $8,000.
See commercial auto insurance.
State unemployment insurance
Unemployment insurance is the other employer coverage Massachusetts makes mandatory. Per the U.S. Department of Labor's Significant Provisions of State UI Laws, January 2026, Massachusetts employers are covered once you meet the coverage test of 13 weeks or $1,500 in any quarter. The 2026 taxable wage base is $15,000 per employee. Experience-rated employers pay 0.94% to 14.37%, and new employers start at a base rate of 2.42% (higher rates can apply by industry). Register with the state's unemployment tax agency when you hire.
Beyond the mandates
Most other coverage, like general liability, property, professional liability and cyber, comes from contracts, leases and lenders rather than Massachusetts law. See small business insurance by industry or home-based business insurance. For-hire interstate carriers also face federal minimums under 49 CFR 387.9, starting at $750,000.
Questions? Contact Alishahi Insurance or call (877) 711-4545. See insurance in Massachusetts.
Frequently asked questions
Do small Massachusetts businesses pay PFML?
With fewer than 25 covered individuals, you don't pay the employer share, but you must still remit the employee portion.
What are the Massachusetts auto minimums after July 2025?
25/50 bodily injury, 25/50 uninsured motorist, $30,000 property damage and $8,000 PIP.
Do Massachusetts employers have to pay for unemployment insurance?
Yes, once covered. The 2026 taxable wage base is $15,000, and new employers start at 2.42%.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.