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Self Insurance

Section 25A of M.G.L., Chapter 152 provides, in part:

"In order to promote the health, safety and welfare of employees, every employer shall provide for the payment to his employees of the compensation provided for by this chapter in the following manner:

(1) By insurance with an insurer, or by membership in a workers' compensation self-insurance group, established pursuant to the provisions of sections twenty-five E to twenty-five U, inclusive, or

(2) Subject to the rules of the department, by obtaining from the [department] annually a license as a self-insurer".

(Note - Under Section 25B: "Section twenty-five A shall not apply to the commonwealth or the various counties, cities, towns and districts provided for in sections sixty-nine to seventy-five, inclusive. Any employer may bring an employee or employees for whom he is not required by this chapter to provide for the payment of compensation within the coverage of this chapter by providing for the payment of compensation to such employee or employees as provided by this chapter ".)

Self-Insurance Groups (SIGS):

The Commissioner of Insurance has designated the WCRIBMA, pursuant to Massachusetts Regulation 211 CMR 67.09, as the organization that will produce the experience rating modifications and ARAP adjustments for members of workers' compensation self-insurance groups approved to do business in the Commonwealth.

The Classification System, Experience Rating Plan, ARAP Program, Merit Rating Program, and manual rules filed by the WCRIBMA and approved by the Commissioner are all applicable to the self-insurance groups, unless otherwise specified by statute.

Upon the signing of the Agreement and payment of an annual affiliation fee by the Group, the WCRIBMA will perform the appropriate experience rating and All Risk Adjustment Program (ARAP) calculation for each member of the Group for a specified fee per experience rating and ARAP calculation. Individual groups must submit to the WCRIBMA:

  • copies of the certificates (policies),

  • payroll and loss data in accordance with the Massachusetts Workers' Compensation Statistical Plan, and

  • annual statements as reported to the Division of Insurance.

Licensed Self-Insurers:

Any employer who wishes to be licensed as a self-insurer must make application for such license to the Department of Industrial Accidents.

Additional Reference:

Circular Letter #1985 dated April 8, 2005 - Workers' Compensation Self-Insurance Groups



Program Overview

The Workers' Compensation Rating and Inspection Bureau of Massachusetts
101 Arch Street, 5th Floor
Boston, MA 02110