Do I Need Workers’ Compensation Insurance for Our Family-Run Brick and Mortar Business?
As the owner of a thriving online business transitioning into a physical store, new responsibilities undoubtedly arise. One common query for entrepreneurs in this situation is whether they must obtain workers’ compensation insurance, particularly when family members are involved in the business operations without regular pay.
In our case, the business has traditionally been a family affair, with relatives contributing as needed. Until now, we have opted not to draw personal salaries, instead allowing profits to grow within the business itself. However, this raises an important question: As we move into the world of brick-and-mortar, is it necessary to start paying family members for their work and, consequently, to secure workers’ compensation insurance for them?
Operating from Massachusetts, it’s vital to understand the state’s specific regulations concerning workers’ compensation. Generally, Massachusetts mandates workers’ compensation insurance for all employees, including family members, regardless of the frequency or nature of their contributions.
Ensuring compliance with these laws not only protects the business but also safeguards the well-being of those who provide valuable support to its operations. As such, obtaining the necessary coverage is both a legal obligation and a prudent business practice that can offer peace of mind as the business evolves and expands.
