Presented by Michael Regan
The Massachusetts Construction Classification Premium Adjustment Program (MCCPAP) applies to employers who are eligible for workers compensation experience rating and have exposure in any of the enumerated construction classifications. The MCCPAP may reduce an employer’s workers compensation premium. The calculated credit is applied to all of the employer’s workers compensation classifications.
The basic premise for the credit is that contractors who pay “prevailing” or union wages are at a workers compensation premium disadvantage to those that don’t; even though the work is the same and the exposure the same.
For example, a carpenter in North Adams has the same work exposure as a carpenter in Boston. But, the wages are higher in Boston then in North Adams. The MCCPAP helps to level this variance for Workers Compensation premium purposes. In fact, I have seen credits of over 20% applied to some of our account which is a major cost savings.
A contractor may apply for the MCCPAP at the Massachusetts Workers Compensation Rating bureau website, www.wcribma.org. If a credit is calculated the Bureau will notify the insurance carrier on behalf of the employer and the credit would be automatically applied.