Business Insurance

Massachusetts Business Insurance Requirements

Businesses in Massachusetts are required by law to have workers’ compensation insurance for employees, regardless of the type of work or working hours. However, if you run a sole proprietorship, you do not need this insurance since you will not have any employees. Similarly, all company-owned vehicles in Massachusetts must be insured with commercial auto insurance, and drivers operating these vehicles should each have the state’s minimum automobile insurance. Commercial property insurance, on the other hand, is not a legal requirement for Massachusetts business insurance. However, if you are trying to secure a property loan for your business, your mortgage lender may require this as a precaution. Similarly, industry-specific insurance policies are also required for certain businesses due to the nature of the work. For example, businesses selling alcohol must get liquor liability insurance, while dry cleaners need more extensive liability policies as they handle clients’ garments.

Recommended Business Insurance Policies in Massachusetts

Aside from the insurance coverage required by law, other insurance policies are highly recommended for businesses. Without ample business insurance in massachusetts, you will have to settle liability claims on your own and, in some cases, this can prove to be a huge financial burden.

1. Commercial Liability Insurance

Commercial liability insurance is important for all kinds of businesses. It covers injuries or damage that may have occurred within your business premises or caused by your business operations. There are two common types of liability insurance: general liability and professional liability, each of which covers different risks. General liability is highly recommended for small business insurance in Massachusetts since it covers the common business risks. Specifically, it includes bodily injury claims form people who may get hurt within your business, medical payments associated with the said injuries, legal expenses from slander lawsuits, and other similar issues. Its cost will depend on your location, the type of business you have, and the length of your experience in the industry. Professional liability insurance, on the other hand, is usually applicable to businesses that provide specialized services. It covers legal expenses and settlement fees for issues like negligence, work mistakes, and incomplete or incorrect work that may have caused a loss for your client. This type of insurance is highly recommended to be added to a business owner’s insurance policy offering professional services, such as real estate, construction, finance, medicine, and other similar fields.

2. Commercial Property Insurance

Every business operates with properties that are essential to keep things running smoothly. These assets tend to be valuable and costly, so getting property insurance protects your business from damage or loss to buildings and their contents. Specifically, commercial property insurance covers the buildings you own or lease, any property on these premises, and other personal property in your business’ custody. For this type of insurance, you can choose what perils you want to include in your policy by specifying the exact causes of loss you want to cover. Alternatively, you can also opt for an open peril policy, which covers all losses other than those that are excluded. This option is usually more extensive and thus more expensive.

3. Business Owner’s Policy

The business owner’s policy (BOP) conveniently puts together general liability insurance and property insurance into one plan. It is highly recommended for small and medium businesses in Massachusetts since it is cost-effective but still broad and encompassing. The exact inclusions and coverage level of a BOP will vary based on the insurance provider and price. Feel free to contact any of our experienced agents to discuss your options.

4. Employee Disability Insurance

Employee disability insurance allows you to provide extended protection for your workers. It provides income for employees or business owners who cannot work for a long time due to a non-work-related injury or illness. It differs from disability benefits provided by workers’ compensation insurance since it only covers injuries and illnesses that occurred outside the workplace.

How to Insure My Business?

Getting business insurance in ma starts with assessing your business and determining the level and extent of coverage it needs. The first thing you must consider is the minimum insurance required by law, which will vary based on the type of business you operate. Next, if you are working with lenders, you also have to account for possible insurance requirements. Finally, you must consider your budget to ensure that you can afford to pay your premiums regularly. We understand that getting a business owner’s insurance policy is not the easiest, so we strive to help you find the perfect policy to suit your needs. As a business owner, you will likely take all possible measures to ensure a safe working environment and the provision of quality products and services. However, in any business line, the risk is inevitable, so taking charge by investing in an insurance policy will protect your business from such perils. If you own a small or medium business, you will likely be in charge of assessing risks and variables to determine the best insurance coverage. As this process can be overwhelming, our team is here to help you through every step and guide you in making your decision.