Business Insurance in Massachusetts
On a daily basis, businesses are exposed to multiple potential risks. Business insurance helps Massachusetts businesses protect themselves from the many perils that they face.
What is Business Insurance?
The term "business" or “commercial insurance” is typically used to distinguish insurance policies that are written for commercial entities, or businesses, from policies that are created for individuals.
Commercial policies may be used to insure almost any business, including sole proprietorships, limited liability corporations, partnerships, and S corporations. They also can sometimes be adjusted to meet the insurance needs of nonprofit organizations and governments.
What Kinds of Commercial Policies Are Available?
Since businesses in Massachusetts face many different risks, insurers have developed a number of different commercial insurance options for businesses. Some common commercial policies that many businesses get are:
- General Liability Insurance, which offers coverage against a host of potential liability claims
- Commercial Property Insurance, which can help protect a business’ commercial property and equipment
- Commercial Auto Insurance, which is usually required if a business owns vehicles that are driven on public roads
- Business Interruption Insurance, which may provide compensation for revenue lost due to a covered incident
- Workers Compensation Insurance, which most businesses that have employees need by law
- Cyber Liability Insurance, which is becoming more and more important as the threat of cyber attacks increases
In addition to these commercial policies that provide protections that many businesses need, there’s also a plethora of more specialized commercial coverages. Sometimes these coverages are added on as riders to other policies, and other times they’re purchased as stand-alone coverages. Just a sampling of the more specialized commercial coverages that are available includes:
- Pollution Liability Coverage, which businesses that transport chemicals may want (among many other businesses)
- Farm or Ranching Loss Coverage, which farms might want for more robust protection
- Liquor Liability Coverage, which restaurants, bars, and event venues may need
- Contractors and Builders Risk Coverage, which homebuilders and remodelers might need
What Are Business Owners Policies and Commercial Package Policies?
Many businesses should have several kinds of commercial policies. At the very least, small businesses frequently need general liability, commercial property, and business interruption coverage. Businesses in certain industries and larger businesses often need several other policies as well.
Business owners policies and commercial package policies are commercial insurance products that let businesses bundle individuals policies together. Business owners policies usually include the three coverages mentioned above that most small businesses need (general liability, commercial property and business interruption coverage).
Sometimes other coverages can be added onto a business owners policy. Commercial package policies can include many different coverages, creating a very flexible multi-policy solution that can be customized to a business’ needs.
Purchasing coverages through a business owners policy or commercial package policy is often less expensive than it would be to get each coverage separately, as most insurers offer significant discounts for bundling coverages together.
What Massachusetts Businesses Need Business Insurance?
Most businesses in Massachusetts need at least a few business insurance policies. After all, almost any business can be sued by anyone, and many businesses have property to protect from vandalism, theft, fire, and other perils. A large company based in Boston, MA may need more insurance protections than a home-based business in Winchester, MA, but both of them are exposed to risk and should have at least some protections in place.
How Can Businesses Get Business Insurance Policies?
Getting business insurance is a lot like shopping for personal insurance. Businesses in Massachusetts that would like help determining what protections they should have in place should contact an independent insurance agent who’s licensed in the state and specializes in commercial insurance. Such an agent will be able to help a business decide whether it needs individual policies, a business owners policy or a commercial package policy, and find the solution that works best for the business.
