Over 669,000 small businesses are home to the Bay State of Massachusetts. And, about 45% of the state’s employees work at a small business. To run a small business company successfully, small business insurance is essential as it lays a thriving business foundation.
When it comes to choosing your small business insurance in Massachusetts, you need to ensure that you have all the requisite coverage to protect your business from specific and unique operational risks. This can include common risks such as general liability to pay for property damages, bodily injury, advertising injury, litigation risks, and other specific risks such as natural disasters, fire or professional liability, and cyber liability.
What Does Small Business Insurance Cover?
Different types of small business insurance can help protect from various claims. Here are a few of the basics:
- General Liability Insurance –
This type of insurance covers common risks, including customer property damage, injuries, and libel or slander lawsuits, to name a few. This is why small businesses like construction or tree services should carry
- Business Property Coverage –
This coverage in small business insurance protects your business premises, buildings, and content such as office furniture, computers, or machinery against natural perils such as fire and other natural calamities.
- Business Interruption Coverage –
Also referred to as business income coverage, this insurance helps to replace the lost income and extra expenses if your business is affected by a natural disaster. For instance, if a tornado or fire makes your office not fit for resuming work, this insurance can help pay for the costs of temporarily renting another office while repairs are undertaken, up to the specified limit of the policy.
- BOP or Business Owner’s Policy –
It is a common insurance policy that several small business owners prefer to get started with as it combines the above three policies in a comprehensive coverage plan. Each coverage in your BOP comes with a coverage limit and applicable deductibles toward a covered claim. Read your policy documents to know this in detail.
- Workers Compensation Insurance –
This type of small business insurance in Massachusetts is mandatory for all businesses with employees to cover medical costs for work-related injuries or illnesses.
- Commercial Auto Insurance –
It covers injuries and property damages in an accident, along with vehicle theft and other types of damages.
- Professional Liability Insurance –
Also known as errors and omissions insurance, it covers client lawsuits over mistakes and missed deadlines.
- Cyber Liability Insurance –
This policy helps Massachusetts digital businesses survive data breaches and cyber-attacks, covering client notification costs, legal fees, and other related expenses.
How Much Does a Small Business Insurance Cost?
Commercial insurance can be affordable for a small Massachusetts business. Factors that influence the cost include:
- Your industry and risk
- Coverage limits
- Number of employees
Small Business Insurance in Massachusetts – Essential Requirements for Business Owners
The MA Division of Insurance monitors and regulates the insurance practices statewide. It mandates all businesses to have workers’ compensation and commercial automobile insurance if they use owned or rented vehicles in their business.
Apart from this, it is also recommended to have a BOP because it has all the basic coverage, and you can opt for additional coverage as per the business’s needs and requirements.