A business is prone to losses due to various reasons like industrial fires, natural disasters, and human-made disasters. A business insurance plan protects you from losses due to unfortunate and unexpected events. In the absence of business insurance coverage, the business owners would be required to pay all costs and expenses of rebuilding the business from their own pockets. This article discusses what kind of coverage you can get with business insurance in Massachusetts.
Types of Business Insurance
Insurance coverage depends on the type of insurance. There are different kinds of business insurance in Massachusetts that include:
Business Owner Policy
The business owner policy is a necessity for businesses of all sizes. It combines property and general liability insurance into one. Do you know Massachusetts ranks at 5th position in the US for Natural disasters? Every year the Bay state experiences substantial economic losses due to flash floods caused by torrential rains, storms, and other natural calamities.
A business owner policy protects businesses against perils, property damage, business interruption, and liability. The coverage changes with insurance providers. You need to take a detailed look at the things covered in the insurance plan. You might be required to get add-ons for fidelity, forgery, crime, and spoilage of merchandise.
Commercial Liability Insurance
Every business in Massachusetts needs to get commercial liability insurance. Commercial liability insurance offers compensation to cover injuries and damages that occur on business premises. According to the latest statistics, 220 people were injured in Massachusetts in 2016-2017. The injured people included 21 women and 119 men.
Commercial liability insurance can be categorized as general liability and professional liability. The risks covered in general liability and professional liability are different. The general liability insurance plan is recommended for small businesses in Massachusetts that includes common business risks. Its coverage includes medical payments for the injured and legal expenditure for lawsuits.
Professional liability insurance is recommended for MA businesses that offer specialized services. The coverage includes compensation for work mistakes, negligence, incorrect or incomplete work that may cause loss to their clients. Companies operating in medicine, construction, finance, and real estate need to opt for professional liability insurance.
Commercial Property Insurance
According to a Washington Post report, Essex County in Massachusetts witnessed 34 declared natural disasters in recent years. The state of Massachusetts is prone to natural disasters. The statewide hazard assessment, the flooding incidents, including Ice Jam, are relatively high in Massachusetts. The probability level for such an event occurrence is increased in Massachusetts.
Every business has physical assets that are required to run the business smoothly. In a natural disaster, the business assets can suffer extensive damage causing business interruptions for long periods. The commercial property insurance offers coverage to your physical assets, including office buildings, equipment, furniture, and other valuables.
When buying business insurance in Massachusetts, you need to mention the perils against which you seek protection. You need to specify the losses that need to be covered in the insurance plan. Commercial property insurance covered can be extensive and expensive.
Employee Disability Insurance
Massachusetts has around 599,389 small businesses, out of which 175,217 businesses have employees. Companies employing people need to have employee disability insurance. It provides extended protection to your employees. Employee disability insurance provides income to employees who cannot work for a long time due to non-work-related injuries or illnesses.
To sum up, when taking business insurance, you need to assess the level and kind of coverage your business needs. Since there is no standard related to insurance coverage, you need to get a clear idea of what coverage you will get against the insurance fees. You need to ensure the insurance coverage meets the industry compliance set by the state laws. Getting business insurance might not look easy, but you can secure your business from losses incurred by unexpected events with the right guidance.
2018 · 
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