Doing Business in Massachusetts: Important Things You Should Consider Before Buying Commercial Insurance

Massachusetts has a thriving business ecosystem that supports startups and allows them to flourish.

Today, there are roughly 600,000 small-sized businesses all over Massachusetts. This is extremely beneficial as members of the community prefer buying from local businesses.

This helps create an environment conducive to new businesses. The success achieved by large and small businesses in the state has contributed to its increasing economic growth.

If you plan to start a business here, you have to consider a couple of things before you begin operating. First, you have to look for a provider of commercial insurance MA. Next, you have to scout for strategic areas to position your business. You also have to check the requirements for new businesses, your target market, the human resource pool, etc.

While all of these business considerations are equally important, selecting your commercial insurance requires extra attention too. To help you decide what commercial insurance firm to work with, here are essential considerations that you should check.

State-Required Insurance Policies

While the business insurance you need depends on the kind of business you have, there are general guidelines to observe. First, check if any of your loans or contracts require you to subscribe to a specific type of insurance.

• General Liability: This is required by the state government or by the institutions you work with as protection in case they cause damage or injury while working with you.
• Workers Compensation: This is also required by the state to protect your workers if they obtain work-related injuries. It’s only needed when you go beyond the number of employee limits.
• Property Insurance: Banks require this insurance to hold your mortgages. In case you rent a commercial space, the landlord may require you to get this type of insurance.
• Commercial Umbrella or Excess Liability: This insurance requires vendors you work with to cover more significant losses that may go beyond the limit of your existing insurance policies.
• Commercial Auto Insurance: The state requires businesses operating commercial vehicles to get this insurance.

Extra Coverages

After determining what kind of commercial insurance works for you, check the extra coverages that may give your business more advantages. When you search for commercial insurance in MA, check out these common types of additional coverages.

• Professional Liability: This kind of coverage will take care of your business in case you get sued for business-related mistakes. Professional liability, for example, applies to print companies, architects, doctors, and lawyers.
• Employment Practice Liability: This kind of extra coverage will protect your business in case legal actions come to play. Examples of these legal actions are wrongful termination, discrimination, and harassment.
• Directors and Officers Liability: This will protect the board of directors of the company against work and company-related allegations.

Cost of Commercial Insurance

The cost of commercial insurance will depend on certain factors, such as the business type and level of risk exposure. A king crab business operating in the Bering Sea is riskier compared to the ice shop downtown. To pay less for commercial insurance, you have to minimize your business’ risk exposure.

Insurance agents use an insurance checklist to assess the risks that their clients’ businesses face. This checklist acts as the basis of the coverage that you should purchase. Some items on this checklist include the following:

• Business Type
• Employee Number
• Gross Receipts
• Size of leased or owned properties
• History of claims
• Numbers of Vehicles
• Safety Programs

Now that you know what crucial factors to consider in buying commercial insurance for your Massachusets business, it’s time to look for a reliable insurance provider. Use the checklist provided above to compare policies and coverages offered by different insurance providers.

Your newfound knowledge will not only get you the best policies; it can also protect you and your business’ interests.