With a variety of insurance products, businesses in Massachusetts have the ability to shield themselves from potential harm when a fire, accident, or other loss occurs. However, for many small and medium-sized businesses, the process of obtaining comprehensive coverage may be complex. With a business owners policy, your qualifying business may be able to combine the most common insurance policies into a convenient and affordable package.
Even though your business is unique, it may face common risks. For a Massachusetts business that has a standard risk profile, a business owners policy (BOP) may be able to simplify the insurance process. These packages combine standard protections with optional customization, often for less than buying each policy individually.
The two most common types of business insurance are property insurance and general liability coverage. Because most businesses need these basic protections, they are almost always included in a basic BOP.
Property insurance helps to cover your business property including office space, equipment, tools, furniture, and other items. Covered events can include common situations like fire, theft, storm damage, and vandalism.
General liability coverage can protect your business if you are sued for bodily injury that occurs on your property, or for injury or damage that occurs due to your business’s actions. It can cover medical payments, legal fees, and settlements.
Most BOPs also include business interruption insurance to help cover lost income if you have to temporarily close your business due to a covered event.
In addition to the standard policies, BOPs can often be customized to the risks specific to your industry or location. By adding additional coverage to the package, you are extending your insurance coverage while still enjoying the benefits of package pricing. The specific policies you can include vary based on the insurance carrier. Your options may include:
Many carriers have pre-designed packages for specific industries. Discuss with your agent what BOP may be right for your business.
Though BOPs may be a convenient and affordable way for small and medium businesses to obtain comprehensive insurance protection, there are certain policies that cannot be included, and may be required by law for you to purchase.
Workers compensation insurance is required in MA for all businesses that have employees. Despite this being necessary coverage, it cannot be included in your BOP. Similarly, commercial auto coverage is required if you own or operate vehicles as part of your business, but must be purchased separately.
Insurance doesn’t have to be complicated to be effective. With a BOP, you can combine the most used coverages into a convenient and affordable package, and then further customize it to your specific needs. For businesses that qualify for these package polices, a BOP may be able to simplify the insurance process.