Small businesses may not have the same risk exposure as larger companies, but they’re hardly free from any risks at all. Most small businesses face at least a few potential perils that they need protection from. Small business insurance offers Massachusetts small businesses a way to protect themselves from some of the risks that they do face.
“Small business insurance” isn’t necessarily a technical term. Instead, it’s a phrase used to describe many different types of commercial insurance that are helpful to certain small businesses.
Most Massachusetts small businesses can benefit from having insurance. In some situations, small businesses may be legally required to purchase specific types of insurance. Other times, carrying adequate coverage is simply wise so that a business is protected from covered disasters.
The risk profiles of small businesses vary a lot, so insurance companies offer many different insurance solutions to meet businesses’ different needs. Among the many options available are both individual policies and package policies.
The range of individual policies encompasses everything from the common general liability policy to the less frequently needed contractors and builders risk policy. A few individual policies that are businesses frequently purchase include:
General Liability Insurance, which might cover common accidents
Commercial Property Insurance, which might cover buildings a business owns
Commercial Auto Insurance, which might cover cars or trucks a business owns
Business Interruption Insurance, which might cover certain revenue interruptions
Professional Liability Insurance, which might cover errors made by professionals
Directors and Officers Insurance, which might cover mistakes made by organization leaders
Inland Marine Insurance, which might cover equipment while it’s in transit
Workers Compensation Insurance, which might cover workplace injuries and illnesses
The two types of package policies available are primarily:
Business Owners Policies, which tend to offer basic protections for businesses with traditional insurance needs
Commercial Package Policies, which tend to offer more flexible protections for businesses with particular needs
In addition to these, there are many industry-specific insurance policies. Malpractice insurance, attorney insurance, light manufacturing insurance, office insurance, auto repair shop insurance, microbrewery insurance, restaurant insurance and landscaping insurance are just some of the many options available.
Small businesses that have employees generally have to get workers compensation coverage per Massachusetts law. Businesses that protect their employees from work-related injuries or illnesses in this way may face fines and lawsuits.
In some cases, businesses that don’t have employees might still want to get workers compensation coverage for any business owners who are involved in the business’ regular operations. Health insurance policies often don’t cover on-the-job injuries, and business owners who need coverage may find that they need workers compensation coverage if they want protection.
Small businesses that own vehicle usually need to purchase auto insurance for the vehicles they own, and most insurance companies only offer commercial auto policies (as opposed to personal auto policies) for commercial vehicles.
Sometimes, business owners that use their personal vehicles for business-related driving also need commercial auto coverage. Business owners in this situation should talk with an insurance agent who’s well versed in personal and commercial insurance policies to find out whether their personal policy is sufficient or they need to upgrade with a commercial one.
For help finding small business insurance coverage that’s right for your specific business, contact the independent insurance agents at The Feingold Companies. Our team can show you options from multiple insurance companies in Massachusetts, and they have the expertise necessary to help you find the best solution.