What Should You Know About Business Insurance in MA?
Businesses face different kinds of risks, including damage due to natural disasters. A natural disaster can damage the physical assets of a company causing losses and disruptions to business operations. Some unforeseen and unfortunate events can cause businesses substantial financial losses. In that case, the company will need financial help to get back to its original standing.
What is business insurance?
Business insurance helps you cover expenses and costs related to liability claims and property damage. Without the right business insurance coverage, business owners have to pay for damages and rebuild the business. This article discusses the important aspects of business insurance that can help you get the right coverage.
Types of Business Insurance
According to the latest Federal data, Massachusetts is home to 599,389 small businesses. Of these 599,389 small businesses, 424,172 don’t have any employees, while 175,217 small businesses employ people.
There are different kinds of business insurance in MA that include
- General Liability Insurance
- Professional Liability Insurance
- Workers Compensation Insurance
These insurance plans offer different kinds of coverage. You need to select a business insurance plan that meets your requirements.
Find the Risks Involved
According to the latest report, Massachusetts stands at 5th position in natural disasters in the United States. The state faces enormous losses in property damage every year as different kinds of natural calamities strike it. Storms, blizzards, ice storms, and heavy rain lash various parts of the state, causing flash floods and damaging property.
If your business is located in Massachusetts, you need to ascertain the different risks involved in running your business in the state. You need to assess various business areas that might get affected by natural calamities and get an idea of what kind of coverage you need.
The company offering business insurance in MA will determine if you need partial or total insurance coverage to rebuild your business after it suffers damages due to natural calamities.
Get Coverage for Valuables
According to FEMA data, 53 natural disasters have been recorded in Massachusetts since 1953. When it comes to storms, heavy rains, and earthquakes, some US states are more prone to the calamities than others. Hence, your business needs adequate insurance coverage for valuables.
The list of valuables for a business includes your furniture, tools, equipment, etc. Some of the items in the list might be covered under general liability insurance in damage to property. However, you need to ensure valuable items in your office are included in the coverage.
If your office has expensive artwork, you need to get separate insurance coverage for it. Ensure the insurance coverage also includes glass and money in the office as it is not part of general liability insurance.
Factors that Affect Business Insurance Costs.
Massachusetts laws define minimum business insurance coverage as follows.
- The minimum bodily injury liability is set to $20,000 per person.
- The damage limit per accident is set to $40,000
- The property damage liability is set to $5000 per accident.
- The uninsured motorist coverage limit is set to $20,000 per person.
- The personal injury protection limit is set to $8000
According to survey findings, a small business in Massachusetts is expected to pay around $300 to $5000 per year for business insurance coverage. The business insurance costs depend on factors like the industry and the risks involved, number of employees, location, and coverage limits.
Opt for Self Coverage
While purchasing business insurance, many entrepreneurs forget to take insurance coverage for themselves. They tend to forge a business organization that cannot function without their leadership. It is particular to businesses that do not have any employees and are run by a sole proprietor.
The owner of the business is an essential asset to the company and hence needs adequate coverage. You can opt for a medical cover or personal accident cover that will award you compensation in the event of sickness or accident.
Get Sufficient Insurance Coverage
Many business owners purchase business insurance but fail to check whether the insurance is enough to cover expenses and costs in case of damage to assets. They provide a wrong estimate of the valuables and the critical business assets leading to insufficient insurance coverage.
Giving the right estimate of the business assets is the key to run a profitable business and get adequate compensation in case of damage. Moreover, business leaders reevaluate the value of insured assets periodically to ensure they are not underinsured. When taking insurance, you need to consider costs when you will not operate a business for a certain period after a natural disaster.
To sum up, you need to focus on the factors mentioned above when purchasing business insurance in Massachusetts.