From large companies like Mercury Systems to the many small stores and restaurants scattered throughout the town, there are a number of businesses located in Andover, Massachusetts. When disaster strikes, business insurance can help these companies remain profitable by covering the associated costs.
Choosing the right business insurance policies can be complicated, but you do not need to do it alone. Independent agents in Andover can help you build a complete policy package that is both comprehensive and affordable. Find an insurance agent near you to learn more.
Why Is Liability Insurance Important for Businesses in Andover?
Liability insurance is a crucial part of every business insurance policy. It is designed to cover expenses such as court costs, legal fees, and damages if your company is sued for a covered event.
All business insurance policies include, at the very least, commercial general liability insurance (CGL). This standard coverage has a few main coverage components:
- Premises liability insurance: This covers third-party injuries, illnesses, and property damage if they occur due to accidents on your business property.
- Product liability insurance: This covers third-party injuries, illnesses, and property damage if they are caused by defects in products that your business produces, sells, or promotes.
- Advertising liability insurance: This covers your company’s liability risks if you are accused of copyright infringement, false advertising, deceptive pricing, or other advertising mishaps.
CGL is very useful, but it cannot cover your business against all of its liability risks. An independent insurance agent can help you identify any other liability exposures your business may have and can recommend the appropriate policies to cover against them.
The following are examples of some of the many commercial liability insurance products you may want to consider for your Andover business:
- Employment practices liability insurance: This covers lawsuits related to accusations of illegal business practices such as discrimination, harassment, and wrongful termination.
- Cyber liability insurance: This covers against financial losses and liabilities if criminals hack into your computer systems and steal sensitive customer data such as financial information, credit card numbers, social security numbers, or personal data.
- Environmental liability insurance: This covers businesses that use or produce toxic substances. It can pay for cleanup costs and damage if an accident leads to the pollution of the ground, water, or air.
- Commercial vehicle liability insurance: This covers against your company’s increased liability risks in the event that one of your employees causes an accident while driving a business-owned vehicle.
You can learn more about these and many other commercial liability coverage options by consulting a local independent insurance agent.
Does Andover Business Insurance Cover All Your Business Assets?
All business insurance policies include commercial property coverage. This is designed to reimburse your business for loss or damage to your commercially owned property including such things as furniture, outdoor signs, computers, merchandise, inventory, and more.
In Andover, businesses are most likely to experience property loss or damage due to such hazards as accidental fires, theft, severe storms, hurricanes, hail, freezing temperatures, and heavy snows. Fortunately, these hazards are all covered by commercial property insurance.
Sometimes, adding specialized property insurance policies is necessary. Depending on the nature of your business operations, a local insurance agent may recommend supplementing your coverage with:
- Inland marine insurance: This covers portable business property while it is in transit or when it is stored away from your place of business, such as at a worksite or in a warehouse.
- Boiler & machinery insurance: This covers the cost to repair or replace broken-down business equipment and can compensate your business for losses associated with machinery malfunctions.
- Bailee insurance: This covers your customers' property whenever it is in the custody, care, or control of your business. This may be necessary if your company provides repair or maintenance services on expensive property.
- Commercial flood insurance: This is necessary for businesses that are at risk for flooding since commercial property insurance will not cover flood damage. Businesses near the Merrimack River are most at risk, but when hurricanes and severe storms bring heavy rains to the area, flash flooding can occur just about anywhere.
Your insurance agent can help you be sure that all of your business assets are suitably covered, and that your coverage limits are high enough to enable you to rebuild, repair, or replace lost or damaged property as necessary.
How Can Business Interruption Insurance Help Andover Businesses?
Tornadoes are extremely rare in Andover, but this does not mean this risk doesn’t exist. In 1974, an F3 twister touched down just four miles from the Andover city center and caused tens of thousands of dollars’ worth of damage.
Major disasters like structure fires, tornadoes, and hurricanes can do more than just damage your commercial property. They also have the potential to force your business to remain closed for an extended time while repairs are made.
Number of Disasters in Massachusetts
- Number of federally declared disasters in MA since 1953: 54
- Most common reasons for declared disasters: Severe storms, hurricanes and heavy snows
- Average number of tornadoes in MA per year: 1
A closure that lasts for weeks, or even months, can be financially devastating, especially for small businesses that don’t have a lot to fall back on. Business interruption insurance provides a solution to this problem.
Business interruption insurance is designed to provide your company with a continuation of income whenever a covered event leads to a long-term closure. That way, your business can afford to pay regular monthly expenses such as utility payments and loan installments while it is non-operational.
Business interruption insurance isn’t a good fit for every company. Talk to a local independent insurance agent for help determining whether or not a policy is right for your particular business.
Do Andover Businesses Need Workers’ Compensation Insurance?
In Massachusetts, all employers are required by law to cover their full-time and part-time employees with workers’ compensation insurance. This insurance is designed to cover the cost of medical treatment, lost wages, and other expenses related to workplace injuries and occupational illnesses.
There are a few exceptions to the coverage mandate. For example, it is not necessary to insure sole proprietors, LLC members, or corporate partners, though you can cover them if you want to. You also do not need to buy coverage for:
- Domestic servants who work fewer than 16 hours a week
- Real estate agents and brokers
- Salespeople who sell consumer goods and are paid solely through commissions
- Workers who are engaged in interstate or international commerce
Premiums for workers’ compensation are based mainly on the types of jobs your employees do. The higher the risk that your workers will suffer significant injuries, the more it will cost to cover them.
A local independent agent can match you up with an insurance company that specializes in covering businesses in your industry and can ensure that you are paying a competitive price for your coverage.
What about Insurance Products for Employee Benefits Packages?
Human resource professionals have consistently demonstrated that when businesses offer benefits like vacation time, sick time, life insurance and health insurance, they find it easier to attract and retain some of the best and most talented employees.
- Annual amount spent on healthcare coverage by MA businesses: $1,064,684,000
- Average annual cost of health care in MA: $6,379/person or $17,424/family
While it’s true that health insurance is expensive, subsidizing it for your employees can have cost-saving benefits for your company. In addition to enjoying potential tax benefits, your business is likely to deal with less employee turnover.
There are many different healthcare and life insurance products available for you to choose from. This can make it difficult to determine which policies are the best to include in your employee benefits package.
An independent insurance agent can explain the pros and cons of each of your various options so you are able to make an informed decision.
Why Work with an Independent Insurance Agent in Andover, MA?
Every business has specific risks and exposures, and these can vary significantly from one company to the next. That is why insurance companies enable you to fully customize your business insurance coverage.
An independent agent can offer guidance and can help you find the best and most affordable commercial insurance policies to cover your Andover business. Contact an independent insurance agent near you to find out how easy it can be to build a comprehensive business insurance policy package.
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