Chelsea, Massachusetts is located directly across the Mystic River from the city of Boston. It is a small but densely populated industrial city that is experiencing an economic resurgence after years of decline. There are around 2,100 businesses operating in Chelsea. Along with heavy industry, hospitality, waste management services, and healthcare firms are prevalent in Chelsea. If you’re a Chelsea business owner, you’ll want to protect your assets with a comprehensive business insurance plan. A local independent insurance agent can help you identify the unique risks your company faces and can recommend the commercial insurance products you need to cover them.
Liability Insurance for Small Businesses in Chelsea, MA
One of the most important components of any business insurance plan is commercial liability insurance. When you purchase a commercial general liability (CGL) policy, you gain protection from lawsuits and claims of negligence. These types of lawsuits happen when your business is responsible for damage or injuries to third parties.
Even if the claims against you are unfounded, you still have to defend yourself. Any legal defense can be extremely expensive. But with a CGL policy, you can recover. It will reimburse you for court costs, attorney fees, and even any settlements or judgments that you are required to pay to an injured party. A CGL policy has two major coverage components:
- Premises liability insurance: Covers third-party damage, injuries, or illnesses that occur due to an accident on your business property.
- Product liability insurance: Covers third-party damage, injuries, or illnesses caused by a defect in a product your company produces, sells or promotes
CGL policies cover a lot, but not everything. Certain types of liability claims are specifically excluded from general liability coverage. Fortunately, there are several additional types of commercial liability policies available. And in some cases, the additional coverage you need can be added on to your CGL policy with an endorsement. Ask your local independent insurance agent about employment practices liability insurance, environmental liability insurance, and professional liability insurance. You might need more specialized coverage than you realize.
Cyber Liability Insurance for Chelsea Businesses
If a breach of your computer systems leads to identity theft or other privacy concerns for your customers, you’ll probably have to notify your customers of the breach, provide them with credit monitoring services, and undertake extensive public relations efforts to repair your image. What’s more, you’re likely to be sued for additional damages.
- Number of identity theft complaints in Massachusetts per year: 5,116
- Ranked 25th highest for identity theft complaints in the US
- Only 22% of businesses have a cyber/data breach response plan
While policy specifics vary among insurance companies, cyber liability insurance typically pays for legal defense, financial damages to injured parties, and even PR and other expenses related to the incident. Be sure to ask an independent agent about how cyber liability insurance can help you protect your Chelsea business.
Property Insurance for Small Businesses in Chelsea, MA
Commercial property insurance is another basic building block of a comprehensive commercial insurance program. It covers your company’s physical assets, including buildings and office space, merchandise, inventory, tools, machinery, computers, office furnishings, and more when physical damage occurs due to fires, severe weather, theft, vandalism, and other covered causes of loss.
- Number of federally declared disasters in Massachusetts since 1953: 49
- Most common reasons for declared disasters in Massachusetts: Severe Storms and Hurricanes
Major disasters like severe storms and even hurricanes can cause extensive damage to your business property. Talk to your agent about the appropriate coverage limits for your unique business, so you can make repairs or rebuild without taking a major financial hit.
Business Interruption Insurance for Chelsea Businesses
Severe storms, hurricanes, and other unforeseen events can easily damage your building, your suppliers’ buildings, local utilities and more, leaving you unable to operate for some time. A major fire can destroy your entire operation. Even a small fire or heavy smoke can cause widespread damage and force you to close in order to rebuild. If you couldn't afford ongoing expenses during the time you needed to make repairs, would you be forced to close for good?
Business income insurance, or business interruption insurance, reimburses you for lost revenues when your business is unable to operate after a disaster. It pays for certain ongoing expenses and allows your company to stay afloat until you are able to reopen. Business interruption insurance is usually a part of your commercial property policy or a business owners policy (BOP). An independent insurance agent can help you assess your risks and help you get the coverage you need.
Workers’ Compensation Insurance for Chelsea, MA Businesses
Most Massachusetts employers are required to purchase workers’ compensation insurance. It pays for medical care and lost wages for injured workers, and protects employers from being sued for further damages. All employers in Massachusetts with one or more employees are required to carry workers’ compensation insurance for their employees and for themselves if they are an employee of their company, regardless of the number of hours worked or the number of employees. There are a few exceptions:
- Domestic employees must work at least 16 hours per week to be covered under a Massachusetts workers’ compensation policy.
- Members of an LLC, partners, and sole proprietors are not required to purchase workers’ compensation insurance for themselves but may elect to purchase it.
- Any corporate officers who own at least 25% of their corporation may exempt themselves from coverage with a signed affidavit.
Other exceptions to the Massachusetts workers’ compensation law include door-to-door salespeople, professional athletes, real estate agents, seamen, and taxi drivers. Most businesses in Massachusetts purchase workers’ compensation insurance from insurance agents and agencies licensed to sell it in the Commonwealth of Massachusetts. You may be able to obtain discounts and credits when you purchase coverage from a private insurance company.
Employee Benefits for Small Businesses in Chelsea
Most employers choose to offer an employee benefits plan because programs like group health insurance, group life insurance, vacation time, and sick time help attract and retain good employees. While employee benefits are often complex and expensive, they are a necessary part of keeping employees healthy and satisfied.
- Average amount spent per year on healthcare coverage by Massachusetts businesses: $1,061,981
- Ranked 16th for highest medical insurance costs in the US
- Average annual cost of health care in Massachusetts: $6,379/person or $17,424/family
There are many different health and life insurance policy types and options available for you to choose from. A local independent agent can help you find suitable coverage at a competitive price.
Why Work with an Independent Agent in Chelsea?
There is no such thing as a one-size-fits-all business insurance policy. The wide variety of insurance products and options available to business owners allows you to cover your assets against the unique risks you face. Independent insurance agents can help you find the right policy for your needs and budget. Independent agents can work with multiple insurance companies, so you can compare competitive quotes and make an informed choice.
Contact a local agent to get started.