The Chicopee area offers opportunities for businesses of all types and sizes, including businesses in the tourist trade in and around the Berkshires and the high-tech industry in western Massachusetts. The small-town feel and very mild weather make Chicopee, MA a great place to set up businesses of all kinds. With all these advantages, it’s critical to have the right insurance for any business, large or small, even with the great small business climate in Massachusetts. Consider these statistics:
- During previous years, there were 615,775 small businesses in the state.
- They employed 1,404,234 people.
- Their total liability claims were $6,530,654 in losses.
Your business needs insurance to cover unforeseen circumstances such as fires or water pipe breaks. The kinds of insurance you need, some of which are required by law, can be complicated and hard to navigate. The best way to find the Chicopee commercial insurance that you need is to develop a relationship with your Independent Insurance Agent. These agents know the laws and options particular to insurance coverage, and once they get to know your business, they can recommend the right insurance so that you can rest easy knowing that all eventualities are covered.
The foundation of good business insurance is coverage for general liability. This is protection for any injuries or other events on your property whether to customers, visitors or delivery personnel. It’s important because the liability you assume just by having your doors open every day is nearly unlimited. An injury on your premises can be extremely expensive, and if you are sued to cover the costs, you need to have representation in court.
This is a critical concern for businesses large and small. A recent Travelers Business Risk summary found that 60 percent of businesses said medical cost inflation was their biggest concern, with over 30 percent saying they were unprepared to handle this risk. When something happens, insurance to cover these liabilities is critical. If you make a product or provide a personal service, you need to have product liability or professional liability insurance. This covers any injury resulting from your product or service for any reason in the same way general liability covers incidents on your property.
The Insurance Information Institute found that 71 percent of product liability awards and 53 percent of medical malpractice awards in recent years were for $1 million or higher. Covering these types of costs is why you need good liability insurance for your property and your products and services.
Business Interruption Insurance for Chicopee Businesses
There are many reasons you might not be able to open up on any given day. Interruptions in power that span many days, such as from a storm, can be very costly. In the case of water damage from a broken pipe or a fire, you may not be able to operate for a period of time. Business interruption insurance takes care of this for you. It pays out based on the revenue that you weren’t able to collect when closed, taken from the receipts you had when you were open. It covers the ongoing costs as well, such as power and employee benefits, until you are back on your feet and operating again.
Property Insurance for Chicopee Businesses
When an unforeseen disaster strikes, it’s critical to get you back up and operating as quickly as possible. While it may seem like a good idea to select the cheapest property insurance, you may regret that later. A carrier that pays out quickly without a lot of red tape is critical when you want to get back in business after a major event. There were 119 natural disasters across the U.S. in recent years, but only 61 percent of the resulting damage was covered by insurance. A total of $9.7 billion in losses had to be covered by the business owners themselves, a big burden for small businesses.
Your Chicopee-based Independent Agent can help you find the right insurance because agents are based right here in town. They know which carriers can be counted on when something terrible happens. You have enough to worry about when disaster strikes, so the right insurance for your business can make all the difference.
Workers' Compensation for Chicopee Businesses
State law requires every business with employees to carry workers' compensation coverage, typically known as “workman’s comp.” It pays out to an employee who is injured on the job and cannot work for some time, regardless of whether that injury is from a one-time event or from repetitive stress. These are some statistics from recent years:
- Workman’s comp paid out $1.27 for every $100 in wages.
- That’s an average of $612 per employee.
Your assessment for workman’s comp is based on the employees you have and the type of work they do. If you have a record of your employees' claims, the cost is based on that history. New businesses are charged based on schedules from similar businesses in Western Massachusetts. There is a lot you can do to keep your workman’s comp costs down. Some carriers give you credit for ergonomic equipment and employee training, which reduce injuries on the job.
Employee Coverage for Chicopee Businesses
During previous years, Massachusetts-based businesses paid $1,061,981 for employee health care coverage. The average health plan cost was $6,379 for a single person health plan and $17,424 for a family plan. Both of these are very close to the national average. Coverage for health care is only part of the package of insurances that you may want to offer your employee, however:
- Health plan insurance: This is required by law for companies with 50 or more employees, but many smaller businesses opt to provide this coverage as a service for their loyal workers.
- Life insurance: You may want to cover your employee, as well as protect the family, in case something happens to the employee.
- Disability insurance: Similar to life insurance, this pays out when an employee cannot work anymore for any reason.
A good employee coverage plan helps you to retain valuable workers, cutting down on training and improving service. Many Chicopee area businesses offer packages for their employees so that they stay loyal and are always at the best on the job.
Cyber Crime Insurance for Chicopee Businesses
With all the kinds of insurance that your business needs, there are always a few liabilities that you may not even think of. As one example, identity theft and other cyber crimes can leave you with nearly unlimited liability – limited only by your available credit. While not very common in Massachusetts, identity theft does happen.
There were 5,116 incidents reported in recent years. Policies are available at surprisingly good rates, assuming you take a few precautions of your own and work with your insurance carrier. The types of insurance your business may need can cause a terrible headache if you try to navigate the choices on your own. It’s best to get expert help. Your Independent Agent can help you find the coverage you need to protect the business you work so hard to build.
Talk to an agent today to be sure that you have the business insurance that fits your needs at a price you can afford.