During previous years, there were 615,775 small businesses, employing 1,404,234 people, based in the state of Massachusetts. Nearly 4,000 of these businesses were headquartered in the city of Gloucester, MA. Businesses in the manufacturing, construction, and retail trade industry sectors are most abundant in this city, but commercial enterprises of all kinds have the potential to thrive here. Whether you own a larger business like Varian Semiconductor, or you do consulting work as an independent contractor, you will want to be sure to protect the investment you have made in your business by purchasing a suitable Gloucester commercial insurance policy.
Consider this: In recent years, businesses in Massachusetts collected $6,530,654 in business insurance claims. Building a commercial insurance policy package that can suitably cover your Gloucester-based business against all of its exposures can be complicated. Fortunately, when you enlist the aid of an independent insurance agent, the job is much easier. These agents can make appropriate coverage recommendations for mitigating your risks and can then work with a variety of insurance companies to gather customized Gloucester commercial insurance quotes. Find an agent near you to learn more.
- According to a recent Travelers Business Risk Summary, 60 percent of small-business owners ranked medical cost inflation as their highest concern and more than 30 percent said they felt unprepared to handle this concern.
- According to a national study, 71 percent of product liability awards by the courts amounted to $1 million or more, so this coverage may be crucial.
- That same national study found that 53 percent of medical malpractice awards by the courts amounted to $1 million or more.
A liability lawsuit filed against your company can lead to large financial losses. Even if the courts rule in your favor, the cost of your legal defense alone could amount to tens of thousands of dollars. Fortunately, you can protect your business by including the right kinds of liability insurance with your Gloucester commercial insurance policy package.
Nearly all policies include general liability insurance, which covers legal defense, court costs, and financial damages for a number of common liability risks. Your independent insurance agent can help you identify any other types of liability coverage (such as employment practices liability or pollution liability) that may be appropriate for your Gloucester business. Talk to your agent to learn more about coverage types such as the following:
- Premises liability insurance: This is one of the main components of your policy’s general liability insurance. It covers your business if an accident on your commercial premises leads to third-party injuries, illnesses or property damage.
- Product liability insurance: This is another component of your policy’s general liability coverage. It covers your business if a product you produce, promote or sell is somehow faulty and causes damage, illness or injury to others.
- Errors and omissions insurance: Professionals in all fields benefit from this professional liability insurance. It covers individuals, rather than your business, against many of the common professional errors they may be held liable for. The most commonly known type of errors and omissions coverage is medical malpractice insurance, but there is professional liability insurance to protect all kinds of professionals, from architects to wedding photographers.
Business Interruption Insurance for Gloucester Small Businesses
- Recent gross domestic product (GDP) for the U.S.: 2.2%
- Recent gross state product (GSP) for Massachusetts: 1.6%
- The recent GDP increase was 0.06% more than the recent GSP increase
Your Gloucester-based business contributes to Massachusetts’ GSP as well as to your local economy. However, a disaster like a hurricane or a structure fire that causes major damage necessitating you to halt business operations for an extended time while repairs are made can significantly affect your business revenues. Make sure that your Gloucester commercial insurance policy includes business interruption insurance so that your company can continue to collect income during the closure. That way, you can continue to pay your monthly expenses and employee salaries. This coverage lasts until you can resume normal business operations, but it is usually limited to 12 months.
Property Insurance for Small Business in Gloucester, MA
- Number of recent natural disasters in the U.S.: 119
- Only 61% of losses from natural disasters were covered; $9.7 billion from damage was not
Catastrophic events can also lead to substantial damage to your company’s property. Fortunately, commercial property insurance covers your business-owned assets, such as merchandise, inventory, computers, tools, machinery, office furniture and outdoor signs. Businesses in different industries often have differing coverage needs. It may, therefore, be advantageous to work with an experienced agent who can recommend appropriate extra property coverage (such as inland marine insurance) when you are building your Gloucester-business insurance coverage.
Be aware that your business insurance probably does not cover damage caused by floods. You should, therefore, be sure to talk to your agent about supplementing your Gloucester business insurance with a commercial flood insurance policy through the National Flood Insurance Program (NFIP).
Workers' Compensation for Gloucester Businesses
In Massachusetts, all businesses that have employees, even if just one, must carry workers' compensation insurance. Exemptions are made only for those who hire domestic help — and only if the help works fewer than 18 hours per week. Workman’s comp (as it is frequently called) provides coverage for medical costs and lost wages related to injuries or illnesses sustained by employees while on the job. It also provides death benefits to an employee’s family in the unfortunate event that work-related injuries or illnesses prove fatal.
Workman’s comp insurance protects your employees and helps your business avoid potential lawsuits related to these workplace injuries. Your agent can help you find an affordable policy that is designed specifically to insure businesses that operate in your particular industry.
Employee Coverages for Small Businesses in Gloucester
- Total recent spending on premiums in Massachusetts: $1,061,981
- Ranked 36th for the highest premiums in the U.S.
- Annual cost of health care for small businesses in recent years: $6,379/person or $17,424/family
The Affordable Care Act of 2010 mandates that all companies with at least 50 full-time employees provide these workers with subsidized health insurance coverage. Even if it is not required of your company, providing your employees with benefits such as health and life insurance can help you attract and retain good workers and has the potential to earn your small business federal tax credits of up to 35 percent of your cost for premiums. If you are interested in looking into these insurance plans for your employees, your agent can help you obtain and review some affordable options.
Cyber Crime Insurance for Gloucester Small Businesses
- Number of identity theft complaints in Massachusetts in recent years: 5,116
- Ranked 25th highest for identity theft complaints in the U.S.
- Only 22% of businesses have a cyber/data breach response plan
A rather new type of liability coverage, cyber crime insurance is becoming essential for many businesses as cases of electronic data theft continue to rise. If you use computers or other electronic means to collect or store sensitive information about your customers, employees or others, this insurance may be an extremely good idea for your Gloucester business. Cyber crime insurance protects your company from large financial losses related to lawsuits that can happen if hackers access your computer system, thereby putting your customers and other individuals at risk for identity theft and fraud. Be sure to speak with your agent to get more information about how cyber crime coverage may be beneficial for your business.
Find the Right Gloucester Commercial Insurance for Your Business
Every business has inherent risks and exposures relative to its location, industry and size and the services provided. When you work with an agent, you will have access to a wealth of information about the many coverage options that are designed to mitigate these risks. You will also have an easy way to compare Gloucester business insurance quotes for policies that have been customized to meet your company’s specific coverage needs. This enables you to easily find appropriate coverage at a competitive price.
Shopping for business insurance on your own can result in your having dangerous coverage gaps or paying unreasonable rates, so let an independent insurance agent help. There are several local agents with offices in Massachusetts, and many are located in and near the city of Gloucester.
Find an agent near you to get started.