In Massachusetts, $8,060,079,000 in commercial insurance claims were paid in 2019 alone. If you own a company, you'll want adequate protection for the road ahead. A business owners policy can help cover your small business against day-to-day exposures.
An independent insurance agent can find a policy that suits your needs and budget. They work with multiple carriers so that you're properly covered. Connect with a local adviser for custom quotes.
What Is a Business Owners Policy?
In Massachusetts, you'll have several policy options to choose from. In order to have the right protection, comprehensive coverage is necessary. Check out the policy that can get you there:
- Business owners policy (BOP): This will include liability coverage for bodily injury and property damage. Any business property will be included for replacement and repair in this policy.
Business Owners Policy Coverages
BOP insurance is specific to each carrier and business type. Some coverages come standard on most BOPs and are considered automatic. Every company will have its own spin on its coverage offerings. Check out the primary types of protection in a BOP in Massachusetts:
- General liability insurance: Pays for bodily injury or property damage claims where you and your employees are responsible.
- Business interruption: This will pay for regular business expenses when you are temporarily shut down due to a covered loss.
- Commercial property insurance: Pays for building, equipment, and inventory damage from a covered loss.
- Crime insurance: Pays for a claim involving forgery, fraud, or theft to your company.
What Is the Average Cost of a Business Owners Policy?
Every commercial insurance policy will vary in price. A BOP will usually have a lower price point, but your exact costs won't be known until quoted. Here are some factors carriers look at to determine your BOP premium:
- Your business address
- How long you've been in business
- Your gross annual sales
- The type of industry you're in
- If you have any employees
- Business property details
- Prior claims
- Your insurance score
Business Owners Policy vs. Commercial Package Policy
If you own a small business in Massachusetts, the type of policy you'll need will come down to your gross annual sales. Carriers use this to determine whether you need a BOP or a commercial package policy. The differences between these primary policies are shown below:
- BOP: A BOP is plug-and-play. It has a pretty rigid template when it comes to coverage offerings. There is not much flexibility in the limits, and the endorsements are as-is. A BOP is truly for small business owners who don't exceeding a specific gross annual income.
- Commercial package policy: A commercial package policy, or CPP, is more robust. It is designed to tailor coverages exactly how your business needs them. A CPP is usually used for mid- to large-sized companies. You can add and remove coverages as they pertain to your operation. It is a more flexible option for some business owners.
The gross annual income, industry, and type of property you insure will play a big part in which policy is right for your business. A CPP is typically for mid-size to larger companies, but not always. It's important to have a trusted adviser when comparing coverages and policy options.
Business Owners Policy vs. General Liability
In Massachusetts, there are 669,224 small businesses. As your company grows, your insurance needs to grow with it. A general liability policy is standard for most companies, but there comes a point where a more robust approach is necessary. Take a look at the differences below:
- BOP: A BOP is going to provide coverage for your property, business income, and more. It will include general liability in addition to many other coverage options.
- General liability: This policy is on its own. It will give you liability coverage for bodily injury, property damage, or slander. Anything else will have to be added in a separate policy.
How to Find a Massachusetts Independent Agent
If you're looking to insure your business, consider using a trained professional. There are many policy options, and it can be confusing to know what's right for your company. A business owners policy is essential for most small businesses in Massachusetts.
Fortunately, an independent insurance agent can help with coverage for an affordable price. They do the shopping on your behalf so that you get the best rates without wasting time. Connect with a local expert on TrustedChoice to get started today.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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