Massachusetts Commercial Property Insurance

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Written by Candace Jenkins
Written by Candace Jenkins

Candace Jenkins is a licensed insurance advisor with over a decade of experience. She is also a writer and loves to write on all things insurance. Candace writes for on a continuous basis and is here with the facts about all your insurance inquiries.

Reviewer: Jeffrey Green Reviewed by Jeffrey Green
Reviewer: Jeffrey Green
Reviewed by Jeffrey Green

Jeff Green has held a variety of sales and management roles at life insurance companies, Wall street firms, and distribution organizations over his 40-year career.  He was previously Finra 7,24,66 registered and held life insurance licenses in multiple states. He is a graduate of Stony Brook University.

Massachusetts Commercial Property Insurance

In Massachusetts, $8,060,079,000 in commercial insurance claims were paid in 2019 alone. There are several coverages your business will want to stay protected. If you're trying to find all the policies you need, commercial property insurance can help.

An independent insurance agent has access to multiple carriers so that you have options. They do the shopping for you, saving you time and premium dollars. Connect with a local expert for coverage details.

What Does Commercial Property Insurance Cover?

In Massachusetts, commercial property insurance can fall into numerous categories. Since there are different types of property, there are different kinds of protection. Take a look at what is covered under a commercial property policy in Massachusetts:

  • Commercial equipment: This can be anything from machinery to forklifts. Coverage will be for actual cash value or replacement cost. A deductible usually applies.
  • Commercial structure: This covers the actual building you own up to the dwelling amount listed. A replacement cost estimator is used to determine how much it would cost to replace or repair your building. Coverage can be for actual cash value, replacement cost, or depreciated value.
  • Commercial belongings: This will cover any business belongings, such as furniture, office supplies, and more. It will be for replacement cost, actual cash value, or depreciated value.  

Commercial Property Insurance Cost

Like other commercial insurance, your costs depend on several moving parts. Every policy is unique and specific to each entity, which means pricing is as well. Check out the risk factors insurance companies use in Massachusetts:

  • Local weather
  • Claims history
  • Type of property insured
  • Square footage
  • Value or replacement cost of property
  • If you rent out the commercial property to others
  • Your insurance score
  • If you have other policies in place

There are also some weather-related risks that you as a business owner should be aware of. These are the top 5 risks in Massachusetts:

  • Severe storms and lightning damage
  • Hurricanes and tropical storms
  • Heavy snow
  • Flooding and water damage
  • Burglary and other property crimes

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How Much Commercial Property Insurance Do I Need?

Each commercial property will be rated individually. With 669,224 small businesses in Massachusetts, the amount of protection is specific to your needs. Take a look at the different types of insurance given to commercial property owners:

  • Replacement cost: This will pay in full for your commercial property's current value at the time of a loss. When you have a claim, it will restore or replace your property to like kind and quality. 
  • Actual cash value: This coverage is equal to replacement cost minus depreciation. If your commercial property is damaged, aged, or has natural wear and tear, this will be subtracted from the replacement cost amount. 
  • Functional replacement cost: This meets between actual cash value and replacement cost. It will replace or repair your commercial property with material that is less costly but just as functional. 

Who Needs Commercial Property Insurance?

If your business owns any form of property, you're likely to need commercial property insurance. Whether it's your belongings, inventory, or structures, they all need coverage. Take a look at a list of who may need commercial property insurance:

  • Business owners
  • Commercial property owners
  • If you have commercial equipment
  • If you have a property titled in a business name

Does Commercial General Liability Insurance Cover Property Damage?

In Massachusetts, your commercial property insurance is different from your general liability coverage. Each covers different areas of a claim, and they both can be on the same policy. Take a look at the facts:

  • General liability insurance: Pays for a lawsuit arising out of bodily injury, property damage, or slander. This is usually the most accessed policy you'll own. 
  • Commercial property insurance: Pays for the replacement or repair of a commercial structure, belongings, or equipment. This does not have its own liability limit but is in addition to your general liability coverage.
  • Commercial package policy: This is just how it sounds, a package. This package will include general liability, commercial property, and more ancillary coverages together in one policy. Typically, lower premiums and more robust coverage options will be included in a commercial package. 

How a Massachusetts Independent Agent Can Help

Your Massachusetts commercial property insurance covers many risk exposures. If you want proper protection for your assets, consider hiring a trained professional. The best part is that a trusted adviser is free to use and comes with a wealth of knowledge.

An independent insurance agent will start by reviewing your policies and then quoting them through several carriers. This gives you options and saves time and money. Connect with a local expert on TrustedChoice for custom coverage today.

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