Massachusetts is one of the most populous states in the northeastern region of the U.S. It is also a global leader in engineering, biotechnology, finance, higher education, and maritime trade.
According to the current federal data, there are about 599,389 small businesses in Massachusetts. Of them, only 175,217 businesses have employees, and the remaining 424,172 small businesses have no employees. Small business insurance Massachusetts is a must when operating a start-up or small-scale enterprise. It helps in preventing the losses that you may incur due to unforeseen circumstances.
The Division of Insurance, a part of OCABR, regulates the insurance industry and protects the consumers. If you run or are about to start a business, small-scale business insurance won’t just protect you from the contingent liabilities but will also save you from going bankrupt. However, before buying one, you need to ask the following questions to get a suitable insurance policy.
What are the Risks Involved in your Business?
Small businesses like customized tour services and digital marketing agencies are the major contributors to Massachusetts’s economy. It will be straightforward for you to buy suitable business insurance when you have a clear picture of your business size, how you operate it, the number of staff hired, and the list of suppliers.
Also, the cost of the machinery, set of equipment, and other assets can be a vital factor when considering to buy business insurance. Once you have answers to these vital questions, you will be able to compare the insurance company’s policy offers.
Which Type of Insurance to Pick?
According to Massachusetts law, every business must carry workers’ compensation no matter how many hours they work. Though buying business insurance is not mandatory as per M.A. laws, it is highly recommended. So, before you select the business insurance policy, research on which policy offers the maximum coverage.
There are different types of small business insurance policies like public liability insurance, data breach insurance, commercial flood insurance, professional indemnity insurance, cyber liability insurance, tax audit insurance, management liability insurance, accidental insurance, surety and fidelity bonds, and home-based business insurance. Hire the best business insurance advisor and get detailed information on different types of business insurance policies.
How Much Coverage Do You Need?
Due to the COVID-19 crisis, many small businesses have suffered losses in Massachusetts. According to statistics, more than 60% of the state’s businesses have gone bankrupt and are struggling for survival. For preventing such damage to your business, it is advisable to understand how much insurance coverage you require to minimize the loss due to uncertainties.
Although there is no fixed answer on how much coverage will mitigate the losses, your insurance advisor and a proper calculation about your investment can help you determine the coverage amount.
What are the Terms and Conditions?
Restaurants, take-away outlets, tourism services, hospitality services, and repair services are the worst-hit industries in Massachusetts due to pandemic. So, before you finalize on a business insurance policy, you must thoroughly read the terms and conditions. It will help you prevent unwanted losses in the future and not burn a hole in your pocket.
The small business insurance Massachusetts comes with a disclosure statement that includes exclusions, extensions, and additional coverages. It means there could be conditions specifying which type of loss can be covered and cannot be covered depending on the incident. It is necessary to understand the terms of the policy before buying it. If you are not aware of what is included and excluded, you may end up paying unnecessarily.