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If you have a small business in Massachusetts, you may have heard of an insurance package insurers call “small business insurance.” This often includes a combination of coverages sold as one contract. Small business insurance is a type of commercial insurance, which functions to protect a business’s property, assets, and income.
Are you weighing the pros and cons of this investment? We’ll cover the basics of small business insurance — including what they cover and how they can help you — so small businesses in Massachusetts can find the right solution for their company.
What Does Small Business Insurance Cover?
Generally, small business insurance protects business owners against unexpected, covered perils and financial losses. These may include lightning incidents, theft, fire, and falling debris — but these depend on the kind of insurance policy you’ve obtained for your business.
Below are some of the policies that are typically included in a small business insurance package:
Liability Insurance
Since an enterprise can be sued, aggrieved customers who experienced harm as a result of the business’s hazardous environment, error in service, or defective product can file a suit against your small business. Liability insurance pays for the damages the business is liable for, including legal defense expenses such as attorney’s fees. Medical bills are also covered under this insurance.
Property Insurance
This covers the property used for business operations if it is either damaged or lost due to unexpected perils such as a fire or a robbery. This includes not only the structure but also the items inside it that are necessary for the nature of the business, like stock or a cash register.
Workers Compensation Insurance
Otherwise known as workers comp, this kind of insurance covers the lost wages and medical care of employees who encounter injuries in the course of their employment. This coverage is given regardless of who was at fault for said injuries.
Business Auto Insurance
Auto insurance provides coverage for vehicles owned by a business. If the business is held liable for property damage or a bodily injury afflicted while an employee was driving a company vehicle, this will cover the damages.
Why is Small Business Insurance Important?
Aside from certain instances wherein getting business insurance is mandatory, some clients may also require insurance before signing individual contracts. Plus, there are unforeseen incidents that could severely rattle your business’s financial foundation if you have to pay out of pocket for them; small business insurance can protect your business from going under unexpectedly.
One such unexpected incident could be a workplace accident. You wouldn’t want to pay tens of thousands of dollars from your pocket to cover your workers’ medical bills or lost wages — this could lead to the financial ruin of your business. Other examples include natural disasters, fires, or robberies. If these happen, your insurance can cover the repairs and replacements without ruining you financially.
Finally, you have to consider legal suits. As your business grows, your business could be sued by an employee or customer for any reason. Being sued without insurance can cost a lot of money and lead to the downfall of your business.
Get Small Business Insurance Today
Now that you understand how small business insurance and its policies work, don’t hesitate to find the right bundle for your small business in Massachusetts. Contact us today!
