Skip to Main Content
Corin Cook

By: Corin Cook on September 19th, 2023

Print/Save as PDF

How to Insure your Massachusetts Business with Confidence

Business Insurance

Starting a business can be scary. And if we’re being honest, it doesn’t get all that much less scary.

But at Berry Insurance, we want you to be able to insure your own business with confidence! Which is exactly what we will be teaching you in this article. 

What makes us qualified to talk about this? Well, first of all, we insure hundreds of businesses of various sizes and industries. But our owner Kaitlyn also teaches classes on this very topic!

That’s right. We actually used the notes from her lesson to put together this article for you.

At the end of it, you will be more confident in insuring your business with the right policies for years to come. 

Why you should insure your Massachusetts business

First of all, you should probably know why insuring your business is important in the first place.

For one, in Massachusetts, you are required to have certain types of business insurance.

It also may be required by your lease, an association or membership your business is a part of, or for business financing.

Also, it’s just smart. Insurance will protect your business assets, employees, and vitality. Without insurance, a large out-of-pocket claim could actually lead to your business’ demise. So you won’t want to take any chances.

How to find the right MA insurance agent

You truly can’t feel confident about your business insurance if you’re not confident about the person handling your business insurance. So you want to make sure you pick the right agency to work with. Here’s how we recommend doing that: 

Ask your family & friends

If you don’t know who to trust with your business insurance, ask someone you already trust! Do you know any family members or friends who are business owners? They might have a recommendation. Don’t know any business owners? Ask your friends and family who they go to for personal insurance. Chances are, if they have a glowing review of their personal insurance agency, that agency probably also does a great job with business insurance.

Google

When selecting an insurance agency, Google is your friend. You should Google some local agencies and read their online reviews. Make sure they have a high star rating, and sound positive and genuine. Also check out some of your local agencies’ websites to find out more information and learn if they may be a match for you.

Find an independent insurance agent

We might be a little biased here, but we also recommend you work with an independent insurance agency. Independent agents work with multiple carriers, so they can shop your insurance around for you and find the best pricing and coverage options.

Go to their office

If you really want to be sure an agency is right for you, visit them in person! Consider their personality, office environment, and staff morale. You can find out a lot about who a company is by seeing them in person.

Ask plenty of questions

The best way to find out if an agency is qualified and right for you is to ask all the questions you would like to know. By covering all your questions and concerns, you can be confident you won’t be getting any unwanted surprises.

Consider asking:

  • How long have they been in the insurance industry?
  • What do they know about your industry? What services do they offer? (Annual review, audit assistance, 24/7 claims support, mobile app, etc.)
  • Who do you call if you have a claim?
  • What carriers do they recommend, and why? Is the carrier financially stable?
  • What’s not covered by the insurance?
  • Are there any restrictions/limitations I should know about?
  • What are my responsibilities with the policy?
  • Will my policies allow my business to grow?

Types of business insurance you may need for your MA business

Since businesses vary so drastically, there are several different types of commercial insurance that can be mixed and matched to fit any type of company. Depending on your business, some of these policies may be required, others may not be required but you will want them, and others you may not need at all.

Liability insurance:

General liability insurance (often referred to as just liability insurance, or business liability insurance) is a type of business insurance policy that covers claims made against your business from someone who experienced bodily injury or property damage (whether you actually were at fault or not). It can also provide coverage for injuries sustained from your product, claims for libel, slander or defamation, and claims filed by your employees or other 3rd-parties.

To learn more about business liability insurance and what it covers, read this article: What is General Liability Insurance?

Business property insurance:

A commercial property insurance policy will cover all of the physical property you have for your business. This includes things such as furniture and equipment, supplies, computers, inventory, customer’s goods, and signage. 

The policy will provide financial reimbursement (subject to your deductible and coverage limits) to help recover the cost of items damaged, lost or destroyed from various incidents.

To learn more about commercial property insurance, check out this article: What is Commercial Property Insurance?

Business auto insurance

Commercial auto insurance provides vehicles registered in the name of the business and the liabilities associated with them.

To learn more about business auto and what it covers, check out this article: What is Commercial Auto Insurance? Do I Need it?

Workers’ compensation

Workers’ compensation insurance covers medical payments and a portion of lost wages for employees who become injured or ill due to work-related causes.

It is required in Massachusetts, and you may even need it if you are a sole proprietor.

Commercial umbrella insurance

Sometimes known as an excess liability policy, commercial umbrella insurance supplements a business’ existing general liability insurance, commercial auto insurance, and workers compensation insurance. If a large claim exhausts your underlying coverage, your business umbrella insurance will cover the rest, up to the limit you choose. 

In addition, a commercial umbrella policy will cover the legal fees you incur while defending or settling your lawsuit. And in some cases, it may even provide coverage you did not have with your underlying policies.

To learn more, read this article: What is Commercial Umbrella Insurance?

Professional liability insurance 

Professional liability insurance (also known as errors and omissions insurance) covers claims made against your business as a result of the services you provide. Examples of these claims could be for negligence, misrepresentation or even inaccurate advice.

To learn more about what professional liability insurance covers, read: What is Professional Liability Insurance?

Directors and officers insurance

This coverage protects against claims made (i.e. lawsuit) as a result of what a director/officer of the company did or did not do. It is common in condo associations, non-profits, or any business with a designated board of directors.

Employment practices liability insurance

EPLI is a type of insurance policy protecting businesses from claims they violated the rights of their employees.

To learn more about the coverage, check out this article: Does my Business Insurance Cover me for HR Issues (What to Know About EPLI)

Employee Dishonesty/Theft/Bonding

This coverage protects against financial loss due to fraudulent activities of employees.

Business Income/Interruption

Business interruption insurance provides reimbursement if businesses are unable to operate due to some sort of disaster.

Commercial flood insurance

Flood insurance covers damage to your business property caused by flooding (which is not covered under regular property insurance.

Commercial earthquake insurance

Earthquake insurance covers damage to your business property caused by earthquakes (which is not covered under regular property insurance).

Builders Risk

Also known as “course of construction" insurance, builder's risk insurance protects the contractor or property owner from financial loss resulting from damage or loss of the project’s structure and materials during the course of construction.

To learn more about builders risk insurance, read: Do I Need Builders Risk Coverage?

Cyber Liability/Data Breach

Cyber insurance covers costs associated with a cyber attack or data breach. 

This includes malicious actions such as hacking, viruses, phishing, denial of service (DoS) ransomware, malware and more; but also data losses from incidents such as computer glitches, power surges, and accidental deletions.

To learn more, check out this article: What is Cyber Insurance and Do I Need it?

Benefits Insurance: 

There are also some benefits insurance you could get, including life insurance, medical insurance, disability insurance, or key man life insurance.

Special Event Insurance:

If your company is throwing an opening party or other large function with guests, you may need additional coverage through additional special event insurance to cover any potential financial losses or risks. 

What you will need for a Massachusetts business insurance quote

During your quote call, your insurance agent will need to collect a variety of information from you. This may include.

  • Business Details
  • Prior Experience and Insurance History (if applicable)
  • Current risk management strategies
  • Exposures you wish to insure 
  • Contracts/Agreements you’ve entered into

For more detailed information about what you need to get a quote, download this worksheet, which will help you compile all the information you will need for the quoting process.

Business Insurance Worksheet Download

 

Ways to save on your MA business insurance

Business insurance can be costly depending on the policies you get. But don’t worry, there are some ways to save that you should consider before applying.

Write a resume of experience

Showing your experience will make an insurance company more comfortable insuring your business. This may mean that they'll give you credit for your experience instead of rating you as a brand new operation.

Pay attention to marketing/bee careful what you say online

Being careful how you market your business and what you say online is important so you don't get charged for exposures that you don't actually do. Sometimes businesses add things in for keywords, searching results, but they don't actually do these things. Insurance carriers will look at your website and charge for what they see you doing.

Reduce exposure to risk

When being quoted for insurance, the insurance company will evaluate your risks to help determine your limits and cost, so it may help to reduce some of those risks before quoting. This could include installing security systems, updating utilities and sprinklers, establishing contracts to transfer risk, implementing a cyber security plan, maintaining the premises, performing background checks and MVR checks, training employees, creating a disaster plan, and keeping an updated employee handbook.

Bundle policies with one company/agency

One of the easiest and most effective ways to save money on your insurance policies is to bundle them with one carrier.

You see, insurance companies want more business, so as an incentive, they offer multi-policy discounts for the more policies you place with them.

Depending on the types of policies you are bundling, you can save anywhere from 5% to 25% of your total insurance cost.

Choose higher deductibles

If you want to save money, you can consider raising your business insurance deductibles, which will lower your premium.

Of course, if you have a situation resulting in a claim, you will have to pay more out of pocket, but it may make sense to take that chance if it means saving money during this time.

Enroll in EFT to eliminate billing/service fees

Paying for your insurance through electronic funds transfer (EFT), automated clearing house (ACH), or paying the premium up front can eliminate billing fees.

If you’re comfortable with your payment automatically withdrawing from your bank account each month, or if you can afford to front the entire premium, these methods can save you both time and money.

Understand your MA workers’ compensation policy

Not properly managing your workers’ compensation policy throughout the year could actually cost you more money. Make sure you understand your classification rules, credit eligibility, certificates of insurance for subcontractors, and payroll deduct.

If you want to prepare for your annual audit in advance, check out this article: 5 Steps to get Through Your Workers Comp Audit

Schedule an annual review (at a minimum)

Reviewing your current business circumstances will help your insurance agent or carrier make sure you are paying the right price for your coverage.

There may also be some discount opportunities available, so during your annual review, your agent can make sure you are taking advantage of all savings opportunities.

For more information, check out the article: Why You Should Review Your Commercial Insurance Annually

Confidently move forward with the right agency

Before jumping into business insurance policies, there are several steps you should take to make sure you get the insurance that’s right for you.

Between vetting agencies, deciding the coverages and limits you need, preparing for a quote, and making sure you aren’t spending too much, you’ll want to think things through and be prepared for the sake of your business’ future.

Ready to start that process? We suggest you begin by reading this article: What to Look For when Selecting an Insurance Agency or Company, so you know the right type of insurance companies to reach out to.