Key Factors to Remember Before Acquiring Commercial Insurance in Massachusetts
No matter how steady a business may be, there will still be unforeseen calamities and emergencies that can threaten its operations and income flow. After the deadly pandemic left several establishments impaired and on the brink of bankruptcy, some commercial property owners and aspiring entrepreneurs considered it as a wake-up call.
Not even the bustling state of Massachusetts emerged unscathed from COVID-19’s onslaught. Known for beautiful tourist attractions, such as Salem’s Historic Homes, the Freedom Trail, the Cape Cod Beaches, as well as dozens of coffee shops that brew the finest cups of coffee in town, The Bay State has seen one of the highest numbers of COVID-19 deaths in the US.
On June 22, the said state resumed operations for its dining establishments. Albeit the slow-paced re-opening of restaurants and diners, it meant recovery and hope for both business owners and residents.
Preparedness is crucial in keeping businesses and transactions afloat amid a global crisis.
Some viable references on the different types of business-related insurances, such as https://www.lopriore.com/commercial-insurance-massachusetts/landlord-insurance/, emphasize how preparedness entails arranging legal documents and bonds in advance, such as commercial insurance. Commercial insurance, or, in a broader sense, general liability insurance, is a policy to cover the most common risks entailed in owning and leasing a commercial property. It protects property owners from a broad range of expenses and losses caused by the tenants renting a specific unit, legal complaints raised by a tenant’s customers, natural calamities, or economic catastrophe.
There are essential factors that must be considered when acquiring insurance for commercial property or establishment in Massachusetts:
1. Worker’s Compensation Insurance and Commercial Auto Insurance
Worker’s Compensation Insurance provides coverage for injuries, illnesses, and other medical assistance required by the employees. It is a must-have, regardless of whether the business or commercial property consists of a large or small number of workers. On the other hand, Commercial Auto Insurance is required for business-owned cars or automobiles. It applies to both commercial and personal vehicles in Massachusetts that are used in accomplishing various operations involved in a commercial space.
2. Business Size
Generally, the smaller the size of the business, the less amount of insurance coverage is needed. But, if commercial property houses businesses involved in high-risk or hazardous materials and operations, then a higher amount of coverage is required. This helps protect the property owner, the business, staff, properties, as well as the customers.
3. Scope of coverage
Aside from commercial insurance, there are also other types of insurance that entrepreneurs and commercial property owners can use. Insurance can provide protection and financial backing for several factors, such as injuries caused by accidents, legal disputes, copyright infringement, income loss, delayed payments or rental fees, and property damage. Understanding how an insurance policy can benefit a business or property will make it easier to determine or plan which policies to apply for.
4. Minimum requirements for business insurance
Insurance will provide additional support to both startups and more established businesses. In Massachusetts, the premium costs for commercial liability insurance are measured based on a business’s record regarding previous claims. The nature of the services and types of products, along with the size of the workforce, are also considered. In this manner, the policies and costs are appropriately aligned with where the business stands economically and operationally.
Insurance for enterprises and commercial properties is a highly technical and essential aspect of starting and sustaining a business. Aside from checking sources like https://www.lopriore.com/commercial-insurance-massachusetts/landlord-insurance/, you can also ask your local insurance expert for additional information on the policies for your commercial property.