Massachusetts Business Insurance

While Massachusetts may be one of the smaller-sized U.S states, its dense population is home to 1.5 million small businesses.¹

Business insurance in Massachusetts allows your small company to financially prepare for unexpected events, and some forms of coverage may be mandatory. Insurance helps protect your business if:

• You are accused of injury or property damage
• Someone alleges that you made a work mistake that caused financial losses
• An employee gets hurt at work
• You or an employee has a business-related auto accident

Next Insurance helps more than 1,000 types of small businesses and self-employed workers quickly get the coverage they need online at the best price. We specialize in small business insurance, so we can easily help you find a custom insurance package that is right for you.

Continue reading to find out about the most important types of business insurance in Massachusetts or start a free instant quote to review options for your business.

We offer a quick and simple way for you to get business insurance quotes online, purchase coverage and share your certificate of insurance. The entire process typically takes just a few minutes.

Our team of licensed, U.S.-based advisors can help you if you have any questions. 

Start an instant quote today.

Factors that small business owners in Massachusetts will want to consider when getting an insurance quote include:

• Risks of injury and property damage, including car accidents
• Your industry
• How many people you employ and future hiring plans

Business insurance packages in Massachusetts typically have the following types of coverage:

• General liability insurance, which helps pay for damages if your business is accused of injuring someone or destroying property.
• Workers’ compensation insurance, which helps employees who suffer on-the-job injuries cover medical expenses and lost wages.
• Professional liability insurance, which is also called errors and omissions (E&O) insurance. If a client says that you made a work mistake that caused financial losses, this coverage helps pay for damages and lawsuit costs.
• Commercial auto insurance, which helps cover damages from business-related accidents.

General Liability insurance 

Business insurance in Massachusetts usually includes general liability coverage. Many commercial landlords require this policy before they will offer your company a lease.

This crucial policy protects your business by helping cover for damages if someone says that your actions caused injury or property destruction. If your company is sued, general liability insurance assists with lawyer fees, court costs and settlements.

For instance, a visitor trips over an end table at an open house in Worcester and seeks medical care. The potential homebuyer later claims that the injury resulted from the real estate agent’s negligence.

The agent’s general liability insurance would cover the visitor’s doctor bills up to the policy limits, even if the agent is not at fault for the accident.

General liability insurance for small businesses in Massachusetts might include tools and equipment coverage. This add-on helps construction and cleaning firms pay to replace or repair business gear that is lost, stolen and damaged.

Professional Liability (E&O) insurance 

If someone accuses your company of a professional error, a missed deadline or incomplete work, you could be held liable in court.

Professional liability insurance helps pay for allegations of professional negligence, including court costs, attorney fees and damages. This type of coverage is also known as errors and omissions (E&O) insurance.

Here’s how professional liability insurance might help protect a small business:

A self-employed photographer is hired to shoot a wedding in Boston but accidentally deletes all the pictures. The client requests that the photographer return the $5,000 fee and pay additional damages.

The photographer’s E&O insurance would help reimburse the clients for the mistake. If the client sued, professional liability coverage helps pay for the photographer’s legal defense up to the policy’s limits.

Workers’ Compensation insurance

Massachusetts law requires businesses with employees to carry workers’ compensation insurance.² Although the state allows for exemptions in certain cases, we strongly recommend this form of coverage for any business with staff members.

If an employee gets hurt while during their job, workers’ comp coverage helps cover medical bills, physical rehab costs and lost wages.

Workers’ comp coverage would help protect a small business in the following situation:

An employee at a small carpentry firm in Springfield injures a hand while installing a piece of drywall and can’t work for two weeks. Workers’ compensation insurance would help cover the injured carpenter’s lost wages during recovery, as well as any medical bills related to the job injury.

Commercial Auto insurance

All drivers in Massachusetts must purchase auto insurance that covers a minimum of $40,000 in injury damages.³

Personal auto insurance is unlikely to pay for damages if someone has an accident in a company-owned car. This is why businesses that own vehicles need commercial auto insurance.

For example, the owner of a house cleaning company Cambridge totals a company van, injuring himself and several other drivers. Commercial auto insurance would help cover injured parties’ medical expenses, as well as vehicle damages up to the policy limits.

Small businesses might occasionally ask employees to drive their own vehicles for business or rent cars. In such cases, you’ll need a type of coverage called hired and non-owned auto insurance to help cover accident damages.

How much does business insurance in Massachusetts cost?

Next Insurance customers in Massachusetts pay a median of $41 each month to protect their businesses.

Costs vary based on several considerations, which include:

Your company’s amount of risks. Expect to pay more for coverage if you own a business that has more exposure to injuries. Construction companies spend a median of $49 each month for business insurance in Massachusetts. Nail salon operators, on the other hand, usually pay less than $17 per month.

Your business’s number of workers. Small companies with larger employee numbers will spend more on workers’ compensation coverage each month than those with fewer staff members. Having an exact worker count helps generate the most accurate quote.

The types of coverage you choose. Purchasing minimal coverage and choosing lower deductibles usually means lower monthly insurance costs. However, if you need to file a claim after an accident, it’s likely that you will end up paying more.

Start a quote with Next Insurance today to explore coverage options for your business in just a few minutes.

More resources for Massachusetts small businesses and self-employed workers

• Massachusetts Small Business Development Center Network
• Commonwealth of Massachusetts’ small business law webpage
• Greater Boston Chamber of Commerce
• Commonwealth of Massachusetts Division of Insurance

 Sources: 

1. U.S. Small Business Administration
2. Commonwealth of Massachusetts
3. Commonwealth of Massachusetts