Small Business Insurance Massachusetts

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Massachusetts is home to more than 1.5 million small businesses that account for almost half of all workers in the state.1 All of these Massachusetts companies need business insurance to keep their livelihood and employees safe.

Massachusetts business insurance allows you to financially prepare for unexpected events. It can protect you by helping to cover costs when things go wrong, such as if:

  • A non-employee says you’re responsible for injuries or property damage
  • Someone claims that you made a business mistake that caused financial losses
  • An employee gets hurt one the job
  • You or your employees have a business-related auto accident

NEXT is 100% dedicated to small business and insures more than 1,300 types of small businesses and self-employed workers. We make it easy for you to get the right coverage at the right price and purchase your policy online in less than 10 minutes.

Continue reading to learn about important types of business insurance in Massachusetts. Or get a free instant quote to see customized coverage options for your business.

Small business insurance in Massachusetts

Business insurance usually involves a package of different types of coverage, which insurance carriers call policies.

A business insurance package in the Bay State may include some combination of:

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More details on Massachusetts business insurance types

Whether you’re a registered architect in Boston or a restaurant owner in Scituate, your business insurance requirements are unique. Insurance providers may recommend one or more of the following types of coverage to keep you and you safe.
General Liability
Massachusetts General Liability insurance

Business insurance in Massachusetts often includes general liability coverage, also known as commercial general liability. Many landlords require this important type of policy before they will offer your company a lease.

General liability can help protect your business if someone other than an employee claims that your actions caused injury or property damage. It can help to pay for lawyer fees, court costs and settlement damages if your company is sued.

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

The agent’s general liability insurance could help cover the doctor’s bills, even if the agent is not at fault for the accident.

Workers Compensation
Workers’ Compensation insurance

Massachusetts requires almost all businesses with employees to carry workers’ compensation insurance. This kind of coverage can help cover medical bills, physical rehab costs and lost wages after an employee is injured in the workplace.

Workers’ comp coverage could help protect a small business in a situation such as this:

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 could help cover the carpenter’s lost wages during recovery and pay his medical bills related to the injury.

Commercial Auto
Commercial Auto insurance

Personal auto insurance won’t pay for damages if someone has an accident in a company-owned car. That’s why businesses that own vehicles need the protection of commercial auto insurance. It can help pay for damages if you or your employees have an accident while driving for work purposes.

For example, the owner of a house cleaning company in Cambridge totals a company van, injuring himself and several other drivers. Commercial auto insurance could help cover the injured parties’ medical expenses and pay for vehicle damages.

If your business asks employees to drive their own vehicles for business or rent cars, there’s add-on coverage for such situations. It’s an optional and called hired and non-owned auto insurance.

Commercial Property
Commercial Property insurance

Massachusetts commercial property insurance can help pay for damaged or destroyed business property after a covered event, such as water, fire or wind damage.

For instance, a power surge fries the refrigerator in a Pittsfield restaurant and all the perishable goods go bad. Commercial property coverage could help pay to repair the fridge and replace the food inventory that spoiled.

It’s important to read your policy documents carefully to make sure there aren’t exclusions for your business. Some locations prone to flooding or hurricane damage might have limited coverage.

Errors & Omissions
Professional Liability (E&O) insurance

If someone says that your company made a professional error, missed a deadline or delivered incomplete work, you could be held liable in court.

Professional liability insurance can help cover expenses associated with allegations of professional negligence, including court costs, attorney fees and damages. This type of coverage is also known as errors and omissions insurance.

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

A self-employed photographer is hired to shoot a wedding in Worcester 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 could help reimburse the client for the mistake. Or, if the client sued, it could help pay for the photographer’s legal defense.

How much does business insurance in Massachusetts cost?

How much does business insurance in Massachusetts cost?

Your business insurance costs will be dependent on your business operations. There are several factors that will affect the price you pay for coverage in Massachusetts, which include:

Your company’s exposure to risk

Expect to pay more for coverage if you own a business that is more prone to injuries. For example, auto body repair shops are places where bodily injury and property damage can happen. Their coverage often costs more than that of professional services workers like accountants.

The number of employees you have

Companies with larger employee numbers will spend more on workers’ compensation coverage each month than those with fewer staff members. To get the most accurate insurance quote, be sure to use your exact employee count.

The policies you choose

Business insurance will cost more as you add policies to your coverage package. Most businesses need more than one type of policy to protect them in different situations.

The best way to explore coverage options and find out how much you’ll pay for a business insurance policy is to get a free instant quote from NEXT.

You can also use our insurance calculators for a general estimate of insurance costs in Massachusetts:

How NEXT can help you with business insurance in Massachusetts

How NEXT can help you with business insurance in Massachusetts

We offer a fast and easy way for small business owners to get a business insurance quote online, purchase coverage and instantly share a certificate of insurance. The entire process usually takes less than 10 minutes.

You can also chat with our U.S.–based NEXT licensed insurance agents if you need help or have questions.

Helpful resources for small businesses and sole proprietors in Massachusetts

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* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
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Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.

Any starting prices or premiums represented before an actual customer quote are not guaranteed and are representations of existing premiums of active policies as of December 6, 2023. To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.