What does Commercial Property cover in Massachusetts?
Massachusetts commercial property insurance can help cover the physical assets you use while running your business.
When certain types of accidents or emergencies affect your assets, you may be able to submit a claim to get help paying for replacements or repairs.
The following are some examples of how commercial property insurance can help your Massachusetts business:
- Structure fire: This insurance can help cover the cost of repairs and replacements if a fire breaks out at your business.
- Water damage: Commercial property insurance can help pay to fix water damage from burst pipes and other types of leaks. Note: This does not include flood coverage (see below for more details).
- Theft or vandalism: Commercial property insurance can cover property affected by vandalism or theft if it occurs inside or within 100 feet of your business.
Covered events for commercial property insurance generally include damage from water, fire and wind as well as man-made events like theft and vandalism.
Coverage can vary between different industries. Read your policy documents very carefully to make sure you understand exactly what is covered and excluded for your business.
Commercial property insurance can protect different types of property
Your Massachusetts commercial property insurance can help cover assets like:
- Business structures
- Windows and floors
- Built-in fixtures
- Business furniture
- Equipment
- Business income
- Inventory inside or within 100 feet of your business
Types of Commercial Property insurance coverage
The following are the four main coverage types included in most Massachusetts commercial property insurance policies from NEXT:
Goods, gear and inventory
Commercial property insurance can help cover repair and replacement costs if your furniture, equipment or inventory is affected by a covered event. This coverage is also referred to as business personal property insurance or BPP insurance.
Example: If you own a carpentry business in Boston and an electrical fire damages your equipment, commercial property insurance can help pay to fix the damage.
Business income interruption
This insurance may be able to help cover lost income and other related expenses during a temporary closure due to a covered event, like a fire or water damage. This is also called business interruption insurance or business income insurance.
Example: If a Worcester bookstore has to close for a month while fixing water damage from a burst pipe, commercial property insurance can help make up for lost income during that time.
Equipment breakdowns
Commercial property insurance can help cover replacement or repair costs if your equipment is damaged due to a power surge or mechanical failure.
Example: If the electronic circuit control board in a Cambridge restaurant’s walk-in cooler is damaged by a power surge, commercial property insurance can help pay to repair the problem.
Buildings
Your commercial property insurance can cover repair costs for a building that you own and use for business purposes. If you’re leasing or renting a commercial space, you typically don’t need this coverage.
Example: If a windstorm knocks over a tree and it falls on the roof of a Lowell electronics store, commercial property insurance could help pay for the costs to repair the damage.
Does Commercial Property insurance help pay for damage from natural disasters in Massachusetts?
Damage caused by natural events like fire, hail and wind is covered by NEXT commercial property insurance. This coverage extends to weather events such as:
- Windstorms
- Tornados
- Wildfires
Floods and volcanoes are not included in commercial property coverage from NEXT. The National Flood Insurance Program (NFIP) offered by the federal government is the nation’s number one source of flood insurance. If your Massachusetts business operates in a coastal or otherwise flood-prone area, you may want to buy this coverage from the NFIP.1
In Massachusetts, many weather events can threaten your business, including flooding, snowstorms and hurricanes. For residents in the Boston area, the city website offers tips and alerts for preparing for these and other types of disasters.2 Business owners across the state can look to the Massachusetts Emergency Management Agency for advice on how to prepare their business for emergencies.3
NEXT commercial property insurance does not cover damage caused by natural disasters such as earthquakes or hurricanes. These require separate coverages.
Rioting and vandalism are examples of man-made disasters covered by NEXT commercial property insurance. You can also get coverage for terrorism acts as an optional add-on.
Is Commercial Property insurance required in Massachusetts?
The Commonwealth of Massachusetts doesn’t legally require businesses to have commercial property insurance.
However, business owners may find that they need this insurance and other kinds of business insurance to purchase or rent commercial property.
Even when coverage is not required, there are several business advantages associated with Massachusetts business property insurance, including:
Cover property damage costs
Commercial property insurance can help your business remain financially stable if you need to replace or repair damaged property due to a covered event.
Survive business interruptions
Business income insurance can help with lost income, relocation costs and employee wages in the event of a temporary closure following a covered incident.
Secure a loan
Massachusetts banks and lenders may require business owners to show proof of insurance before approving them for a mortgage on a commercial property. Similarly, if you want to get a loan from the Small Business Administration (SBA) you need to have business hazard insurance on building used as collateral.
Lease agreement
Commercial property managers in Massachusetts may ask you to have this insurance before they’ll agree to rent out a commercial space to you. This requirement is often written into commercial leases.
What types of businesses might need Commercial Property insurance in Massachusetts?
Businesses in nearly every industry can benefit from commercial property insurance.
Massachusetts business owners that operate from a brick-and-mortar store or an office space can get protection for their physical assets with this type of Massachusetts business insurance.
Commercial property insurance can provide additional coverage for home-based businesses. Entrepreneurs working out of their homes often need more coverage than their homeowner’s insurance policy provides.
In certain industries, commercial property insurance is particularly important for protecting business finances. Brick-and-mortar retail businesses, for example, often have a lot of inventory stored on site. Commercial property coverage can help protect the business financially if their merchandise is damaged or stolen.
How much does Commercial Property insurance cost in Massachusetts?
Insurance premiums for commercial property policies vary based on several factors, such as:
- How high you set your policy limits
- Your business property’s total value
- Where your business operates
- The kind of work that you do
- Your history of past insurance claims
- Your work experience and company age
- The number of employees at your business
NEXT offers affordable policies for Massachusetts business owners. Commercial property insurance costs $45 or less per month for 56% of our U.S. customers.**
Learn more about commercial property insurance costs.
How NEXT helps Massachusetts businesses
NEXT provides Massachusetts commercial property insurance policies designed for small businesses and self-employed workers.
It only takes about 10 minutes to get a quote, review your coverage options, choose your policies and download a certificate of insurance.
Start an instant quote online today.
Our team of licensed insurance advisors is standing by to assist you if you have any questions along the way.
