Commercial Property Insurance in Massachusetts

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Commercial property helps cover physical assets

Business goods and gear

Business goods and gear

You turn your back and someone does the 100-yard dash with your business laptop. You’ll need a replacement.


A tree unexpectedly falls on your shop’s roof.
Equipment breakdowns

Equipment breakdowns

Your HVAC unit stops working the day after the warranty expires.
Business income interruptions

Business income interruptions

A fire damages an exterior wall at your business and you have to close for three weeks during repairs.

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.


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.

Other types of Massachusetts business insurance

Commercial property insurance can help protect your business’s physical assets. However, you may need additional coverage to protect against other everyday risks.
Most Massachusetts business owners also consider these options:
General Liability
General Liability insurance

General liability coverage can help cover related costs if your business is involved in an accident that causes third-party injuries or damage to someone’s property.

Workers Compensation
Workers’ Compensation insurance

If an employee gets injured on the job, workers’ compensation insurance can help cover related costs such as lost wages and medical bills. All Massachusetts employers are legally required to have workers’ compensation insurance.4

Commercial Auto
Commercial Auto insurance

Commercial auto insurance can help cover costs such as medical bills, repairs and towing if you or an employee gets into an accident in a vehicle used for work-related purposes.

All business-owned vehicles in Massachusetts must be covered by commercial auto insurance with minimum coverage of $20,000 per person, $40,000 per accident and $5,000 for property damage.5

Errors & Omissions
Professional Liability insurance (E&O insurance)

If  a customer or client claims you made a mistake in your work that cost them money, professional liability insurance can help protect your business financially. This type of coverage is often combined with small business general liability insurance.

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Let’s find the coverage you need for your business
Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.
General Liability insurance
General Liability
Protect yourself from accidents that cause physical injury or damaged property.
Professional Liability or Error and Omissions Insurance
Professional Liability/E&O
Shield yourself from lawsuits that claim your work errors caused financial losses.
Workers' Compensation Insurance
Workers’ Compensation
Cover medical bills and lost wages if your employees have an accident at work.
Commercial Auto Insurance
Commercial Auto
Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.
Tools & Equipment Insurance
Tools & Equipment
Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.
Commercial Property Insurance
Commercial Property
Keep your building, inventory and equipment protected from fire or water damage.
Business Owner’s Policy Insurance
Business Owner’s Policy
Combine general liability and commercial property into one policy to protect your business.
* 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.
** The cost data presented here are based on NEXT active customers in the U.S. who purchased commercial property insurance over the previous 12 months. These data should not be considered a substitute for obtaining a quote specific to your business. These data were updated in July 2022.
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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.