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Many small businesses in Massachusetts are exposed to a common set of potential risks. A business owners policy is designed to help small businesses protect themselves from these common perils.
Business owners policies are a specialized type of commercial insurance. They’re specifically designed to offer foundational protections for small- and medium-sized businesses.
Most business owners policies are package policies, combining a few different individual coverages into a single combined policy. The exact coverages included in a particular policy can vary, but they might include:
Some policies may offer other coverages not listed here.
In Massachusetts, workers compensation coverage is usually purchased through a stand-alone policy. Therefore, most business owners policies don’t include workers compensation protection within their coverages.
Since many small businesses have employees and need workers compensation coverage, however, insurance agents who help business owners find BOPs can often also assist with finding workers compensation policies.
Combining multiple coverages that a business needs into a single BOP has two main advantages, one that’s somewhat minor and another that’s quite significant.
First, business owners are able to make a single payment for all of the included coverages rather than a separate payment for each one. This convenience likely isn’t going to determine a business’ success or failure, but business owners who are trying to manage diverse tasks appreciate having a single payment.
Second and more importantly, insurers frequently offer steep discounts when coverages are purchased together through a BOP. These discounts make coverage more affordable, and they can be especially helpful to businesses that have tight cash flows.
Many small- and medium-sized businesses in Massachusetts can benefit from the protections that business owners policies offer, for lots of businesses need more than one coverage. Business owners who aren’t sure whether a BOP is sufficient for their company can talk with a knowledgeable agent about business owners policies and commercial package policies.
Commercial package policies are similar to business owners policies in that they offer multiple commercial insurance coverages in a single policy. In comparison to business owners policies, commercial package policies tend to be more robust and/or specialized. They’re typically used by businesses that have unique risk exposures or need more protections than business owners policies can afford.
Because business owners policies are designed with small- and medium-sized businesses in mind, they’re often specifically crafted to offer foundational coverages at affordable rates. Exactly how much a policy costs depends on a business’ industry, location, annual revenue, size and many other factors.
Selecting a BOP requires careful consideration of a business’ particular risk exposure and the coverages that are available through both business owners policies and other insurance options. Business owners can select the right policy for their company only after all risk factors and options have been weighed.
For help determining what business owners policy is right for your Massachusetts business, contact the team at Haberman Insurance Group. Our specialized, independent agents have worked with many small businesses in the state and have the expertise necessary to find you the best policy for your business.