Insurance for Small Business Owners in Massachusetts

Commercial Auto Insurance.

Small business owners in Massachusetts whose businesses own vehicles are required to purchase commercial auto insurance. The state requirement includes minimum coverage requirements for business-owned vehicles of $20,000 in bodily injury per person, $40,000 in bodily injury per accident, and $8,000 in personal injury protection. Additionally, $5,000 in property damage liability per accident and $20,000 in uninsured/underinsured motorist coverage per person/$40,000 per accident are required. 

Workers’ Compensation Insurance.

Regardless of the number of hours an employee works, Massachusetts requires small businesses with any employees to carry workers’ compensation coverage. Household workers like house cleaners and caregivers who work more than 16 hours per week are similarly required to be covered by workers’ comp. Workers’ comp policies cover medical bills for work-related injuries and illnesses and provide partial lost wages. Members of a limited liability company (LLC) are not required to have workers’ comp.

Small Business Owner’s Insurance.

A Business Owner’s Policy (BOP) bundles property damage insurance and general liability into one comprehensive, convenient policy for small business owners in Massachusetts. A BOP typically covers losses and damages related to business property like a fire, customer medical expenses for onsite third-party accidents like a slip and fall, and advertising damage claims like libel or slander.

General Liability Insurance.

If your business doesn’t need commercial property coverage, general liability insurance can be obtained as a separate minimum coverage. If you lease space for your Massachusetts business, the property contract likely requires General Liability insurance. It helps ease the financial burden of customer injury and typically covers property damage, slander and libel lawsuits, and other third-party risks. 

Professional Liability Insurance.

Professional Liability insurance, also known as Errors and omissions or E&O, covers most work mistakes and errors, missed deadlines, incomplete work, and negligence lawsuits. Professional Liability coverage is recommended for any small business in Massachusetts that provides expertise as a service, like accounting, design, and technical services, as it can protect those businesses from related damage claims.

Cyber Liability Insurance.

2021 trends show an increase in ransomware threats. Cyber threats of all kinds in Massachusetts are increasing, including small business cyber threats. Cyber Liability coverage is recommended for Massachusetts small businesses to help manage the results of a cyberattack, including help paying for customer notification and fraud monitoring costs and associated legal fees. Cyber insurance helps businesses recover from ransomware and other common cyberattacks.