Personal Liability Insurance: What Happens When Someone Gets Hurt on Your Property

While being your own boss can be rewarding, a tremendous amount of work is generally required to make your business successful. Purchasing an existing business could be a good idea, as it may provide you with an already well-established client base. You may need to do some research prior to purchasing a Massachusetts business to make sure there are no unwelcome surprises after you close the deal. One important thing you should investigate is insurance. It may make sense to find out what insurance policies are in effect, and what you must do to continue these policies once you have taken over the business. Your insurance agent may be the best source of information for these questions.

According to the Small Business Administration (SBA), you may need a letter of intent from the seller stating the proposed price, the terms of purchase and the conditions for the sale of the business. You may want to see financial statements for the last three to five years, audited by an independent CPA, to determine the solvency of the business. You will need to know the terms of any leases, including the building, equipment and other property. It may be wise to evaluate the current insurance coverage to decide whether or not you may want additional coverage should you purchase the business.

Should you decide to purchase a Massachusetts business, it’s important to protect your investment with the right insurance policies. After evaluating the risks involved in your business operations, you may want to meet with your agent to discuss your insurance options.

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