Commercial Insurance FAQ

Commercial insurance refers to a broad category of policies designed to protect businesses from financial losses due to property damage, liability claims, employee injuries, and more. If you own or operate a business - even a small home-based one - commercial insurance helps safeguard your assets and operations.

Some of the most common types include:

• General Liability Insurance
• Commercial Property Insurance
• Workers' Compensation
• Professional Liability (Errors & Omissions)
• Commercial Auto Insurance
• Business Interruption Insurance
• Cyber Liability Insurance

Your specific needs depend on your industry, size, and exposure to risk.

In Massachusetts, workers' compensation insurance is required if you have employees. If your business owns vehicles, commercial auto insurance is also required. Other policies, like general liability or property insurance, may not be legally required but are often necessary to meet lease agreements, contracts, or lending requirements.

A BOP bundles general liability, commercial property, and business interruption coverage into one convenient, cost-effective policy. It's a great fit for many small to medium-sized businesses that need basic protection without the complexity of multiple standalone policies.

Premiums vary based on the type of business, location, number of employees, claims history, and coverage limits. For example, a retail store's needs are very different from a contractor's or a law firm's. Your insurance broker can help you assess your risk and find a plan that fits your budget.

General liability protects your business if someone is injured on your premises or if your operations cause damage to someone else's property. It also covers legal fees, settlements, and medical costs if you're found liable. This is often the foundation of any commercial insurance plan.

General liability covers physical injuries or property damage, while professional liability (also known as errors & omissions) covers claims of negligence, mistakes, or failure to deliver services. If you offer advice, consulting, or services, you may need both.

Yes - homeowners insurance typically does not cover business-related activities, equipment, or liability. If you operate a home-based business, it's smart to have separate coverage or endorsements to protect your work-related assets and activities.

Absolutely. Growth changes your risk profile. Whether you move to a new location, add vehicles, expand services, or hire more staff, it's essential to review and update your coverage to ensure you're fully protected.

Start with a risk assessment. Your broker will ask about your operations, assets, employees, and potential liabilities. From there, they'll help you prioritize the essential coverages and customize a plan that fits your business, industry, and budget.