Collection: Business Insurance

Most businesses in Massachusetts are exposed to at least some risks. Business insurance helps businesses protect themselves from many of the risks they face.

“Business insurance” is sometimes referred to as “commercial insurance.” Both terms are used to denote policies that are designed for businesses from those that are intended for individuals.

Most Massachusetts businesses can benefit from having at least some commercial insurance in place, for few businesses are without any risk exposure. Without sufficient protection in place, even a seemingly minor risk could be devastating if something happened.

The above is generally true regardless of a business’ legal structure or size. Businesses can be financially crippled or worse by an incident regardless of whether how small or larger they are, and whether they’re a sole proprietorship, LLC, S Corporation or other entity.

Because businesses have a wide array of risk exposures and insurance needs, insurers offer a variety of commercial policies. Some common coverages that businesses frequently get are:

     ● General Liability Insurance, which might cover common accidents
     ● Commercial Auto Insurance, which might cover business-owned vehicles
     ● Commercial Property Insurance, which might cover business-owned buildings
     ● Product Liability Insurance, which might cover product-caused accidents
     ● Workers Compensation Insurance, which might cover work-related injuries
     ● Professional Liability Insurance, which might cover work-related errors

(This is far from a comprehensive list.)

Insurance companies frequently offer two types of package policies that let businesses combined commercial insurance coverages. Both types of package policies normally come with substantial premium reductions.

Business owners policies offer a selection of basic insurance coverages that are generally appropriate for small businesses with standard insurance needs. These policies might have general liability, commercial auto and/or commercial property coverage (among a few others).

Commercial package policies tend to be more flexible and robust than business owners policies, making these good choices for larger businesses and businesses with unique insurance needs. Commercial package policies normally offer all the coverages found in business owners policies along with many more.

In addition to combining policies together in either a business owners policy or commercial package policy, there are several other ways for businesses to lower their insurance premiums. Insurance companies sometimes offer discounts for:

     ● Paying policy premiums in full
     ● Installing security systems on property and buildings
     ● Requiring drivers to have commercial driver’s licenses
     ● Implementing employees safety programs
     ● Being in business for a minimum amount of time
     ● Remaining claims-free for a certain period

Obviously, the exact discounts that a business can take advantage of depend on what coverages the business is purchasing.
Finding policies through an independent insurance agent can also help businesses save money on the coverages they need. Independent agents are free to compare policies from multiple insurers, finding the policies that offer the best coverage at an affordable price.

Generally speaking, commercial policies’ premiums are tax-deductible so long as the insurance coverage provided is solely for a business. If any portion of the coverage provides personal coverage for an individual, the premiums may not be deductible.

Before writing off any premiums as business expenses, businesses should first consult with a tax professional who can apply current tax law to specific situations.

Selecting the right business insurance coverages requires careful consideration of a business’ particular risk exposure. For help reviewing your business’ exposure and finding the policies it needs, contact the independent Massachusetts insurance agents at John  P. Russell Insurance. Our team specializes in commercial policies and we’re here to help your business get properly covered at an affordable price.