In Massachusetts, business owners need adequate coverage to prevent major losses. The first step in achieving the right protection is to define the requirements for insurance. The following are FAQs that Insurance Agents in Shrewsbury MA answer about business insurance.
What Level of Coverage is Needed for a Business?
The initial coverage required protects the structure itself. The owner needs coverage that will repair or replace the building in which the business operates. Next, they need liability coverage to protect against claims made by consumers or business partners. Finally, they need coverage to pay for worker-related injuries. The combination of these policies provides the highest level of coverage for the company.
How Does Coverage Differ for Home-Based Businesses?
A home-based business requires business coverage for the portion of their property that is used for their business. They will also need coverage for all equipment they use. These business owners need to add liability coverage if they provide services that require customers to visit their location or if they offer services at the customer’s home.
What Additional Items are Covered Under Business Policies?
Any inventory that is stored inside the building is covered under the policy. All equipment and machinery used inside the building are protected. If they become damaged or stolen, the policy pays to replace them as they are a vital part of the business. Any valuables that are stored inside the building are also covered and replaced through the business policy.
Do Business Owners Need Flood Coverage?
If the property is located in a flood zone, the owner is obligated to purchase flood insurance. If they don’t, they will face limitations in coverage if a flood damages the property. If the building is financed, the mortgage lender will not release funds until the buyer has this level of coverage.
In Massachusetts, business owners must assess protection for their building as well as their reputation. They must review all available policies to determine what options meet their requirements. The type of business may define the level of coverage they need the most. Business owners who need coverage contact insurance agents in Shrewsbury MA or visit us today.
