Business Owners Policy in Massachusetts

How Do Business Owners Policies Differ From Commercial Package Policies?

Business owners policies and commercial package policies both provide multiple coverages that help businesses protect themselves from risks they face. The number and kind of risks that the two different types of policies protect against differ, though.

While BOPs tend to provide coverage against risks that many businesses face, CPPs normally can be set up to provide against a greater quantity of risks and more unusual risks. It’s not unusual to have many coverages to choose from when purchasing a CPP. These coverages might range from common general liability coverage to highly specialized farming or ranching loss coverage.

What Massachusetts Businesses is a BOP Right For?

Many small and medium businesses in Massachusetts can benefit from having a BOP. While a few small businesses may only need one coverage, most face at least a few different risks that call for a BOP’s multiple coverages.

Larger businesses and ones that have unique risk exposures may find a BOP’s protections insufficient. These businesses tend to be the ones that need the more robust and flexible protections of CPPs.

Is Workers Compensation Coverage Included in Business Owners Policies?

Business owners policies usually don’t include workers compensation coverage. Businesses that have employees need workers compensation normally purchase it as a separate policy. Most insurance agents that offer business owners policies can also assist with selecting workers compensation policy.

What Benefits Do Business Owners Policies Offer?

Compare to purchasing insurance coverages individually, business owners policies offer two primary benefits. First, insurance companies often provide discounts for lumping multiple coverages together in a package policy. Second, paying one premium rather than several makes managing a business’ bills slightly easier.

How Are Business Owners Policies’ Premiums Determined?

Insurance companies take into account many different factors when setting premiums for business owners policies. Some of the items insurers consider are:

• Where a business’ headquarters, offices or property is located

• What industry a business operates in

• How much a business makes in annual revenue

• What coverages, limits and options a business selects

• How many insurance claims a business has previously filed

Because there are so many factors, it’s impossible to know exactly how much a BOP will cost without requesting a specialized quote.

How Can Businesses in Massachusetts Get Quotes for a Business Owners Policy?

For help requesting quotes and selecting a business owners policy, business owners in Massachusetts should contact a Garrity Insurance agent who specializes in this type of insurance. Our agents are well-versed in business owners policies and will also be familiar with commercial package policies, so they’ll be able to explain which type of package policy is better suited to a particular business’ needs. Whichever they recommend, they’ll be able to request quotes and compare policies from different insurers since we're independent.