Commercial Property Insurance in Massachusetts

What Coverages Does Business Property Insurance Offer?

While coverages can vary from policy to policy, most business property policies have two main coverages:

• Buildings Coverage, which typically provides protection for commercial buildings

• Contents Coverage, which typically provides coverage for equipment, inventory, supplies and similar items

Businesses may choose to supplement these coverages with additional, more specific coverages. The other coverages that are available depend on what a particular insurer offers.

Does Business Property Insurance Include Liability Coverage?

Business property policies normally don’t include liability coverage because businesses have diverse liability coverage needs. To get the liability protections they need, businesses usually purchase general liability insurance and/or other liability policies.

Does Business Property Insurance Cover Floods and Earthquakes?

In general, business property policies don’t include floods and earthquakes among their standard protections. Some policies may offer these protections as an optional add-on. If a policy doesn’t offer flood and earthquake coverage as an option, a separate policy may be needed to obtain protection against these risks.

What is the Difference Between an Open-Perils and a Closed-Perils Policy?

Most commercial property policies are either open-perils or closed-perils policies. Open-perils policies normally cover any risks that aren’t specifically excluded in the policy’s paperwork. Closed-perils policies typically only cover risks that are listed in their paperwork. As a broad rule (to which there are exceptions), open-perils policies tend to offer more robust coverage than closed-perils policies.

What Factors Affect Commercial Property Policies’ Premiums?

Insurance companies consider many factors when calculating commercial property policies’ premiums. In addition to the coverages and limits that a business selects, an insurer may take into account:

• The location and construction of a property

• The size of a property and how it’s used

• The security features installed on a property

• The business’ past claims history

• Other factors that assist with risk-assessment

How Can Businesses in Massachusetts Get Commercial Property Insurance?

Massachusetts businesses that need coverage for a commercial building should talk with a Garrity Insurance agent who specializes in commercial property insurance. Our agents are familiar with commercial property policies and will know the nuances of these policies and have informed coverage recommendations. They’ll know what protections a business should look for based on the particular needs of business' property. Since we're independent, our agents are free to recommend multiple policies from different insurers.