While business property policies’ primary coverages closely pattern those of homeowners policies, there is one important difference. Most business property policies don’t include liability coverage, which is found in many homeowners policies. Businesses usually must purchase separate liability coverage.
What Massachusetts Businesses Should Consider Business Property Insurance?
In general, businesses in Massachusetts that own property should think about getting business property insurance. Those that have loans against their property may be required to get insurance by the terms of their loan. Even businesses that aren’t obligated to purchase insurance, however, are often wise to get coverage because recovering from a disaster can be financially crippling.
Businesses that lease space normally don’t have to purchase commercial property insurance, since they don’t own the space they’re using. They still may need insurance for any inventory and equipment they have, but coverage is often available through a different type of policy that doesn’t include coverage for a building — and, therefore, costs less.
As an example, assume there is a restaurant that leases a space in a Worcester, MA strip mall. The restaurant would likely want coverage for its food supplies and the equipment it owns, but it probably wouldn’t need coverage for the building itself. The company that owned the strip mall would normally be responsible for insuring the actual building.