Massachusetts Retail Store Insurance (MA) – policies and cost

Retail store Liability Insurance in Massachusetts  – (MA), is a must have type of insurance to have for any company who conducts business selling to the public from local shops.

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If you’re a Retail store manager, you should buy retail store liability insurance, and here’s why! 

What actions do retail stores do in Massachusetts? 

But first, a retail store should not to be confused with a shop. There are many studios that include the word shop in their name, like repair shop that are not selling products, but provide work to the public.

The latter generally has some kind of registered license, and so they need to buy their own liability insurance in MA. A salesperson in Massachusetts is likely to be younger than the average for the state, and to earn less than the average for Massachusetts.

Retailers deal in public to sell merchandise to other businesses for personal consumption and so need Small Business insurance in Massachusetts to cover all possible risks.

Retail Store Insurance in Massachusetts

General statistics

About 6% of the total labor force in Massachusetts was employed in the retail sector in 2020. 

Interesting fact – workers in MA are ten time more likely to find jobs in clothing stores than in book stores.

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What are the standard forms of retail store insurance policy types in Massachusetts? 

General liability insurance.

The average general liability policy for retail stores in Massachusetts covers a total of $2 million for the whole year, with a cap of $1 million for a single claim.

Professional liability insurance

Most retailers in Massachusetts will see the need for a policy of at least $10000, and most choose considerably more when their own kind of business warrants it. In some cases, the insurance company in Massachusetts gives an incentive to include a deductible of a few hundred dollars, to stop the nuisance of ill-considered claims.

Product liability insurance

The ideal level of cover in MA, is dependant on the type of inventory that the store provides as well as the volume of sales.

Commercial vehicle insurance

Once goods leave your premises in Massachusetts, your standard insurance stops cover. If you are doing your own issuing with an auto, then you require specific policy giving you commercial vehicle insurance in Massachusetts for the vehicle, the driver and the contents.

Commercial insurance

Retail business depends on stock and a physical shop. This means investing your money into premises and goods, and you cannot afford to let this walk out the door. Commercial insurance in Massachusetts is especially designed to take into account the risks that can end up costing you a lot of money.

Property insurance

Massachusetts carries special risks when it comes to buildings, and any business must take out the necessary cover to protect property and contents. 

As well, the possibility of disasters is increasing because of climate change, so every shop owner should take care to get all the protection necessary to cover even the most remote possibility.

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Business Income insurance

There has been a history of ups-and-downs in MA, that have hit retail businesses hard. It is clever to get proper cover in place before such a calamity occurs, rather than to expect that you can never be hurt.

Average costs of these types of insurance in Massachusetts

Although every business is unique, there are enough examples of average quotes from insurance companies in Massachusetts for us to give rough guidelines. Of course, you should always check with an agent of what’s relevant for your business.

The below list is for annual premiums for the main types of insurance retailers need in Massachusetts.

Types of insurance Price range
Business income insurance $442 – $1488
Commercial insurance $997 – $2976
Commercial vehicle insurance $1532 – $2648
Public liability insurance $384 – $796
General liability insurance $571 – $1352
Property insurance $1346 – $3176

Cost of insurance in Massachusetts depends on many different factors

Please take note that the above figures are based on averages for small retail businesses. The size and location of your business in Massachusetts can have a big impact on the cost, and also the type of trade and inventory will.

For Example – a liquor store on the high street has a much different risk of vandalism than a babywear shop conducting Massachusetts retail sales that is located inside a large mall, so the costs of the insurance will be very different.

FAQ section:

Do you need business insurance in Massachusetts?

Almost all retailers in MA, will have to have at least some insurance, covering regulations because they are dealing with the public, and also probably to qualify to be granted to register with a business license in Massachusetts . As well, insurance in Massachusetts is especially designed to take into account the occurrences that can end up costing you a lot of money.

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What is considered a retail store and what is not?

Some businesses use the word “shop” in their definition, but don’t really act as retailers.

For example:

  • dram shop
  • tire shop
  • machine shop
  • repair shop
  • auto repair shop
  • coffee shop
  • auto body shop
  • coffee shop
  • mechanic shop
  • tattoo shop
  • bike shop
  • body shop
  • motorcycle repair shop

A better classification would be if the business sells several of the following to the public:

  • Sport, recreation, and leisure goods.
  • Food and beverages as in supermarkets, liquor stores, fruit & vegetable grocers and specialty food stores
  • Specialty products for narrow sectors, like florists, jewellers.
  • Entertainment, communication, and technology goods.
  • General retail as in department stores and clothing retailers.
  • Home living and homeware, trade, and gardening goods.
  • Apparel like babywear, kids, women’s and men’s clothing.
  • Books, newspapers, magazines and office supplies.

Where to find the right insurance?

In every city in Massachusetts you will be able to find a qualified insurance agent or broker that can advise you on your best options. Most independent brokers and agents work six days a week, with the following opening times.

Opening Hours:
Monday – 8:30 AM – 6:30 PM
Thursday – 8:30 AM – 6:30 PM
Wednesday – 8:30 AM – 6:30 PM
Thursday – 8:30 AM – 6:30 PM
Friday – 8:30 AM – 6:30 PM
Saturday – 7:30 AM – 1:30 PM