Commercial Insurance FAQs

I am a one person corporation. Do I need to carry workers compensation insurance on myself?

Yes. According to Massachusetts State Law you are an employee of the corporation and are subject to the workers compensation laws.

I am a sole proprietor. Do I have to carry workers compensation insurance?

No. Sole proprietors, partners in a partnership, and members of an LLC are not subject to the workers compensation laws. If you do however need to carry the coverage for certificate of insurance purposes you do have the ability to opt in for coverage.

I use my auto in business. Am I required to carry a business auto insurance policy instead of a personal auto insurance policy?

Generally you are not required to carry a business auto policy if you use your vehicle in the course of your business. A business use class can be put on your personal lines auto policy to cover the business use exposure. However, if the vehicle is owned by a commercial entity such as a corporation it would require a business auto policy. The weight and use of the vehicle may also make require you to obtain a business auto policy to properly cover your exposures.

I received an audit request from my insurance company. What does this mean?

Many businesses have their premium based on payroll or annual sales. Companies will audit the payroll or sales at the end of the policy period to determine the correct premium charge. Depending on what figures were used when the policy was issued the audit may result in an additional or a return premium.