The Cost of a Claim: Why General Liability Insurance Is a Must for Massachusetts Businesses
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August 13, 2025
It doesn’t take a major disaster to put a business in financial trouble. Let’s say a customer slips on a wet floor, a delivery driver knocks over an expensive display, or a competitor claims your ad hurt their reputation. Each of these situations can lead to legal fees, medical bills, or settlement costs that run into the tens of thousands of dollars — even if you did nothing wrong. That’s why securing business liability insurance in Massachusetts is one of the smartest financial decisions a business owner can make.
What’s at Stake Without General Liability Insurance
Many business owners assume that their property insurance or business owner’s policy covers every possible risk. The truth is, without general liability coverage, you’re exposed to a long list of potential lawsuits and claims.
A single injury on your premises, damage to a client’s property, or an accusation of false advertising can drain your bank account long before you get your day in court.
Massachusetts law also makes it clear that unfair or deceptive business practices — even unintentional ones — can lead to legal action under Chapter 93A of the General Laws. The cost of defending yourself, plus any settlements or fines, could devastate a small operation.
What General Liability Insurance Does & Doesn’t Cover
A quality general liability policy typically includes:
- Bodily injury and property damage: Covers costs if someone is hurt or their property is damaged due to your business operations
- Medical expenses: Pays for third-party medical bills without requiring a lawsuit
- Personal and advertising injury: Protects against claims of libel, slander, or copyright infringement
- Legal defense and settlement costs: Handles attorney fees, court costs, and any payouts within policy limits
However, general liability insurance doesn’t cover everything. Employee injuries fall under workers’ compensation, professional mistakes require professional liability coverage, and vehicle accidents are handled by commercial auto insurance.
For example, if a customer trips over a loose mat in your shop, general liability can cover their medical bills and your legal defense. But if your employee is hurt while making a delivery, that’s a workers’ comp claim. Understanding these differences keeps you from being blindsided.
How Much Does a Claim Actually Cost?
As noted by the Swiss Re Institute, the cost of liability claims in the U.S. has risen sharply in recent years. Compared to the thousands — sometimes tens of thousands or more — that a single claim can cost, paying $25 to $115 a month for general liability insurance is a bargain.
For high-risk industries like contracting, retail, and food service, one serious claim could easily exceed your annual revenue. Even if you win a case, the legal defense alone can wipe out your cash reserves.
With business liability insurance in Massachusetts, you have a safety net that ensures one claim doesn’t derail years of hard work. Businesses with higher risk exposure may also benefit from commercial umbrella insurance to extend liability limits beyond the standard policy.
Protecting Your Business With the Right Policy
Not all general liability policies are the same. The right coverage depends on your industry, size, location, and even the contracts you sign. An independent agency like Berlin Insurance Group can shop among multiple carriers to find coverage that fits your operations — without overpaying for protections you don’t need.
If you’ve expanded your services, added locations, or grown your customer base, now is the time to review your coverage. Claims can happen to any business, large or small, and the right policy means you can keep your focus on running the business, not fighting for its survival.
About Berlin Insurance Group
At Berlin Insurance Group, we collaborate with top insurance partners nationwide to ensure you receive exceptional coverage from highly rated companies. As an independent agency, we have the flexibility to shop among dozens of carriers, each specializing in different types of risks, to find the best deals tailored to your specific needs. Whether it’s for your home, auto, or business, contact us today for a customized quote.