Category Archives: Business Owners Insurance

What Is A BOP And Why Does Your Business Need It?

Although it may sound like a dance craze from the 1950’s, a BOP can go a long way in protecting your small to mid size business against the risks that can have a negative financial impact on you and your organization. BOP is actually an acronym for Business Owners Policy. In essence it is business insurance that protects against fire, burglary, liability, and business interruption losses. Since a BOP is prepackaged, it is typically more cost effective than purchasing separate policies.

The added bonus is that you only have to review one policy, which saves time dealing with paperwork. Additional coverage can be added, if need be, in the form of an endorsement or a rider. BOP insurance is a product that is specifically designed to serve small and medium sized businesses. The type of business goes a long way in determining if your company is eligible. Typically speaking, organizations with up to one hundred employees, and revenues that do not exceed $5 million per year are candidates for a BOP policy.

That being stated, there are particular types of industries, such as restaurants, that may be ineligible based on the specific risks inherent in the business. In this case, you would need to consider purchasing the individual coverage on a separate basis.

The BOP Combines Three Insurance Policies Into A Single Package

A BOP provides the core insurance policies that most small to mid size businesses need in one convenient package. They are as follows….

Property Insurance

This type of coverage provides protections for your building or office space, and any property that is owned by the business such as equipment and inventory.

Liability Insurance

This type of coverage protects the business and business owner against the costs that arise if a third party is injured as a result of visiting the business, or by utilizing your products and or services.

Business Interruption Insurance

This type of coverage, also known as Business Income Insurance, replaces revenue that is lost in the event that your business is forced to shut down due to fire, wind damage, and other covered losses.

The BOP Can Be Customized To Meet Your Needs

It is important for business owners to fully understand the fact that a BOP does not cover all risks that are associated with operating a small to mid size business, and the coverage limits are typically lower. For example, if you have employees on the payroll, you may very well be required to carry a Workers Compensation Insurance policy. If you have a business owned vehicle, you will also need insurance coverage that goes above and beyond your personal car insurance policy.

You may also want to consider insurance coverage for things such as a computer system break in, or business identity thefts. There certainly are a plethora of unique risks that are associated with your business. A reputable insurance professional can help you discover the particular business related insurance policies that are right for you and your business.

Excess Liability And Umbrella Policies Can Increase Your Coverage

If you need to increase the protection provided by your BOP insurance, adding an Excess Liability or Umbrella Insurance policy is the smart choice. In essence, this type of supplemental insurance policy increases your coverage beyond the limits of your primary insurance policies. Depending on your particular policy, the umbrella coverage is designed to widen and increase coverage. It basically fills in the gaps left by other types of liability insurance coverage by covering additional areas of risk. It can even reimburse you for deductibles.

In conclusion, the BOP may very well be the ideal way to protect your business and yourself. If you have any questions, please call (508) 831-0133 to contact an associate at Zawada Insurance. We are happy to walk you through the details of your life insurance policy and explain your coverage options. We look forward to helping you with all of your personal and or business related insurance needs.


The Business Owner’s Insurance Policy Explained

Is your business insured? If you answered no to this question do not worry, you are not alone. Unfortunately, less than thirty-percent of small business owners are covered by a standard Business Owner’s Insurance policy, or BOP for short. It is completely understandable. When you are starting a small business, or even growing an existing business, there is a plethora of pressing issues that take precedence. Purchasing an insurance policy may even feel like an unnecessary expenditure.

However, it is extremely risky to simply cross your fingers and hope that nothing bad will take place. There certainly are numerous reasons why you should avoid leaving the fate of your business to chance. For example, what would happen to your organization, and even your personal finances, if the business were faced with a threatening lawsuit? The good news is that a Business Owner’s Insurance policy is a cost effective way to protect both your business and yourself.

The Basic Business Owner’s Insurance Policy

The foundation for small to mid-size business insurance is the Business Owner’s Insurance policy. It basically covers general liability, and commercial property loss, which are two of the largest threats that business owners potentially face on a daily basis. General liability insurance protects your company from lawsuits that are filed by a third party. For example, if a customer slips and falls in your office or at your store, the general liability insurance covers the damages. Commercial property insurance typically covers damage or loss to your organization’s property. For example, your building burns down, or a burglar robs all of your computers. There are additional policies that you can add to the Business Owner’s Insurance policy to protect your company and yourself even further.

The Business Interruption Insurance Policy

If your business suffers from a disaster, such as a fire, the property is covered under the commercial property insurance section of your BOP. However, if the property damage prevents you from operating your business it can be crippling to the financial health of your company. The good news is that a Business Interruption Insurance policy can help replace income that is lost during the down time. In essence, the Business Interruption insurance is a real lifesaver that can help you stay on your feet during the rebuilding process.

The Professional Liability Insurance Policy AKA The Errors And Omissions Policy

This type of business insurance protects against lawsuits that are caused by mistakes made by yourself or your employees. It is most often utilized by professional services business such as accountants, lawyers, and marketing agencies to name a few. For example, if an accounting firm makes a mathematical error on a client’s tax return, and the Internal Revenue Service penalizes the client, they may very well sue the accountant. The Professional Liability Insurance policy, also known as the Errors And Omissions policy, will help cover the losses. People tend to sue even if you have not made a mistake. The Professional Liability Insurance policy covers your attorney fees and court costs even if you win the case.

In conclusion, being in business can be exceptionally risky. This holds especially true for small business owners. Do not make it even riskier by forgoing a Business Owner’s Insurance policy. It can actually make the difference of staying in business, or closing your doors forever if a nasty lawsuit or unfortunate disaster happens to strike. There are numerous other areas of your business where you can look to save money. Do not be part of that less than thirty-percent of business owners that fail to carry a Business Owner’s Insurance policy. Many of them end up looking back and wishing that they had been smarter about business insurance.

For more information about business owners insurance or other types of business insurance please contact Zawada Insurance Agency today and one of our licensed, experienced, and dedicated agents will answer any and all questions that you may have.

Should your insurance coverage change during the spring?

With the onset of spring comes various business changes that may include new business ventures and projects. However, the season also comes with its own challenges, excess water being one of them. The volatile spring weather could be dangerous for you and your business. Consequently, ensuring you have insurance protection could go a long way in shielding you from financial losses in case of a natural disaster. Here are some tips to help you to remain safe and secure during the upcoming spring months.

  1. Floods

Flood insurance cost does not compare to the costs that flood damages can cause. The average flood damage when it happens is $39,000 while flood insurance is only about $700 per annum. These figures show that regardless of whether you are a homeowner or a business owner, having proper flood insurance coverage is crucial.

  1. Wet weather increases chances of injury

During wet weather, cases of slips and falls increase significantly. Employees involved in outdoor activities such as maintenance and cleanup are also exposed to similar risks. During these accidents, you and your employees may get injured and some goods may also be destroyed in the process. Due to the rise in your insurance liability risks, you should ensure you have the necessary insurance coverage during this time.

  1. Increase in traffic and road accidents

During the spring break there are far more travelers and with that comes an increased risk of accidents. Motorcycles are at a higher risk as its one of the best seasons to hit the road and enjoy the weather again. New England weather means sunny one minute and rain the next which can cause some dangerous driving conditions. Did you know that in 2016 alone 13% of traffic fatalities were motorcyclists? When spring is in the air, motorcycles are everywhere, and so in an increased risk for everyone, so making sure your covered is crucial.

  1. Spring comes with increased activities

If you own a business, spring could be one of the best times to expand. With business expansion, there is also an increase in customers and an increase in business additions. Ensure your insurance covers every new thing that you have added to your business. If you purchased new vehicles and equipment, ensure you have updated your insurance to cover for the changes in your risk profile. Check your general liability insurance to ensure all the new risks or tasks are covered.

If you are unsure how you need to go about adjusting your insurance during the spring, feel free to contact us. We will gather all the necessary data and information about the risks to determine the insurance packages that you need. Since 1989, we have provided our clients with quality personal and business insurance products at Zawada Insurance Agency Inc. We will help you to avoid any claims against you or your business by getting you insured.

5 Types of Insurance Important for a Small Business

Insuring your business against common risks such as fire and theft is important regardless of its size. A larger business may require more types of insurance than a smaller one due to the high number of risks. Here are some important types of insurance covers that a small business may require.

  1. Commercial Auto Insurance

In most cases, small business owners will use their personal vehicles for business purposes. However, it is always advisable to discuss with your agent as most personal auto insurance policies don’t cover cars that are mainly used in business. You should protect cars that carry equipment, products, employees, or anything linked to your business.

Commercial auto insurance will cover your business vehicles from accidents. In case your employees use their cars for business purposes, a non-owned auto liability will be enough to cover their vehicles from damage and collisions. Always ensure all the vehicles involved in the business are insured.

  1. Life Insurance

Life insurance is a way of securing your financial future. In case you die, your beneficiaries will get a certain amount of dollars from the insurer. Although this insurance covers an individual against death, it offers peace of mind to the bereaved family. When you die, you know your family will not be burdened financially and there are high chances your business will continue to operate. Some small businesses fail when their owners die as some of the capital is used to cover burial and other related costs.

  1. Liability Insurance

Whether your business is home-based or located in other rented premises, it must have liability insurance. Your business can be sued. Some of your clients may say your defective products or services have harmed them. Other may link your business to hazardous environmental impacts. Liability insurance will cover all the damages and defense connected to your business up to the policy limits.

  1. Business Owner’s Policy (BOP)

Business owner’s policy (BOP) is a package that combines protection against important property and liability risks. BOPs include liability protection, business interruption insurance, vehicle insurance, property insurance, and crime insurance. Many small businesses go for this package, as it is cheaper than individual coverage’s. Sometimes, business owners change whatever is included in the package to match their specific needs.

  1. Property Insurance

You may set up your small business in your own building. Your business may also have personal property such as computers, raw materials, inventory, office equipment, and other tools. Property insurance will protect you in case of smoke damage, fire, vandalism, and theft among other types of common “perils.” Some types of this insurance also include coverage for water damage, debris removal after a fire, and equipment breakdown among other things. Another major benefit of this cover is that you may get operating funds when you are out of business due to catastrophic loss.


Terrorism insurance, umbrella policies, and workers compensation insurance are some of the other types of insurance important to a small business. At Zawada Insurance Agency, we can assist you to select the best insurance options from some of the top-rated Massachusetts insurance carriers. Since 1989, we have served our clients throughout Central Massachusetts and beyond.


For any insurance queries, contact us now.

Building Owners Insurance: A Helpful Checklist

Building Owners Insurance: A Helpful Checklist

What to Know about Multi-Family, Duplex and Three-Decker Apartment Building Insurance

If you own a residential building—multi-family, duplex and three-decker apartments—you need to make sure you have the right insurance. Here’s a helpful checklist of things to consider:

Don’t leave loopholes. All-Risk Insurance is generally better than Named Peril Insurance because it takes away potential loopholes that could cost you a lot of money. First, it’s important to understand what both types of insurance cover.

All Risk Insurance. This includes everything, except for a named exclusion in your policy. For example, a fire and the property damage it causes would be covered with All Risk. If your tenants have to move out temporarily while damages are being fixed from a fire, flood or other unforeseen disaster, the costs would be covered. Be warned, however, that anything deemed the result of poor maintenance—a burst pipe from old, rarely inspected pipes, for instance—might be excluded. This is why a building owner, or landlord, must keep the property well-maintained and up-to-date.

Named Peril Insurance. This will only cover losses that are specifically named in your policy. Anything that doesn’t fit what is named won’t be covered. This can be a huge loophole for insurance companies to avoid paying costs. For this reason, it’s recommended that you have All Risk, to keep yourself covered from unforeseen perils.

Low cost doesn’t always mean better insurance. This is especially true for apartment building owners. Remember, as an apartment complex or multi-family home owner, don’t focus only on getting the lowest premium. Your first concern should be adequate coverage so there are no gaps. You could find that skimping too much will hurt you later if something comes up, and you’re not covered for it.

Don’t make the mistake of focusing only on getting the lowest premium to save money. For apartment owners, this is a mistake. You want to make sure there are no gaps that could be costly later. That’s why it’s always a good idea to consult with professionals.

Get the right types of coverage. As an apartment complex owner, you have to decide what types of coverage make the most sense for your particular situation. Liability protection is absolutely necessary. In New England, you’re dealing with rough winters and snow melt that can lead to potential flooding. You’ll also, as a result, encounter situations where there could be ice, and your tenants could slip and fall on your property. You also need to make sure your parking areas are properly plowed to avoid other types of accidents. So your coverages should reflect where you live and what your likely perils may be.

Advertising Liability. This is one not often thought of, but it’s more important now than ever. Libel, slander and misrepresentation of your property are issues covered under this term. If you should post something unfavorable about another business, or if you have public images or information posted online that misrepresents your property, these could come back to haunt you. It’s better to be safe and covered.

The right type of insurance is crucial. And many factors will affect it. Do your research and make sure you’re working with professionals to help you get a policy that will give you peace of mind.

Zawada Insurance Agency is a family-owned and operated independent insurance agency, working to get you the most comprehensive coverage at a competitive price. For more information about auto, life, homeowner, business and other insurance coverages, please contact Zawada Insurance Agency today.

Zawada Insurance Agency, Inc. located in Worcester, Massachusetts, serving central Massachusetts and beyond.


Workers’ Compensation and Lowering Costs

How Business Owners Can Protect Themselves  

If you are a business owner, you absolutely must have Workers’ Compensation Insurance. This protects you from liability if any of your employees should be injured on the job. But there are also many things you can do to prevent accidents and reduce the chances that you will ever need to rely on this insurance. Read on to find out more.  

What Workers’ Compensation Insurance Covers

Often referred to as “workman’s comp,” this type of insurance is basically liability coverage for your employees. From offices to construction sites, no workplace is immune to the possibility of an employee accident or unforeseen event. As long as you’re protected with Workers’ Compensation Insurance, it will cover the cost of medical expenses if the employee is injured on the job. It will also cover any lost pay the employee would have earned while he or she is out with an injury or illness.  Perhaps most importantly, this type of insurance will cover any legal fees you may incur if an employee should file a lawsuit against your company because of their on-the-job injury or illness. Never underestimate the need for this kind of insurance. You may be surprised at how quickly legal fees can pile up!

How to Prevent On-the-Job Accidents

No matter what your business, your employees could have an accident at any time. That’s why it’s important to train all of your employees on proper safety procedures for your type of business. Hold frequent trainings, so new employees are made aware as well. Having a safety procedure manual is also helpful.

Always be sure to employ good safety practices particular to your business. For instance, if you own a restaurant, make sure you have fire safety procedures in place for cooks and anyone working in the kitchen.

Construction companies are especially vulnerable because employees will be around heavy equipment that could be hazardous and particulate dust that can cause respiratory illnesses. If employees aren’t taught correct procedures, they could hold heavy tools incorrectly and hurt themselves.

In addition to safety training, consider ways to make your business safer. Be sure floors aren’t slippery, any loose equipment is secured and have your office building inspected for mold and other allergens that can cause diseases after long-term exposure. Check for carbon monoxide levels and make sure everything adheres to safety standards.

Outside, have your walkways cleared of snow in the winter and parking lots properly lit. You don’t want the grounds to be high-risk areas for crime.  Be sure to have adequate signage, clearly indicating entryways and exits. Schedule regular maintenance checks to ensure that everything is working properly—electrical, HVAC, elevators, cook tops for restaurants, water and pipes, and anything that needs to be maintained.

Taking these precautions can help to ensure your employees remain safe. For more information on insurance for business owners, please contact Zawada Insurance Agency. We work to give you comprehensive coverage at a competitive price.

Zawada Insurance Agency, Inc. is a family-owned and operated independent insurance agency, located in Worcester, Massachusetts, serving central Massachusetts and beyond.

Business Owners Insurance

If you’re a small business owner, you may be concerned about the cost of getting Business Owners Insurance. A Massachusetts Business Owner’s Policy (BOP) will give you the coverage that’s required for a business owner, all in one package. If you’re a small business owner, we recommend you get a BOP to have the necessary coverage for much less cost.

What Does a Business Owner’s Policy Cover?

No matter what your business, there are things you’ll want to be covered for, maybe even things you never thought about. For example, if there’s a crime committed on your property, could you be held liable? What if you own a restaurant and someone chokes on the food or slips on your floor? What if a customer claims that the product you advertised wasn’t what was delivered? Lawsuit and medical costs can get pretty high. That’s why it’s nice to have a BOP that covers:

  • Crime
  • Personal Injury
  • Medical Payments
  • General & Product Liability
  • Professional Liability
  • Employment Practices Liability Insurance (EPLI)
  • and more

Also included are coverages such as Property Insurance and Cyber Liability. In future blogs, we’ll break these down some more.

What Types of Businesses Should Carry Business Owners Insurance?

Anyone who owns a business should be insured. Period. Some businesses may require more coverage in an area than another type of business. For example, if your business is more Internet-based, you’ll want to have Cyber Liability coverage. This coverage protects your business in the event there is a data breach that compromises your customers’ personal information. If you experience a cyber attack, this coverage can pay for any legal fees you might incur from customers, as well as the basic cost of notifying all of your customers that the breach occurred in the first place. In this age of cyber criminals, any business that has an online customer database can’t be too careful.

On the other side of the spectrum, professional contractors need to make sure they’re covered for Bodily Injury, as the physical risks associated with electrical and construction work tend to be greater than other types of businesses. Stepping on a live wire, accidents associated with falling scaffolding—all of these are more prevalent in contractor businesses.

Getting the Right Insurance Coverage for Your Business

So as a business owner, you want to make sure that you have the most appropriate, and necessary, coverage for your type of business. That way, if there is an unforeseen event, you can rest assured you’re covered.

At Zawada Insurance Agency, we’ll work with you to help you find the right type of Business Owners Insurance with the coverages most important to you and your business.

Zawada Insurance Agency is a family-owned and operated independent insurance agency, working to get you the most comprehensive coverage at a competitive price. For more information about auto, life, homeowner, business and other insurance coverages, please contact Zawada Insurance Agency today.

Zawada Insurance Agency, Inc. located in Worcester, Massachusetts, serving central Massachusetts and beyond.





New Year, New Insurance

How to Get Lower Rates on Your Insurance

As the New Year approaches, one of your resolutions may be to find more ways to save money. You can do this by rethinking your insurance policies. It’s always a good idea to do an annual insurance review, because you might discover that you could be eligible for discounts and other savings that you aren’t currently taking advantage of!

For example, if you have an older car, you may have had the same car insurance for years. But did you know that your rates could be lowered based on any changes that have happened recently? For instance, if you changed jobs and don’t commute as far, that can affect how much you pay. And most likely, it will reduce the cost.

More Ways to Save on Homeowners Insurance

Also, you might be eligible for discounts to your Homeowners Insurance if you recently installed a security system or quit smoking. If you started bundling all of your insurance policies with one company, they’ll most likely give you discounts for that, too.

How to Do an Annual Insurance Review

Take time before the New Year to collect all of your insurance policies, whether it’s home, auto, renter’s, motorcycle, etc. Usually you can find the basic information on the summary page of your policy. Here’s what to look for: the amount of coverage, your premium costs and your deductible. Keep in mind, if you want to lower your premiums, you’ll be raising your deductible. First, you should make sure you can afford the deductible amount if you have to make a claim.

Could You Rebuild Your Home If You Had To?

This is an important question when you’re reevaluating your home insurance. The reality is, construction costs could be much higher than when you first took out your insurance policy. Also, remember that insurance companies will tell you that if something major needs to be replaced, it will be replaced with something of “like kind and quality.” Your kitchen may still look like the 1980s. If you needed to upgrade your kitchen with more contemporary cabinetry and appliances, you’ll need to be able to cover that cost.

Did You Purchase Valuable Items?

In the past year, you may have purchased jewelry or other very valuable items that you may not have extra coverage for. Do an inventory to make sure you haven’t forgotten that priceless painting! If you discover that you did buy something like that, you’ll need to increase your coverage for “personal possessions.”

Is Your Home More Likely to Flood?

When you purchased your house, it may not have been in a flood zone at the time. But in recent

years, have you had more damaging storms and repeated flooding in your basement? It may be time to consider getting flood insurance, even if it wasn’t required.

What Umbrella Insurance Can Do for You

Last but not least, consider umbrella insurance. It’s a low-cost way to get extra protection for things like your retirement fund, investments and any future income, which may all be lost as the result of a lawsuit. Many people don’t think about liability coverage until it’s too late. So umbrella insurance will help protect you above and beyond your standard home and auto insurance coverage.

For all your home, auto and other insurance needs, please contact Zawada Insurance Agency. We work to give you comprehensive coverage at a competitive price.

Zawada Insurance Agency, Inc. is a family-owned and operated independent insurance agency, located in Worcester, Massachusetts, serving central Massachusetts and beyond.

Business Owners Insurance: Are You Covered?

If you’re a plumber, electrician, HVAC installer or any kind of professional contractor, you may be eligible for a Business Owners Policy (BOP). This policy could include general liability, workers’ compensation, commercial auto insurance and other types of coverage.

General Liability Insurance

This is perhaps the most important type of coverage for a professional contractor. If there is an accident in the home where you’re performing work—whether it’s on pipes or electrical wires, for example—this will protect you from lawsuits and other liabilities.

Workers’ Compensation Insurance

If one of your employees is injured while on the job, this coverage will help cover medical costs as well as part of the wages lost while the employee was out sick or hurt. This is useful for industries that require a great deal of physical labor, which increases the risk of accidents.

Commercial Auto Insurance

There are special coverages for the vehicle you use for your business—extending to commercial autos, trucks and trailers. There are many options to choose from with this form of coverage, including liability and physical damage. Rates may also be adjusted according to the season. For example, if your business doesn’t do as much work during the winter, you may not use your company vehicle very much, so your rates might reflect this.

Business Interruption Insurance

Some Business Owners Insurance policies include coverage in cases where you’ve had to lose revenue because for, whatever reason, your business was out of operation. For example, if there’s a lawsuit pending against your business or a weather event forces you to halt operations, you would be covered.

Types of Businesses Eligible for Business Owners Insurance


What types of professionals may need these kinds of insurance? If you’re in the plumbing industry, you should consider getting insurance if you’re a contractor, pipe fitter, and septic tank or sprinkler installer.

Building Contractors

If you’re a home builder or developer, remodeler or any type of handy person charged with fixing or making changes to residential homes, you too would be eligible for Business Owners Insurance. Builder’s Risk Insurance is also an important type of insurance for this industry. It covers equipment used in construction projects, as well as the cost of extra materials. It also covers you for the unexpected.  

HVAC Installers

For an HVAC contractor, General Liability Insurance is the most important policy to get. If there are lawsuits because of damage to the property caused by moisture or installation issues, even injuries that resulted from work you did, General Liability Insurance will cover it.


While electricians are necessary to repair power lines or install the electrical infrastructure of new buildings, there is still a high rate of risk in this profession.  Electricians often have to deal with live wires, circuits and high voltage. Bodily injury is a major concern, so getting the right types of insurance will protect you from high liability costs.

For all of the above professions, as well as other types of contractors, Zawada Insurance Agency will work with you to find the best coverage to protect your company. In future blogs, we’ll go into even more detail about the types of coverages unique to various industries.

For more information on insurance for business owners, please contact Zawada Insurance Agency. We work to give you comprehensive coverage at a competitive price.

Zawada Insurance Agency, Inc. is a family-owned and operated independent insurance agency, located in Worcester, Massachusetts, serving central Massachusetts and beyond.