Contractors Insurance from Massachusetts Specialists

Roger Keith & Sons

What is contractors insurance?

Contractors are exposed to a myriad of risks, ranging from stolen equipment to injuries at worksites. To help Massachusetts construction and trade businesses shield themselves against many such risks, there’s contractors insurance.

Contractors insurance offers specialized coverages that are tailored for construction and trade businesses. Policies normally have both property and liability protections, which can be customized.

Who needs contractor liability insurance in Massachusetts?

Most construction companies and tradespeople in Massachusetts should have contractor liability insurance. The legal costs from just one accident could be financially ruinous if there’s not insurance.

Policies that include both contractor liability insurance and property insurance are often purchased by:

• General contractors and subcontractors
• Residential developers and commercial developers
• Residential and commercial remodeling companies
• Demolition, marine construction, and other specialized crews
• Roofers, plumbers, electricians, carpenters, and HVAC techs
• Landscapers that work on larger projects

While these contractors can generally benefit from having a contractors policy, it’s important to tailor a policy for a particular type of work. This is something that an insurance agent who specializes in contractor liability insurance can help with.

What protections are available through contractors policies?

There are many coverages that companies and tradespeople might include in their contractors policy. A few common protections that many get are:

• General Contractor Liability Insurance: Might cover routine accidents resulting in injuries or property damage involving third parties. Normally includes accidents occurring at a facility and at worksites, when a customer, vendor, trespasser, or other non-employee is harmed.
• Commercial Auto Insurance: Might cover a contractor’s trucks, vans, or other work vehicles. Normally includes coverage against accident liability and vehicle damage.
• Commercial Umbrella Insurance: Might cover legal claims and settlements that go beyond the limits of other contractor liability coverages.
• Commercial Property Insurance: Might cover a contractor’s office building, garage, storage facility, or other structure. This may also cover equipment, tools, and materials when kept at a facility.
• Builders Risk Insurance: Might cover risks unique to construction projects. This could include protection for completed work, as well as equipment, tools, and materials when they’re at a worksite. 
• Inland Marine Insurance: Might cover equipment, tools, and materials when they’re being transported to or from worksites.
• Equipment Breakdown Insurance: Might cover unexpected breakdowns of essential equipment, often including needed emergency repair costs to reduce construction delays.

What types of work are covered by contractors policies?

Contractors policies typically can cover a broad range of construction and trade work, including new construction, renovations, remodels, installations, and repairs. An agent who’s knowledgeable in contractors policies can confirm that a chosen policy covers the type of work a contractor does.

Can contractors policies cover multiple worksites?

Yes, many contractors policies can provide coverage across multiple worksites. Again, a knowledgeable agent can make sure that a policy meets the specific needs of a construction or trade business.

Do general contractor policies extend coverage to subcontractors?

Coverage for subcontractors under a general contractor’s policy can vary. Some policies might extend coverage automatically or when subcontractors are listed as additional insureds. Other policies may not extend coverage to subcontractors, or some general contractors may choose to not extend their policy’s coverage even if it’s possible to.

Do contractors policies include construction bonds?

Bonds are normally purchased separately from a contractors policy. Insurance companies that offer contractors policies frequently offer construction bonds, however. Insurance agents familiar with contractors policies can assist with bonds.

How can Massachusetts construction and trade businesses get contractors insurance?

If you need contractors insurance for a construction or trade business, reach out to the independent insurance agents at Roger Keith & Sons. Our Massachusetts agents have worked with many contractors, and we’ll make sure you find a policy that protects your business well.