Contractor Insurance in Massachusetts

by Charles River Insurance on Oct 13, 2022 7:12:50 PM


Massachusetts-based contractors working for small businesses are prone to possible risks, including those related to liabilities and properties. Equipment malfunction, loss of construction tools, and physical injuries are just a few of these risks. With regard to small business insurance in Massachusetts, construction supervisors are required to be officially licensed. In this article, we’ll explain insurance for contractors as well as how and where you can find this coverage.

What Is Contractor Insurance, and Am I Eligible?

Contractor insurance, similarly known as builders’ insurance or construction insurance, is a blanket term that refers to a combination of several business coverages. Most policies related to contractor insurance are package policies that offer a specialized type of commercial insurance specifically geared for contracting businesses. Contractors can adjust the liabilities covered by their package policies.

All types of contracting businesses face operational risks that might result in lawsuits from third parties without the protection of contractor or construction insurance policies. In terms of contractor insurance, Massachusetts general and artisan contractors must ensure that they choose affordable and dependable insurance policies to safely continue business operations.

Insurance for Plumbers

Plumbers working in Massachusetts should have contractor insurance to protect against risks on the job, including gas lines and leaks, steam burns, and electric hazards.

Insurance for Electricians

Electricians with operations in Massachusetts also need contractor insurance to cover potential hazards they may encounter, including live wires, active circuits, and specialized equipment.

Construction Insurance for Handymen and Carpenters

Lastly, Massachusetts-based construction workers, handymen, and plumbers require contractor insurance for protection against health and safety risks like manual handling injuries or asbestos and saw dust exposure.

Types of Small Business Insurance

There are many different types of contractor insurance and small business insurance policies. Each policy comes with its own set of coverages, but most usually make accessible a wide range of protections, some of which are listed below.

Commercial Vehicle Coverage

Company vehicles, such as work vans and delivery trucks, are covered by commercial vehicle insurance or commercial auto insurance. These types of policies assist in covering accidents involving business-owned vehicles if any employees are liable. Commercial vehicle insurance is important for Massachusetts contractors as it safeguards workers from excessive property damage fees and medical costs.

Generally, commercial vehicle insurance covers bodily injuries, third-party property damage, comprehensive physical damage (for theft, vandalism, and fire), and collision coverage. This insurance policy is crucial for small Massachusetts businesses that own, rent, or lease company vehicles.

General Liability Insurance

General liability insurance helps safeguard businesses from “general” claims of damage caused by a product or service. Common business risks covered by general liability insurance include customer bodily injury and property damage as well as advertising injury, which means that these policies assist small businesses in dealing with excessive lawsuit costs. General liability also helps businesses qualify for leases and contracts.

For Massachusetts contractors, general liability covers many claims at work, including reputational harm for libel and slander accusations. However, not all claims are covered by general liability, such as work-related injuries experienced by employees and business property damage, which are covered by other types of insurance policies.

Business Owner’s Policy (BOP Insurance)

Packaged policies like a business owner’s policy (BOP) enable Massachusetts-based small business owners to easily resolve issues related to property damage, income loss, and liability claims. A BOP is a combination of business property and business liability insurance condensed into one policy, and it is usually offered at a premium less in value compared to individual packages. A BOP protects against risks like peril and business interruption, and many BOPs offer additional coverages for crime, merchandise spoilage, forgery, and other issues.

Ready To Purchase Contractor’s Insurance?

Overall, contractor insurance in Massachusetts is important for small business contractors seeking financial protection for various risks faced on the job. Contact us for more information or get a quote for contractor’s insurance today!

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