Contractors are in high demand in Massachusetts. Constructions projects ranging from homes and condos to prominent skyscrapers are in the works and need the skilled experience of a talented contractor. However, with this responsibility comes risk. Workplace injuries, theft, damage to the building, and other situations can all lead to expensive lawsuits and losses. You require contractors insurance to protect your business.
With a wide variety of risks facing contractors, you need a wide range of protections. Most contractors will benefit from these common coverages:
General Liability Insurance – If a person gets injured on the work site, a falling beam damages the neighbor’s property, or the finished product is faulty, you could be held liable for the damages and forced to pay for repairs and medical care. General liability coverage helps to protect your Massachusetts business and your personal assets, providing payments and lawsuit protections up to your policy limits.
Builder’s Risk Insurance – When a project is under construction, it is a time of great financial risk. If there is a fire or damage to the unfinished structure, you could lose all the money you spent on materials, and your property insurance may not cover your on-site equipment. Builder’s risk insurance will help to cover the building in progress, materials, and equipment up until the project’s completion.
Commercial Auto Insurance– Contractors work usually requires vehicle assistance to get to job sites and transport equipment, materials, and plans. Including a commercial auto policy in your contractors insurance will help to ensure you are covered in case of an accident.
Inland Marine Insurance – Goods in transit, such as your specialized equipment, are not always covered by standard auto insurance. Make sure you have enough coverage by taking out an inland marine policy to help cover your materials and equipment in transit.
Workers Compensation Insurance – Massachusetts requires all employers to provide workers compensation insurance to their employees. In the contracting business, your employees are extremely valuable and at risk. If there’s a workplace injury, workers compensation will help to pay medical bills and salary, while protecting you from lawsuits.
Umbrella Insurance – You not only face many risks, but potentially very expensive risks. While you should make sure your general liability and commercial auto insurance have sufficient coverage for the most common risks, some situations can far exceed these estimates. Umbrella insurance helps to extend your coverage, providing protection against a variety of events.
Many of your insurance coverages can be combined into a single Business Owner’s Policy. With commercial property insurance, liability coverage, and other specialized policies packaged into one, you can streamline your coverage and reduce your costs.
If you hire sub-contractors for your project and they are not properly insured, you could be held liable for their mistakes, injuries, and property damage. To avoid being financially responsible for those you hire, insist that all subcontractors have sufficient liability insurance of their own and get a copy of their insurance certificate before work begins. This simple step can provide substantial protections for your business in the event of an accident or flawed workmanship.
Contractors have to manage a wide range of risks every day. Protecting workers and jobsite visitors, managing building quality, and working with valuable equipment are all part of the job. Accidents, property damage, thefts, and other damage could cripple your business, halting construction and leaving you with no income while facing lawsuits. Massachusetts contractors need specialized insurance to protect against the myriad of risks you face. Speak with your local agent to find the right contractors insurance policy for your business.