The importance of the proper insurance coverage for Contractors in Massachusetts

contractors-insuranceContractors face risks and challenges many businesses can’t dream of: workplace injuries, defective materials, weather delays, theft.  With these setbacks possible in any Massachusetts construction project, builders must ensure that they carry adequate contractors insurance.

Many contractors employ the simplicity of a Business Owners Policy (BPO), which gathers useful features in a single package for small business owners.  For a Massachusetts contractor, a typical Business Owners Policy would include:

  • General Liability: This ensures that your personal assets are protected in the event of a lawsuit.  Be realistic about your liability limits.  This is not a place to skimp and purchase the minimum required coverage if it would not cover your actual risks.

  • Workers Compensation:  Massachusetts law requires all employees to be protected by adequate workers compensation insurance.  This helps safeguard both you and your employees in the event of an accident.

  • Commercial Auto:  A contractor’s vehicles are their lifeblood.  Keep them moving with sufficient commercial auto coverage.

  • Builder’s Risk Insurance:  This covers physical damage to a building during the construction process and is often required by lenders as a condition for financing.

Contractors must also ensure that any subcontractors they employ carry sufficient liability coverage.  Ask all subcontractors to provide certificates of insurance to make sure that you are not responsible for any accidents or negligence on their part.  Likewise, it is a good idea to obtain insurance for materials, as defective materials are possible from even the most reliable suppliers and can cause enormous headaches when they happen.

For an assessment of your risks and needs, call Mackintire’s contractors insurance specialists today for a free quote and policy overview 508-366-6161.