Construction Insurance in Massachusetts

What is Construction Insurance?

Contractors who work within the construction industry are exposed to a variety of potential risks, including both liability- and property-related risks. Construction insurance policies help protect Massachusetts contractors from many of the risks they face.

Construction insurance policies are highly specialized commercial insurance policies that have been drafted to meet the unique risk mitigation needs of contractors and other businesses working in construction. Most of these policies are written as package policies that come with multiple coverages, and contractors can often customize the exact coverages in their policy to suit their particular situation.

How Are Construction Policies’ Premiums Determined?

Insurance companies consider many factors when setting premiums for construction policies. A business’ physical address, service area, type of construction and number of employees can all influence how much coverage costs. Of course, the coverages and limits chosen also usually have a significant impact on a policy’s price.

What Coverages Are Included in Construction Policies?

Since contractors can adjust the coverages in their construction policies, there’s not a single set of coverages that are included in every policy. There are, however, many construction liability insurance and construction property insurance coverages that policies commonly make available.

Some of the construction liability insurance coverages that a policy might offer include:

General Liability Coverage, which may cover common accidents resulting in third-party injuries

Owners and Contractors Protective Liability Coverage, which may cover damage to third-party property

Professional Liability Coverage, which may cover mistaken advice that’s given to clients

Umbrella Liability Coverage, which may provide additional liability coverage

Some construction property insurance coverages that policies frequently offer are:

Commercial Property Coverage, which may cover company-owned facilities and equipment

Inland Marine Coverage, which may cover equipment and supplies while they’re being moved between locations

Equipment Breakdown Coverage, which may cover equipment against unexpected malfunctions

In addition to these, many policies also have commercial auto insurance coverage options. Most contractors have at least one work vehicle and need some form of commercial auto coverage.

What Massachusetts Businesses Need Construction Policies?

Most Massachusetts contractors and other businesses in construction should consider protecting themselves with a construction policy. Not having a policy in place can leave a business dangerously exposed to risk, and some clients may not award jobs unless adequate insurance is in place.

Businesses that are unsure whether this or another form of commercial insurance is most appropriate for them should have a knowledgeable insurance agent check the National American Industry Classification System. The system classifies businesses according to the work they do, and it’s frequently used to determine whether businesses are in the construction industry. In total, the system classifies more than 1.5 million businesses as being in this industry.

Some specific types of businesses that frequently are classified as construction-related by the NAICS’ system include:

Contractors
New building construction companies
Structural construction companies
Bridge, street and highway construction companies
Land subdividers
Residential remodelers

A knowledgeable agent will likely be quite familiar with this rating system and able to quickly look up how a specific business is listed in the system.

How Can Contractors in Massachusetts Get Construction Insurance?

For help selecting construction liability insurance and construction property insurance coverages that make sense for your business, contact the independent insurance agents at Roger Butler Insurance. Our independent agents have helped many Massachusetts business get the construction insurance they need, and we’re ready to assist you. As an independent agency, we’re able to request quotes from multiple insurers and show you the best available options regardless of what company provides them.