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.