Contractors Insurance in Massachusetts

What is Contractors Insurance?

Contractors insurance is designed to financially protect your business when accidents happen.

Why Do You Need Contractors Insurance Coverage?

Because contractors perform so many types of tasks, there are many risks a contractor faces. In addition to jobsite accidents leading to injuries and property damage, you also must deal with the possibility of fire, storm damage, theft, damage to your equipment, and more. Contractors insurance is designed to provide broad-based coverage for these and other risks, combining the many insurance policies you need for comprehensive protection into a single package.

Avoiding Risk with a Strong Massachusetts Insurance Policy

When involved in a risky job, you must take precautions to protect yourself, your employees, bystanders, and your business. Lawsuits and medical expenses can quickly cripple your business. With contractors insurance, you can have comprehensive and broad-based coverage for the many risks you and your company face on a daily basis.

What Coverages are Included in a Contractors Insurance Policy?

Contractors package policies can be tailored to meet the individual needs of your business, based on the type of jobs you do and other factors. Some policies you may need include:

- General Liability
- Property Damage Liability
- Bodily Injury Insurance
- Workers Compensation
- Disability Insurance
- Business Interruption Coverage
- Commercial Auto Insurance
- Inland Marine Coverage
- Equipment Floaters
- Product Liability
- Completed Operations/Product Coverage
- Professional Liability
- Pollution Insurance

Your insurance agent can help you look at your unique situation to determine what policies are right for you.

Are Subcontractors covered in Massachusetts?

The state of Massachusetts requires all businesses with employees to have workers compensation insurance. This important coverage helps cover medical expenses and salary compensation for employees injured on the job. Because of the risky nature of contracting work, premiums for your contracting business may seem expensive at first, but it is essential coverage that you are required to have.

Subcontractor Coverage

Subcontractors can be a great benefit to your business, providing expertise in specific areas. This can help your job get done quickly and to the highest of standards. However, subcontractors may be considered your employees under the law, further driving up your workers compensation costs. To avoid this expense, you should be sure that all subcontractors that you hire have their own workers compensation coverage, which will eliminate the need to include them on your policy.

Subcontractors can also introduce additional risk in the form of errors they may make on your project. This can compromise the final product, as well as cause injuries or other damages. If this occurs, you may be held legally liable. In addition to making sure your subcontractors are property insured, you may wish to purchase an independent contractor liability policy. This will help to cover work done by your subcontractors, helping to pay your expenses if lawsuits occur due to their errors.

In Summary

Contractors perform a wide variety of services, working for homeowners, small businesses, corporations, and municipalities around Massachusetts. Whether working at heights, lifting materials, or operating heavy machinery, a contractor’s job is risky by nature. When accidents occur, they can cause injuries and damages, making your business liable for the expenses.