Constructing and working on buildings comes with a lot of responsibility, and that responsibility exposes contractors to various risks. Liability lawsuits, injuries and damaged equipment are just some of the perils that plague contractors in Massachusetts. Getting a robust contractors insurance policy is one of the ways contractors can help protect themselves.
Contractors insurance is a commercial insurance that’s been specifically adapted to help manage the risks faced by contractors. Most contractors policies combine several coverages together so that the policy can offer protection against a range of possible risks.
Most Massachusetts contracting businesses can benefit from having a contractors policy, and many may be required to get one. Without a policy in place, contractors may have a hard time obtaining permits or finding clients who will hire them.
General contractors almost always need policies, for they’re exposed to great amounts of risk. No matter whether they’re in residential, commercial or mixed-use construction, general contractors undertake major projects that can result in costly lawsuits and other issues if something goes wrong.
Artisan contractors, at least in some cases, may not be exposed to as much risk as general contractors. Nevertheless, plumbers, electricians, carpenters, roofers and even painters can be held responsible for accidents and/or have equipment stolen. Therefore, these and other artisan contractors may still want a policy even if their risk exposure isn’t the same.
In a few cases, artisan contractors who aren’t in the construction industry might still benefit from a contractors policy. Exterminators, interior decorators and other skilled tradespeople should review their particular situation with an informed insurance agent to see whether this is the right type of policy for them.
In order to meet different contractors’ varying needs, insurers offer different coverage combinations in their contractors policies. In a particular policy, contractors might find the following property insurance protections and contractors liability insurance protections:
As is generally true with liability coverages, the contractors liability insurance coverages included in a policy will normally help pay for legal fees and settlements associated with covered claims. Coverage usually isn’t dependent on whether a contractor ultimately wins or loses the case.
Workers compensation coverage, which normally covers on-the-job injuries, usually isn’t included in contractors policies. Instead, most contractors that need this coverage purchase it as a separate policy. Insurance agents who specialize in contractors policies often also can help with workers compensation policies.
Contractors policies range in price, and it’s impossible to give a single quote for every contracting business in the state. Some of the factors that might affect how much a particular business pays for coverage include the type of work the business is in, the size of the business, the equipment that the business uses and the location of the business’ jobs.
Businesses that want an accurate idea of how much a policy will cost them should talk with an independent insurance agent who can get quotes from several insurers. A selection of quotes based on a business’ particular situation will reveal how much a contractors policy will cost that specific business.
To speak with an independent insurance agent who’s familiar with the nuances of contractors insurance policies, contact Paul T. Murphy Insurance. Our independent agents have helped many Massachusetts contracting businesses find the coverage they need, and we’d be happy to assist your business as well.