What is Contractors Insurance?
Contractors are exposed to a range of potential risks. Injuries, lawsuits and equipment damage are just some of the perils that they can face. Contractors insurance policies help protect Massachusetts contractors from many covered risks like these.
Contractors insurance policies are specialized commercial policies that are designed specifically for contractors. Most policies combine several difference coverages together so that they can offer robust protection.
What Businesses in Massachusetts is a Contractors Policy Right For?
Both general and artisan contracting businesses in Massachusetts may benefit from having a contractors policy.
General contractors frequently face lots of possible risks that could be extremely expensive to recover from. Vandalism to major equipment can cost a small fortune to fix, and liability lawsuits stemming from a mistake could potentially result in six- or seven-figure costs. Because they’re often exposed to big risks, general contractors normally need a policy that offers big protections.
Artisan contractors might not always be exposed to the same amount of risk as general contractors. Some artisan contractors do face major potential risks, though, and those that don’t usually are ill-equipped to handle a loss of any substantial size. Smaller HVAC, plumbing, carpentry, electrician and roofing businesses might have fewer resources at their disposal, and therefore, need extra insurance protection.
In some situations, both general and artisan contractors who don’t have at least basic levels of insurance can have a hard time securing work. Certain clients won’t hire uninsured businesses, which limits the number of jobs that are available to improperly covered contractors.
What Coverages Do Contractors Policies Offer?
In order to meet the needs of particular contracting businesses, insurance companies usually include several standard and optional coverages in their contractors policies. Some of the coverages that a policy might have are:
- General Liability Coverage, which might cover common accidents and some lawsuits
- Contractors liability Coverage, which might cover work-related errors
- Commercial Property Coverage, which might cover company-owned buildings
- Contractors Equipment Coverage, which might cover company-owned equipment
- Inland Marine Coverage, which might cover equipment and materials while in transit
- Commercial Auto Insurance, which might cover company-owned vehicles
An insurance agent who specializes in contractors policies will be able to check exactly what coverages are available to a particular contracting business. They’ll also have the expertise necessary to explain how each coverage offered could help protect a business.
Do Contractors Policies Provide Workers Compensation Coverage?In Massachusetts, most contractors policies don’t come with workers compensation coverage. Instead, businesses that need this usually purchase a workers compensation policy in addition to their contractors policy. Insurance agents who are familiar with contractors policies usually will also help with any workers compensation coverage needs.
How Much Do Contractors Policies Cost?
As is true with other types of insurance policies, the premiums charged for contractors policies are based on many factors and can vary. Some of the items that might influence how much a policy costs include:
- Where a contracting business is located
- What type of contracting work a business is involved in
- How large the jobs a business does are
- What coverages and limits a business selects
- Whether a business has recently filed insurance claims
An independent insurance agent can request quotes from several insurance companies to help businesses find out precisely how much a policy that suits them would cost.