Construction Insurance in Massachusetts | Amplified Insurance Partners
construction insurance

Construction Insurance

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What is construction insurance?

Construction insurance is specialized commercial insurance for Massachusetts contractors. Most policies provide coverage for equipment, vehicles, accidents and other risks.

What Massachusetts contractors should carry construction policies?

Most Massachusetts businesses that operate within the construction industry ought to have a construction policy. Contractors of all types can usually benefit from this form of insurance.

Some examples of different contractors that commonly purchase construction policies include:

  • General contractors
  • Heavy contractors
  • Artisan contractors
  • Homebuilders
  • Residential construction companies
  • Commercial construction companies

Policies can generally be adapted to suit the needs of contractors ranging from carpenters to large commercial crews.

Because policies can be adjusted so much, contractors should work closely with an insurance agent who knows these policies well when selecting coverages. A knowledgeable agent will be able to review a contractor’s particular risk exposure, and make informed recommendations regarding coverages.

construction insurance Massachusetts

What coverages are included within construction policies?

These policies typically include a combination of construction property insurance protections and construction liability insurance protections. Property protections tend to guard assets against damage and loss, and they can extend to many different types of assets. Liability protections tend to guard against instances where a contractor is responsible for harm, which could include injury, property damage or other harm.

Some construction property insurance protections that policies frequently make available are:

  • Building Coverage: May cover owned offices, warehouses and other buildings
  • Inland Marine Coverage: May cover equipment, tools and supplies in transit
  • Builders Risk Coverage: May cover equipment, tools and supplies at worksite
  • Mobile Equipment Coverage: May cover forklifts, excavators, backhoes and similar
  • Extra Expense Coverage: May cover the cost of renting space following a disaster

Some construction liability insurance protections that policies normally make available are:

  • General Liability Coverage: May cover basic accidents at facilities or on worksites
  • Professional Liability Coverage: May cover errors made in employees’ work
  • Employee Practices Liability Coverage: May cover employment discrimination claims
  • Commercial Umbrella Coverage: May provide additional protection against lawsuits

Do contractors need workers compensation coverage?

The purpose of workers compensation is to give employers and employees substantial protection against workplace injuries, which certainly are a risk in the construction industry. The coverage often pays medical costs and some lost wages if an employee is significantly harmed.

The coverage is generally required when Massachusetts businesses have employees. Requirements are a little more complicated when businesses hire subcontractors, but the coverage can still be legally necessary for some subcontracting situations. 

Most contractors are required to carry workers compensation for their employees and/or subcontractors. An insurance agent who specializes in construction liability insurance will be able to help determine whether workers comp is indeed necessary, and help find a policy that provides suitable protection.

Do contractors need construction and contract bonds?

Contractors who complete larger projects may be required to purchase construction and contract bonds. Residential developers, commercial construction companies, roadwork companies and others sometimes need bonds. 

The purpose of bonds is broadly to ensure another party is compensated if a contractor fails to complete a project as promised. There are many different types of construction and contract bonds that could be needed:

  • Bid Bonds: Normally ensures that contractors who bid on projects will indeed start the project if they’re awarded it
  • Performance Bonds: Normally ensures that contractors who start a project will complete it as agreed upon
  • Pavement Bonds: Normally ensures that contractors who start a project will pay their employees and subcontractors

There are still other bonds available. An experienced agent can help contractors find the types of bonds that they need when purchasing an insurance policy.

construction insurance Massachusetts

How can contractors in Massachusetts get quotes for construction insurance?

For help finding construction insurance, contact the independent insurance agents at Amplified Insurance Partners. Our agents are well-versed in both coverages and bonds, and we have the expertise to get your Massachusetts contracting company the right protections.

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