What Massachusetts Businesses Need a Contractors Policy?
Most contracting businesses in Massachusetts should have a contractors policy. As mentioned, this includes both general and artisan contractors.
General contracting firms need insurance coverage because their work leaves them exposed to a lot of risk. Regardless of whether a firm does residential, commercial or mixed development, general contractors work on big projects where a single error could have vast implications. In many cases, general contractors aren’t even able to get jobs unless they have minimum levels of insurance because the risk is too great to be unprotected.
Insurance is just as important for artisan contractors in the construction industry who own their own small businesses or are self-employed. Plumbers, carpenters, electricians, roofers and similar professionals may not face the same level of risk as general contractors, but they’re still exposed to a significant amount of risk. Additionally, they often have fewer financial resources to address an incident with.
In some cases, artisan contractors outside the construction industry may want insurance. Interior decorators, exterminators and other skilled professionals must assess their own risk exposure and their business’ ability to withstand a potential incident. An experienced insurance agent can help with this process (as they can with contractors for the construction industry).
Are Contractors Policies Expensive?
Contractors’ policies premiums also vary. Broadly speaking, contracting businesses that are exposed to more risk pay more than those that face less risk, because with increased risk exposure comes greater protection needs. Thus, a general contractor who builds commercial buildings might expect to pay more for insurance than a roofer who only works on single-family homes.
Having a policy, however, is almost always less expensive than facing a potentially expensive claim without any coverage in place. While some businesses pay higher premiums than others, few (if any) can afford the possible cost of not getting insurance.
How Can Massachusetts Contractors Get Contractors Insurance?
Selecting a contractors policy is more involved than getting some other types of insurance. Contractors should first accurately and fully assess their business’ risk exposure, and then the should choose coverages based on their business’ needs. For instance, the contractors liability insurance chosen should be appropriate both in amount and coverage definitions for the work that a particular contractor does.
Massachusetts contractors can get help with this multi-step process by talking with an independent insurance agent from Dempsey Insurance. Our specialized agents know how to assess risk exposure and select coverages, and our agents also can compare policies from different insurers to find you the best rates.
