General contractor insurance in Massachusetts
Learn about business insurance requirements and the most common policies for general contractors in Massachusetts.
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What are the most common policies for general contractors in Massachusetts?
General contractors may need different types of insurance depending on the work they do and their client contracts. These policies are the most popular for general contractors in Massachusetts, and often provide the best coverage for their insurance needs.
General liability insurance
This policy covers basic risks, such as a client who trips over your toolbox and suffers an injury. Bundle it with commercial property insurance for savings in a business owner's policy.
- Customer bodily injuries
- Damaged customer property
- Product liability insurance
Business owner's policy
A BOP bundles general liability coverage and commercial property coverage at a discount. It's often the most cost-effective type of insurance for general contractors.
- Accidents that injure clients
- Client property damage
- Damage to your building or its contents
Workers’ compensation insurance
Most states require workers’ comp for general contracting businesses that have employees. It also protects sole proprietors from work injury costs that health insurance might deny.
- Employee medical expenses
- Disability benefits
- Employee injury lawsuits
Commercial auto insurance
This policy covers the cost of injuries and property damage in accidents involving a general contractor’s vehicle. It can also pay for repairs to vehicles damaged by weather or vandalism.
- Legal costs from an auto accident
- Property damage caused by your vehicle
- Vehicle theft and vandalism
Contractor's tools and equipment insurance
This policy helps pay for repair or replacement of a contractor’s saws, nail guns, hammers, and other tools if they're lost, stolen, or damaged.
- Hand tools and power tools
- Scissor lifts and other equipment
- Other items brought to worksites
Professional liability insurance
This policy is also called errors and omissions insurance (E&O). It covers legal fees when a general contractor is sued over a mistake, such as using the wrong materials.
- Accusations of negligence
- Failure to complete a project
- Work mistakes and oversights
Surety bonds
A bond guarantees reimbursement for the client if a general contractor fails to fulfill the terms of a contract or adhere to building codes. Common bonds include bid bonds, performance bonds, and payment bonds.
- Compliance with laws
- Incomplete jobs
- Breach of contract
Builder's risk insurance
This policy covers structures in progress and materials, often paying for damage caused by fire, vandalization, and non-severe weather events.
- New construction
- Building renovation
- Worksite theft and vandalism
Contractors pollution liability insurance
Contractors pollution liability covers costs related to pollution, such as a lawsuit alleging harm caused from exposure to silica dust on a construction job site. It's sometimes referred to as environmental insurance.
- Pollution events
- Spills during transport
- Lawsuits over contaminants
What insurance is required for general contractors in Massachusetts?
General contractors, and some handymen, in Massachusetts, from Boston to Cambridge, must carry the following insurance policies to comply with county or state laws:
Workers' compensation insurance
If you own a construction or home improvement business in Massachusetts with one or more employees, your business is required to carry workers' compensation insurance.
Workers' compensation insurance covers medical costs and disability benefits when an employee is injured on the job or develops an occupational illness. It's a key policy for the construction industry and related professions, such as carpenters, electricians, and plumbers.
Sole proprietors may not need workers' comp for their Massachusetts general contractor license, but it's still a good idea to carry this insurance coverage. Personal health insurance doesn't cover work-related personal injuries, so it can save you from out-of-pocket medical expenses.
Commercial auto insurance
Business vehicles in Massachusetts must be covered by commercial auto insurance.
Commercial auto insurance protects vehicles owned by your general contracting company. It covers property damage and medical bills in an accident, along with vehicle theft, weather damage, and vandalism.
How much does insurance cost for general contractors in Massachusetts?
General contractors in Massachusetts who buy policies from Insureon pay an average premium of:
General liability: $100 per month
Workers' compensation: $48 per month
Commercial auto: $107 per month
Several factors affect the cost of general contractor insurance, including:
- Type of building construction, such as townhouses, multifamily homes, or offices
- Business property and equipment
- Business income and size
- Years of work experience
- Policy limits and deductibles
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When do you need a general contractor business license in Massachusetts?
In Massachusetts, from Boston to Springfield, general contractors must be registered and licensed to work on projects worth more than $1,000. The license requirements vary depending on the type of work you do.
There are three classes of construction supervisor's licenses (CSL), which determine the size of projects the licensee can undertake:
- Unrestricted CSL: Allows you to work on all types of buildings that are less than 35,000 cubic feet.
- Restricted CSL: Lets you supervise all forms of construction work on one and two-family dwellings and their accessory buildings.
- Specialty CSL: Enables you to specialize in a specific construction activity like masonry, roofing, and window installation.
Additionally, you might be required to register as a home improvement contractor (HIC). This isn't the same as a CSL, and you may need both to work on certain jobs. An HIC is required for contractors that solicit, bid on, or perform residential contracting on existing one- to four-unit, owner-occupied residences.
Licensure requirements include:
- 18 years of age to apply
- Three consecutive years of on-the-job experience
- Passing all required exams: HIC and/or CSL
- Complete application with appropriate fee
View details at Mass.gov.
How do I get Massachusetts contractors liability insurance?
Insureon’s industry-leading technology helps general contractors in Massachusetts save time and money shopping for business liability insurance and property insurance. Start an online application to get free quotes from top-rated U.S. insurance companies.
To get through the application quicker, have this information ready:
- Workforce details, such as the number and types of employees
- Current and projected revenue
- Business partnerships
- Insurance history and prior claims
- Commercial lease insurance requirements
A licensed insurance agent can answer your questions and help you find the right, most affordable coverage for your Massachusetts business. Small business owners can get their certificate of insurance shortly after they apply for quotes and pay for a policy.