Construction Insurance Massachusetts – What You Need to Know
If you are considering opening a construction company in Massachusetts, you may be wondering what the state’s economic trend is. The state’s unemployment rate is an excellent indicator of the economy, since a lower unemployment rate means more job opportunities and increased business opportunities. A low unemployment rate means that insurance rates are lower than average, so you should feel comfortable with your decision to expand in Massachusetts. In addition, construction companies should consider how much construction insurance Massachusetts will cost if you do decide to open a branch in the state.
Builders risk insurance is a form of property insurance
If you are currently building or renovating a building, builders risk insurance may be your best bet. While general liability insurance protects you from third-party liability, this type of insurance covers the costs that occur during the construction process. Examples of such expenses include damages to third-party property, pollution, and debris removal. If you are unsure of what is covered under this policy, ask your insurance agent for a quote.
The amount of coverage that is included in a builders risk insurance policy depends on whether the property will be repaired or completely replaced. It also depends on the type of building and its size and operating capacity. Coverage for raw construction material, electrical equipment, and mechanical equipment is normally included in the insurance policy. You can also extend the coverage to cover the cost of new laws and delays associated with compliance. The amount of coverage is typically based on a fixed percentage of the cost of building the property.
It includes general liability coverage
A Massachusetts contractor must purchase general liability insurance to protect his business assets. According to the National Center for State Courts, the cost of a lawsuit can be as high as $54,000. This amount could bankrupt a small business. Construction workers, for example, are particularly at risk because they are often working on public property. This type of insurance is also necessary for those who lease commercial property. In addition, general liability coverage is required by certain industries like real estate.
There are many different types of policies that construction workers must purchase. A construction policy will protect the business from many different types of risks. It should also include general liability coverage, which protects the contractor’s personal assets in the event of a lawsuit. Other important coverages include workers compensation and commercial auto insurance, which protects the contractor’s vehicles. The best policy to buy depends on your company’s needs and budget.