Contractor Liability Insurance Boston MA – What You Need to Know
If you are looking for contractor liability insurance in Massachusetts, you should consider contacting an independent insurance agent. These agents have extensive experience working with contractors throughout Massachusetts and can help you determine what is the right policy for your business. Unlike an insurance agency, who will sell a specific policy, an independent agent can help you evaluate all the options and determine which one fits your needs the best. If you need to know more about contractor liability insurance in Massachusetts, contact Garrity Insurance.
Cost of contractor liability insurance in Massachusetts
While it is not required, contractor liability insurance is still essential for protecting your business. In fact, it acts as a survival plan for a contractor. It pays for legal defense fees when lawsuits are filed against you. It can be costly to purchase insurance for your contractor business, but having it on hand is worth the peace of mind it provides. Read on for more information on the costs and benefits of contractor liability insurance in Massachusetts.
Coverage provided by general liability insurance policy
In Massachusetts, the business owners must follow certain requirements, which govern their obligations to the public. For example, businesses that operate on premises must be covered by general liability insurance Boston ma to protect themselves from third-party claims, such as libel and slander. Moreover, it is a must for Boston, MA businesses to have this insurance coverage, as it provides protection against unexpected expenses resulting from accidents and lawsuits.
Exclusions from policy
One of the most important factors when purchasing a contractor liability insurance policy is understanding the specific exclusions. For example, exclusion (j)(6) applies to repairs of defective work that occurred during construction. Another exclusion, “products-completed operations hazard,” covers damage caused to property after the work is completed, abandoned, or ceased operations. This exclusion is more restrictive than the ISO GL pollution exclusion.
Limits of policy
A contractor’s general liability insurance policy typically carries limits of $1 million per occurrence and $2 million in aggregate, depending on the insurance company. These limits may be negotiated, as the carrier may apply different labels to the insurance form. An additional policy, called an excess policy, can be purchased by contractors who need to meet higher coverage limits. However, such an excess policy does not cover deductibles. Fortunately, there are many ways to negotiate your contractor liability insurance policy limits, and these tips can help you choose the right policy.
Explanation of deductible
If you’re a contractor in Massachusetts, you’ll need to obtain contractor liability insurance. The kind of coverage you need depends on your business, type of work, and location. For instance, a painter in Springfield will require different coverage than a general contractor in Boston. Moreover, the premiums for this type of insurance are usually tax-deductible. However, make sure to consult a tax professional to understand the deductible amount.