Insurance is essential for contractors operating in Massachusetts. This guide outlines insurance requirements, costs, and coverage options based on our analysis of actual quotes from leading carriers.
Structure your success by learning about construction liability insurance.
General Liability Insurance for Massachusetts Contractors
General liability insurance protects your contracting business from third-party claims of property damage and bodily injury. Based on our analysis of over 800 contractor quotes, here are the typical costs for Massachusetts contractors:
| Revenue Size | Average Premium | % of Revenue | Favorable Premium | Potential Savings |
|---|---|---|---|---|
| $500K | $7,580 | 1.5% | $4,830 | 36% |
| $1M | $12,330 | 1.2% | $9,650 | 22% |
| $2.5M | $41,700 | 1.7% | $24,500 | 41% |
These premiums assume:
- Clean claims history (5+ years without incidents)
- Standard $1M/$2M coverage limits
- Mix of residential and commercial work
- Approximately 10% subcontractor costs
Worker’s Compensation Insurance for Massachusetts Contractors
Worker’s compensation insurance is mandatory for Massachusetts contractors with employees. Based on our analysis, Massachusetts contractors typically pay around $4,060 per employee annually for workers’ compensation coverage.
For Massachusetts contractors, typical workers’ compensation costs per $100,000 of payroll average $6,930, making it one of the more affordable states for this coverage.
Key factors affecting premiums:
- Employee classification codes
- Total payroll
- Claims history
- Safety programs
- Experience modifier rating
Common contractor classification codes in Massachusetts:
- Code 5606 (Project Management): $2-4 per $100 of payroll
- Code 5645 (Residential Construction): $7-11 per $100 of payroll
- Code 5403 (Commercial Construction): $11-15 per $100 of payroll
Additional Business Insurance for Contractors in Massachusetts
1. Commercial Auto Insurance
- Annual cost: $1,000-$4,000 per vehicle
- Required for business-owned vehicles
- Typical limits: $500K-$1M
- Protects against accidents during business operations
- Covers both owned and leased vehicles
2. Tools & Equipment Coverage
- Cost: $1,500-$5,000+ annually
- Coverage: $15K-$50K typical limits
- Protects both owned and rented equipment
- Coverage extends to all jobsites
- Includes theft, damage, and vandalism protection
3. Commercial Property Insurance
- Premium range: $2,000-$20,000+ annually
- Based on property value and location
- Covers buildings, contents, and equipment
- Protection against fire, theft, and natural disasters
- Options for business interruption coverage
4. Builder’s Risk Insurance
- Cost: 0.15-0.75% of project value
- Project-specific coverage
- Duration-based policies
- Protects structures under construction
- Coverage for materials and equipment on-site
5. Contractor License Bonds
- Protects clients against contract defaults
- Required for certain projects
- Premium: 1-3% of bond amount
- Based on credit and experience
- Guarantees compliance with regulations
Get Massachusetts Contractor Liability with ContractorNerd
ContractorNerd makes insurance simple and data-driven for Massachusetts contractors through:
- Instant online quotes from top-rated carriers
- Side-by-side coverage comparisons
- Massachusetts-specific expertise
- Streamlined application process
- Ongoing policy management support
- Claims advocacy when needed
Our team of contractor insurance specialists helps you:
- Optimize coverage levels for your specific risks
- Find competitive rates through our carrier network
- Bundle policies for additional savings
- Ensure compliance with state regulations
- Manage certificates and policy updates
Contact ContractorNerd today for tailored quotes and expert guidance on your contractor insurance needs.