Builders Risk Insurance in Massachusetts

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Builders Risk Insurance in Massachusetts

What is builders risk insurance?

When a construction project is begun, there are any number of issues that could delay or entirely cease work on the project. In case something prevents a project from being completed on time, Massachusetts contractors and other invested parties may want builders risk insurance.

Builders risk insurance is specialized protection for construction projects that are underway. Should a covered cause delay or stop a project’s progress, the insurance may help all stakeholders.

builders risk insurance Massachusetts
builders risk insurance Massachusetts

Who in Massachusetts should purchase builders risk coverage?

Any stakeholder involved in a Massachusetts construction project might benefit from builders risk coverage. Developers, general contractors, subcontractors, lenders, and owners may want coverage.

Contractors are most often the stakeholder that actually purchases coverage, as they’re most likely to be held liable for work stoppages. Contractors might purchase coverage of their own volition, or they’re sometimes compelled to by the terms that a lender or property owner insists on. Less often, lenders or owners could themselves purchase coverage.

What assets can contractors insure through builders risk coverage?

Builders risk coverage can usually extend to supplies, equipment and completed work that sustains damage. Any coverage for supplies or equipment is usually limited to only when the items are at the project’s location, and specific terms can vary between policies.

In most cases, contractors can get the following supplies and equipment covered:

  • Large and heavy equipment
  • Specialized equipment
  • Common tools
  • Specialized tools
  • Supplies and materials
  • Structures in progress

Any protection for structures that are in progress might apply only to specific structures, or it might extend to all structures on the project site. Contractors should review this and all other details of a policy closely with a specialized insurance agent. An agent who knows builders risk coverage well should be able to help contractors find coverage for the equipment, tools, supplies and structures that they need protected.

What kinds of projects can contractors insure with a builders risk policy?

Most large construction projects can be insured through a builders risk policy. Policies are readily available for residential developments, multifamily buildings, office buildings, retail stores, factories and other commercial construction projects. Policies are also generally available for public works projects, additions and remodels, and certain major landscaping and hardscaping work. 

Policies are purchased for the construction of single-family homes much less often, and finding a policy that’ll cover the building, adding onto or remodeling of a single-family house can be difficult. Homeowners or contractors who want builders risk for a house can check with a knowledgeable insurance agent to see whether any coverage is available.

builders risk insurance Massachusetts

What risks are covered by a builders risk policy?

The exact risks that a builders risk policy covers are determined by that policy’s terms, conditions and exclusions. Depending on these, policies might cover risks such as:

  • Theft
  • Vandalism
  • Fire
  • Water Damage
  • Weather
  • Other risks

A named perils policy will specifically note the risks that it protects against. An open perils policy will usually cover risks except any that are specifically excluded. In most cases, open perils policies offer more extensive protection than closed perils policies.

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How can contractors (and others) in Massachusetts get builders risk insurance?

Builders risk is most frequently purchased alongside other coverages as part of a package policy, which gives contractors an efficient yet flexible way to meet their insurance needs. Less frequently, the coverage might be obtained through a standalone policy or an endorsement. An endorsement adds a narrowly defined protection onto another insurance policy.

If you need help insuring Massachusetts construction projects that are or will soon be underway, contact the independent insurance agents at Platinum Insurance. Our agents will work closely with you to make sure all appropriate protections, including builders risk insurance, are in place while you’re working on the project.