While contractor insurance is often sold as a standard package, it's anything but standard. Due to the sheer diversity of the risks covered by such policies, it's well worth finding an insurer who takes the time to create a custom package that fits the needs of your Springfield business.
The Benefits of Custom-Made Contractor Insurance for Your Springfield Business
A Complex Package
Contractor insurance can cover a wide range of elements that are only loosely connected. As a general rule, they fall into three main categories: property (which protects you against loss or damage to your equipment and premises); liability (which protects you against claims for damages or injury to staff or clients); and completed operations (which covers you against claims for damages and injury relating to a completed building project). Of course, your needs may vary widely depending on the size of your operation and its types of projects. With an off-the-shelf package, you could risk paying too much if the coverage of one of these elements is in excess of what you need.
Optional Extras for Contractor Insurance
You may also be offered additional, non-standard features in an insurance policy. One example is business interruption, which covers you against loss of income if your business can't work on a project (for example, because of damage to equipment). Another is extra expense coverage, which pays for the cost of hiring temporary premises if yours are unusable because of a covered event. An off-the-shelf package might exclude these elements when you want them, or include them when they're unsuitable. A custom-made policy leaves you in control.
Legal & Contractual Requirements
Because this type of insurance covers several aspects, you need to distinguish between what is required and what is optional. Whether or not you're legally required to have a particular element will depend on your type of work (for example, home improvement contractor in Massachusetts do not have to carry liability insurance), so check with the state office of Consumer Affairs and Business Regulation first. Even if you aren't required by law to carry insurance, it may be a contractual obligation when working for a public body in Springfield or elsewhere. You'll also find some elements of insurance are completely optional, primarily those that protect your own interests. While you'll often find these worthwhile, you won't always get the best deal in an off-the-shelf package.
Contractor Insurance in Springfield
Given the complexity of insurance, the best option is to use an insurer who offers custom packages. That way, you'll pay a fair price for coverage that adequately protects you against the risks you face, but doesn't waste your money on features that are irrelevant or insufficient for your Springfield business.