An independent commercial insurance broker licensed in Massachusetts is the person to call. A broker reads the insurance section, compares it to the policies you already have, and places what is missing. Morrow does that review for free. Who this is for: Massachusetts contractors and trades holding a subcontract or owner contract with an insurance exhibit they do not fully understand.
The short version
- A licensed independent broker is the one person who can both read the contract and fix the gaps.
- Most Massachusetts contracts ask for general liability, workers comp, commercial auto, and an umbrella, plus extra wording on each.
- Massachusetts law limits what a contract can make you promise. A subcontractor cannot be forced to pay for harm it did not cause.
- Workers comp is required from your first employee in Massachusetts, and general contractors check for it because they pay if your sub has none.
- Send the contract before you sign. Fixes take one day to two weeks and cost far less than a delayed start.
Who can actually help me with the insurance section?
Several people will offer. Only one can read the contract and also place the coverage.
| Who | What they can do | What they cannot do |
|---|---|---|
| Independent broker licensed in Massachusetts | Read the exhibit, compare it to your policies, add endorsements, place an umbrella, and talk to the general contractor's reviewer for you. | Give legal advice. |
| Your current agent (one insurance company) | Add endorsements and raise limits with that one company. | Shop other companies if yours says no. |
| Online insurer | Sell a basic policy fast. | Read your contract or place a large umbrella. |
| Construction attorney | Advise on the promises in the contract. | Sell insurance or issue a certificate. |
| The general contractor's office | Tell you what they will accept, and sometimes adjust a requirement. | Fix your policy for you. |
For most Massachusetts contractors the broker does 90 percent of the work.
What do Massachusetts contracts usually ask for?
The list is close to the national one. General liability (pays if your work hurts someone or damages property that is not yours), workers comp, commercial auto, and an umbrella (a second layer of coverage above your other liability policies). The extra wording is where certificates fail. Start with what insurance a construction contract needs, then check these Massachusetts details.
| Item | What Massachusetts law says | What contracts usually ask for |
|---|---|---|
| Workers comp | Required from the first employee. No headcount or hours threshold (M.G.L. c. 152). | A policy plus a waiver, which means your insurer agrees not to go after your customer to recover money it paid. |
| Commercial auto | Since July 1, 2025, every Massachusetts-registered vehicle needs at least $25,000 per person and $50,000 per accident for injuries, $30,000 property damage, and $8,000 personal injury protection. | $1,000,000 combined single limit, far above the state minimum. |
| General liability | Not required by state law for most trades. Home improvement registration requires evidence of contractor insurance with the application (201 CMR 18.02). | $1,000,000 per occurrence, $2,000,000 for the year, with your customer able to use your policy if they are sued over your work (additional insured). |
| Umbrella | No state rule. | $1,000,000 to $5,000,000 depending on the project. |
Is there anything a Massachusetts contract cannot make me promise?
Yes. Most construction contracts include indemnification, which is a promise to cover someone else's losses. Under Massachusetts law, a construction contract cannot make a subcontractor cover injury or damage the subcontractor did not cause. A clause that tries to do that is void. A clause limited to harm you did cause is fine.
Two things the law does not fix for you. First, you can still be on the hook for the other side's legal bills even when you did not cause the accident, so a broad clause is worth a lawyer's hour. Second, the law does not get you out of adding your customer to your policy. That is an insurance requirement, and it stands.
Why does the general contractor care so much about my workers comp?
Because in Massachusetts the general contractor pays if you have none. Under Massachusetts law, if an insured general contractor hires a subcontractor with no workers comp, the general contractor's insurer pays the sub's injured workers and then pursues the sub. So a Massachusetts general contractor will not let you on site without a certificate showing your own policy. See whether you need workers comp in Massachusetts.
What does it cost to close the gaps?
These are national illustrative ranges for a small contractor with a clean claims history, not Massachusetts prices. Your price depends on your trade, payroll, and the insurance company.
| Fix | Illustrative cost | Time |
|---|---|---|
| Add your customer as an additional insured | Often no charge with blanket wording, otherwise $50 to $300 | 1 to 3 business days |
| Waiver on workers comp | About 2 to 5 percent of the premium for that job | 1 to 3 business days |
| $1,000,000 umbrella | Roughly $600 to $2,500 a year | 1 day to 2 weeks |
| $5,000,000 umbrella | Roughly $3,000 to $12,000 a year | 1 to 3 weeks |
If the contract is a bid package rather than a signed contract, see who reviews a bid's insurance requirements for free in Massachusetts. If you need a home improvement registration, see what insurance a Massachusetts contractor license needs.
What this looks like in real life
Illustrative example. It is typical of what we see and is not a promise of how any specific situation would be handled.
The setup: An electrical subcontractor in Worcester signs a $410,000 subcontract on a lab building in Framingham. Exhibit C asks for $1,000,000 general liability, a $2,000,000 umbrella, $1,000,000 auto, workers comp with a waiver, and additional insured wording that continues after the job. It also asks the sub to cover the general contractor's losses from any accident on site.
What went wrong: The sub carries $1,000,000 general liability and state-minimum auto, no umbrella, and no waiver. The contract would make him pay for accidents his crew did not cause.
What it cost: Illustrative numbers: the umbrella runs about $1,900 a year, the auto limit increase about $700, the waiver about $350, and the completed operations wording about $150. Without a review, the certificate would have been rejected the week of mobilization, at roughly $1,400 a day in idle crew cost.
The fix: A Massachusetts broker placed the coverage in nine days and flagged the indemnity clause. The general contractor's counsel narrowed it to harm caused by the sub, because Massachusetts law makes the broader wording void. Nothing needed a rush fee because the exhibit went to the broker before signing.
Frequently asked questions
Q: Who can help me meet a construction contract's insurance requirements in Massachusetts?
An independent commercial insurance broker licensed in Massachusetts. A broker reads the insurance section, matches it to your current policies, and places any missing endorsements, limits, or umbrella. Morrow does this review for free.
Q: Does the broker charge for reviewing my contract?
Usually not. Reviewing the contract is how a broker learns what coverage to place. Morrow marks up the insurance section in plain English, and there is no purchase required.
Q: Can a Massachusetts contract make me pay for the general contractor's mistakes?
Not for harm you did not cause. Massachusetts law voids any clause that makes a subcontractor cover injury or damage it did not cause. A promise to defend the other side can still survive.
Q: Do I need workers comp in Massachusetts if I only have one part-time employee?
Yes, from the first employee, with no headcount or hours threshold. General contractors check because their own insurer pays your injured worker if you have no policy.
Q: Can I start work while the broker is still adding the wording?
Not safely. Insurers rarely backdate, so wording added after an accident does not apply to that accident. Written permission from the general contractor does not create coverage for the gap either.
Q: How long does it take to fix the gaps a broker finds?
Endorsements usually take one to three business days. An umbrella takes one day to two weeks, longer for $5,000,000 or more. Send the contract the day it arrives.
How Morrow helps
Morrow is a licensed independent commercial insurance brokerage that works with contractors and trades every day. Reading a Massachusetts contract's insurance exhibit and closing every gap in it is the most common thing our contractor clients ask us to do.
- Free contract review. Send us the contract or bid documents and we mark up the insurance section in plain English, whether or not you buy anything from us.
- Free, instant certificates. Clients issue their own certificates of insurance online in about a minute, any hour, any day, at no charge.
- Markets you cannot reach online. One application, shopped across many insurance companies for general liability, workers comp, auto, umbrella, and pollution coverage.
One more thing. This article is general information and is not legal advice or a statement of coverage. Your contract and your policy wording control in every case. Requirements vary by customer, by state, and by insurance company, so have a licensed advisor review your own contract and your own policy before relying on any of it.
Last updated: Reviewed by the Morrow commercial lines team. Last updated September 2026.