Builders Risk in Massachusetts

DCAMM's general conditions for public building construction require the contractor to buy builders risk or an installation floater, on an all-risk basis, for the contract price, and to keep it until final acceptance and final payment. Flood is in that list only if the project is not in an A or V flood zone, and the earthquake and flood limits are the lesser of the contract price or $10 million unless the contract sets a higher amount. A subcontract clause that makes a subcontractor indemnify another party for injury the subcontractor did not cause is void.

What Is Builders Risk Insurance?

Builders risk protects the project you are building, including materials meant for it, against physical loss until construction ends. The gaps that cost owners money are materials in storage or transit, the existing building in a renovation, and coverage ending when you occupy early. Read the national Builders risk guide.

Massachusetts Builders Risk Insurance Requirements

Requirement	Details
DCAMM builders risk amount	Contract price, all-risk or equivalent, kept until final acceptance and final payment. ¹
Earthquake and flood sublimit	The lesser of the contract price or $10,000,000, unless the contract specifies otherwise. Flood is listed only if the site is not in an A or V zone. ¹

What to Watch for With Builders Risk in Massachusetts

Flood Drops Out in an A or V Zone
The DCAMM builders risk clause lists flood only if the project is not in an A or V flood zone. Earthquake and flood limits, when those perils are in the form, are the lesser of the contract price or $10,000,000 unless Exhibit A or the contract says otherwise. If the parcel is in an A or V zone, ask for a separate flood placement. The standard sentence does not provide it. ¹
Work on an Existing Building Uses an Installation Floater
When work will be done on existing buildings the owner already owns, the contractor provides an installation floater for the full contract price, again on an all-risk basis, with the same earthquake and flood limit structure. New construction uses builders risk for all work in the contract. Tell the broker which one the project is. Off-site stored materials must be insured, and the contractor replaces any loss to those materials at no expense to the awarding authority. ¹
Name Every Tier, and Keep the Policy Through Final Payment
The policy must list the awarding authority, the owner, the contractor, and subcontractors of any tier as named insureds, and it must be payable to those interests as they appear. Coverage runs until final acceptance and final payment, not merely until the building is enclosed. The contractor adjusts a property loss as fiduciary and pays subcontractors their shares. Certificates are due when the contract is signed, must show builders risk as all-risk including earthquake and flood with the awarding authority as named insured or loss payee, and cancellation needs 30 days' written notice. The contractor pays the deductibles. ¹
The Second Requisition Waits on Proof the Premium Was Paid
DCAMM's billing instructions say the general contractor must submit proof that the bond and insurance have been paid before the second requisition on a state project can be processed. A binder that has not been paid can stall that invoice. Ask for the insurer's letter or the cancelled check the instructions accept. ³
A Subcontract Cannot Shift Someone Else’s Negligence
Massachusetts General Laws chapter 149, section 29C voids a provision in a construction contract that requires a subcontractor to indemnify any party for injury to persons or damage to property not caused by the subcontractor or its employees, agents, or subcontractors. That limit is about the subcontract, not about whether builders risk covers the loss. Read the indemnity next to the waiver of subrogation the DCAMM property form requires in favor of the awarding authority and owner. ^2,¹
Permits After June 30, 2025 Use Only the 10th Edition
The 10th edition of the state building code, 780 CMR, took effect October 11, 2024. The 9th edition could be used concurrently only through June 30, 2025. Applications received on or after July 1, 2025 that rely on the 9th edition are not accepted. Match the builders risk values to the plans filed under the edition the permit actually uses. ⁴

Which Builders Risk Providers Have Massachusetts License Records?

No provider in our research has both a state license record and a listing for this coverage line. This does not establish that providers are unlicensed. Check the regulator’s license lookup and confirm availability with a provider when requesting a quote.

Who Regulates Insurance in Massachusetts?

Massachusetts Division of Insurance

The Massachusetts Division of Insurance licenses insurers and producers, reviews rates and forms, and handles insurance complaints. Use the State Based Systems lookup for producers, agencies, and surplus-lines brokers. For insurer status, use the DOI’s separate licensed or approved company lists, including the eligible surplus-lines company list. Before filing a complaint, contact the insurer or producer; if the response is unsatisfactory, submit the online form with supporting papers. The DOI says not to use the form for ongoing litigation. ^5,^6,^7,⁸

Website: Regulator website
License lookup: Search licensed producers
Complaints: File a complaint
Phone: 617-521-7794

Surplus-Lines Tax and Stamping Office in Massachusetts

Reported tax rate. 4% of gross premiums less gross return premiums on risks or exposures in Massachusetts or another state when Massachusetts is the insured’s home state. ^9,^10,^11,¹²

A diligent effort to place coverage with admitted insurers is generally required before surplus-lines placement through a specially licensed Massachusetts broker. The narrow §224 large-commercial exception is described in the note below.

Multi-state surplus-lines tax dates and exceptions: For this rule, home state means the state of the insured’s principal place of business or, for an individual, principal residence; if 100% of the risk is outside that state, home state is where the greatest percentage of taxable premium for that insurance contract is allocated. For multi-state policies effective on or after August 10, 2018, the Division of Insurance says the 4% tax applies to gross premium regardless of whether risks are inside or outside Massachusetts when Massachusetts is the insured’s home state. For earlier effective dates, Massachusetts risk portions are taxed at 4%, while out-of-state portions are taxed at the rates for their allocated premium. The Division lists exceptions for policies issued to the Massachusetts Bay Transportation Authority, federal credit unions when they are the purchaser, and tribal lands on reservations. Brokers still make required filings for exempt policies. Tax-exempt status alone is not specifically excluded. ^9,¹⁰
Narrow large-commercial placement exception: Section 168(b)(iv) exempts the diligent-effort affidavit and excess-placement condition in §168(b)(iii) only for a §224 qualifying commercial risk or policyholder. The policyholder must acknowledge in writing that the insurer is not admitted and that the Massachusetts Insurers Insolvency Fund will not pay an insolvency loss. Section 224 eligibility is limited to a corporation, partnership, trust, sole proprietorship, or other business or public entity with at least $30,000 in aggregate property-and-casualty premiums, excluding workers’ compensation. The holder must certify its election and understanding of limited regulatory oversight and certify at least two criteria: net worth of $10 million; net revenue or sales of $5 million; more than 25 employees per individual company OR more than 50 employees per holding company aggregate; a nonprofit or public entity with annual budget or assets of $25 million or more; a municipality with population of 20,000 or more; or retention of a risk manager who is either a full-time employee or retained by the policyholder; that person must be licensed and hold one of these qualifications: certified insurance counselor, chartered property and casualty underwriter, associate in risk management, certified risk manager, or licensed insurance advisor in property and casualty. ^11,¹²

Questions to Ask Before You Buy Builders Risk in Massachusetts

Is the parcel in an A or V flood zone, and if so where is flood covered?
Is this new work at the contract price, or an installation floater on an existing building?
Are the awarding authority, owner, contractor, and subcontractors of every tier named insureds through final payment?
What proof of paid premium will DCAMM accept before the second requisition?
Does any subcontract indemnity conflict with chapter 149, section 29C?

Builders Risk Insurance in Massachusetts: Frequently Asked Questions

Does the DCAMM builders risk clause include flood in an A or V zone?

No. The general conditions list flood only if the project is not in an A or V flood zone. Earthquake and flood limits otherwise are the lesser of the contract price or $10,000,000 unless the contract sets a different amount. ¹

When does DCAMM builders risk end?

When the awarding authority and owner have finally accepted the contract and final payment has been made. Enclosure or substantial completion is not the endpoint in that clause. ¹

Can a Massachusetts subcontract require a subcontractor to indemnify for an injury it did not cause?

No. Chapter 149, section 29C makes that provision void. ²

Sources for Builders Risk Insurance in Massachusetts

1
DCAMM General Conditions of the Contract, c. 149, revised October 2017. Massachusetts Division of Capital Asset Management and Maintenance; Article XIV, section 6, Builder's Risk / Installation Floater / Stored Materials, and certificate conditions in section 1. Accessed 2026-09-29.
2
M.G.L. c. 149, § 29C. Massachusetts General Court; Subcontractor indemnification for injury not caused by the subcontractor is void. Accessed 2026-09-29.
3
DCAMM General Contractor's Billing Instructions. Massachusetts Division of Capital Asset Management and Maintenance; Proof of paid bond and insurance before the second requisition. Accessed 2026-09-29.
4
10th Edition of the State Building Code. Massachusetts Board of Building Regulations and Standards; Effective October 11, 2024; 9th edition concurrency ends June 30, 2025. Accessed 2026-09-29.
5
Division of Insurance. Massachusetts Division of Insurance; Official DOI overview: insurer/producer licensing, rates/forms review, complaints and solvency oversight; Contact Us / phone. Page text retrieved in search rendering; direct fetch returned 403. Accessed 2026-09-29.
6
Find Insurance Agents, Agencies and Other Licensees. Massachusetts Division of Insurance; SBS online-verification description and enumerated classes: producers, agencies, public adjusters, appraisers, advisers, reinsurance intermediaries, surplus-lines brokers, life-settlement brokers; insurers are not listed. Page text retrieved in search rendering; direct fetch returned 403. Accessed 2026-09-29.
7
Massachusetts Licensed Insurance Companies. Massachusetts Division of Insurance; Directory headings distinguish Massachusetts Licensed or Approved Companies and Massachusetts Eligible Surplus Lines Companies. Page text retrieved in search rendering; direct fetch returned 403; no company row checked. Accessed 2026-09-29.
8
DOI Online Insurance Complaint Form. Massachusetts Division of Insurance; Introductory instructions: contact insurer/producer first; if unsatisfied complete form and attach papers; not for ongoing litigation. Page text retrieved in search rendering; direct fetch returned 403; interactive form not opened/submitted. Accessed 2026-09-29.
9
M.G.L. c.175, §168. Massachusetts General Court; Current statute directly opened: §168(a) home-state definition and greatest-taxable-premium fallback if 100% risk outside principal-business state; §168(d)(2) 4% on gross premiums less gross returns for risks/exposures in MA or elsewhere if MA is home state. Accessed 2026-09-29.
10
Surplus Lines Insurance. Massachusetts Division of Insurance; Official FAQ: “What is the premium tax rate on surplus lines insurance written in Massachusetts?” (complete answer: post-Aug. 10, 2018 flat 4% gross-premium rule and pre-date state allocation); “Are any surplus lines premiums exempt from the 4% surplus lines tax?” (complete answer: MBTA, federal credit unions when purchaser, tribal lands on reservations); “If an insured is granted tax-exempt status…” (complete answer: §168 does not specifically exclude tax-exempt organizations). Complete relevant FAQ answers appeared in official page body returned by search rendering; direct URL open returned 403. Accessed 2026-09-29.
11
M.G.L. c.175, §168. Massachusetts General Court; Official statute directly opened: §168(b)(iii)–(iv), lines 62–66. Complete scope: affidavit of diligent admitted-market effort and placement only of the amount unavailable from admitted companies; clause (iii) does not apply to a §224 qualifying commercial risk/policyholder with written understanding of nonadmitted status and no Massachusetts Insurers Insolvency Fund payment for insolvency. Accessed 2026-09-29.
12
M.G.L. c.175, §224. Massachusetts General Court; Official statute directly opened: §224(a), lines 49–62. Complete large-commercial definition and all six criteria reviewed, including criterion (3): more than 25 employees per individual company OR more than 50 employees per holding company aggregate. Accessed 2026-09-29.
13
Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
14
Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
15
Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
16
About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
17
Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
18
About Risklytics. Risklytics; What we do; Who we insure; Licensing; Agency licenses table dated 2026-09-10. Accessed 2026-09-16.
19
Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
20
Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Builders Risk in Massachusetts

What Is Builders Risk Insurance?

Massachusetts Builders Risk Insurance Requirements

What to Watch for With Builders Risk in Massachusetts

Flood Drops Out in an A or V Zone

Work on an Existing Building Uses an Installation Floater

Name Every Tier, and Keep the Policy Through Final Payment

The Second Requisition Waits on Proof the Premium Was Paid

A Subcontract Cannot Shift Someone Else’s Negligence

Permits After June 30, 2025 Use Only the 10th Edition