Question 1

What environmental insurance do I need for demolition of older buildings?

Accepted Answer

For any building constructed before 1978, assume asbestos and lead paint are present until a pre-demolition environmental survey proves otherwise. Require the demolition contractor to carry at least $1M in pollution/environmental liability covering asbestos, lead, and other hazardous material exposure. The survey should be performed by an independent environmental consultant, not the demolition contractor.

Question 2

How do I protect against damage to adjacent properties during demolition?

Accepted Answer

Require the demolition contractor's GL policy to specifically cover damage to adjacent structures from vibration, debris, and equipment operations. Consider requiring a pre-demolition condition survey of adjacent properties to establish a baseline. Notify adjacent property owners in writing before demolition begins and require the contractor to maintain dust and debris containment measures throughout the project.

Question 3

What should I look for in a demolition contractor's safety program?

Accepted Answer

Request a site-specific safety plan that addresses structural assessment, hazardous material handling, equipment operation, public protection, and emergency response. Verify the contractor's EMR is at or below 1.0, indicating an average or better safety record. Check their OSHA citation history and request their most recent three years of loss runs from their insurance carrier.

Question 4

Is interior demolition less risky than structural demolition?

Accepted Answer

Interior demolition carries lower risk of structural collapse but still presents significant hazards including asbestos and lead exposure, electrical and plumbing hazards from live utilities, and dust and noise in occupied buildings. The GL requirements may be somewhat lower ($1M/$2M for minor interior demo) but workers' compensation and pollution liability requirements remain the same. Always require a hazardous materials survey before any interior demolition.

Question 5

Do demolition contractors in Massachusetts need a license?

Accepted Answer

Licensing requirements for demolition contractors vary by municipality in Massachusetts. Check with your local licensing board and always request proof of current licensure on the COI.

Question 6

What happens if my demolition contractors's insurance expires in Massachusetts?

Accepted Answer

In Massachusetts, you as the property manager could be held liable for injuries or damages caused by an uninsured demolition contractors on your property. Massachusetts courts have consistently ruled that property owners have a duty to verify contractor insurance before allowing work to begin.

Coverage Type	Recommended Minimum	Notes
General Liability	$2,000,000 / $4,000,000	Higher limits are essential due to the destructive nature of demolition and the potential for structural collapse, third-party injuries, and adjacent property damage. Verify no collapse exclusion.
Workers Compensation	Required (1+ employees)	M.G.L. Chapter 152 requires WC for all employers with 1+ employees. Sole proprietors in construction must often provide WC coverage under commercial contract requirements even without employees.
Commercial General Liability	$2,000,000 / $4,000,000	Must cover structural collapse and property damage from demolition operations. Verify no collapse exclusion or sublimit. Completed operations coverage for latent structural issues.
Workers' Compensation	Statutory limits	Critical given the extreme injury risk. Verify the contractor's EMR is at or below 1.0. Employers' liability of $1M/$1M/$1M minimum.
Pollution / Environmental Liability	$1,000,000	Required for any demolition of pre-1978 buildings or structures with suspected hazardous materials. Covers asbestos, lead, and other contamination claims.
Umbrella / Excess Liability	$2,000,000	Essential for demolition contractors. Structural collapse or adjacent property damage claims can easily exceed primary GL limits. Larger projects may require $5M+.
Inland Marine / Equipment	$250,000	Covers heavy machinery (excavators, loaders) used in demolition. Equipment failures or damage on your property should be the contractor's responsibility.

Demolition Contractors Insurance Requirements in Massachusetts

Demolition Contractors Insurance Requirements in Massachusetts

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