New Jersey’s construction industry is booming. According to an Associated Construction Contractors of New Jersey report, total spending reached $14 billion in 2024 and continues to rise. While construction starts dropped 19% nationwide, New Jersey saw a 33% increase, driven by large-scale projects in Salem and Middlesex Counties. With more work comes more risk; however, making construction general liability insurance essential.
This coverage protects contractors from common risks like third-party injuries, property damage, and lawsuits. It’s the foundation of a solid risk-management plan, no matter the size or type of project.
Why Construction General Liability Insurance Is Essential for NJ Contractors
Construction sites carry a high level of liability exposure. A single incident — like a passerby injury or damage to a nearby property — can result in expensive legal claims. Construction general liability insurance may help cover medical costs, property repairs, and legal defense fees related to these types of claims.
Many contractors also face complex situations involving multiple parties. When something goes wrong, responsibility isn’t always clear. As outlined in this article on construction claims, disputes can involve multiple contractors and layers of coverage. Having the right general liability policy helps contractors protect themselves in cases of disputed or shared liability.
What’s the Best Insurance for Contractors?
The best insurance depends on your business. A small residential contractor may need different coverage than a firm managing large commercial or industrial builds. In general, one of the most important coverages for any contractor is a reliable general liability policy — but that’s just the beginning.
Some businesses may benefit from bundled policies that include commercial auto and workers’ compensation. Others may require more extensive packages, including umbrella insurance or builders risk coverage.
When choosing insurance, it’s important to consider:
- Your project types and jobsite risks
- Contract requirements for specific coverage
- Whether subcontractors are covered under your policy
- Future growth plans that could change your exposure
How To Choose the Right Construction Insurance in New Jersey
Choosing the right policy starts with understanding your risk. Here are some tips to help you make the right decision.
- Know your exposure: Consider the size of your projects, the number of workers on site, and whether you work in residential, commercial, or industrial construction.
- Read the fine print: Compare coverage limits, exclusions, and deductible amounts. A cheaper policy may offer less protection when you need it most.
- Make sure subcontractors are covered: If you work with subcontractors, ensure your policy either covers their actions or that they carry their own insurance.
- Understand your legal obligations: Many New Jersey clients and municipalities have strict insurance requirements. Make sure your policy meets those terms.
- Work with an expert: Partner with an insurance provider who understands construction insurance in New Jersey. This step helps you comply with state regulations and reduces coverage gaps.
For more information on what’s required and recommended, see our guide to construction liability insurance essentials in New Jersey.
Protect Your Business With the Right Coverage
Whether you’re taking on new commercial projects or managing long-term maintenance contracts, construction general liability insurance helps protect your business from lawsuits and financial setbacks. The right coverage gives you peace of mind and positions your company for continued success in New Jersey’s growing construction market.
Call today to speak with a specialist at Provident Protection Plus about contractor insurance solutions built for your business.
About Provident Protection Plus
For more than 65 years, Provident Protection Plus has served businesses and residents across several states nationwide. Today, we are a wholly owned subsidiary of Provident Bank, the region’s premier banking institution. To learn more about our coverage options, contact our specialists today at (888) 990-0526.