What to Know About NJ Contractors Insurance in 2024

As a contractor, you know every job comes with risks. The good news is that New Jersey contractors insurance can help you mitigate them. In fact, the state requires contractors to maintain a certain level of insurance. Of course, meeting the legal requirement is only the baseline — you need policies addressing your industry’s specific risks. Fortunately, you can find suitable coverage with a little research.

Understanding New Jersey Contractors Insurance

New Jersey requires general contractors to have general liability insurance to obtain their licenses. They must maintain at least $500,000 per occurrence and present proof of insurance to the New Jersey Division of Consumer Affairs.

Additionally, you must have auto insurance coverage if your business owns a vehicle. Personal auto insurance doesn’t cover company-owned vehicles, so you’ll need a commercial policy.

Finally, the state requires general contractors to buy workers’ compensation insurance if they have employees. Without this essential coverage, business owners may be liable for workplace injuries, which can lead to expensive court battles. Additionally, the state can issue thousands of dollars in fines, and the company’s public reputation may suffer. Lack of general liability and auto insurance can also leave companies vulnerable to civil and legal action. 

Also, contractors must renew their licenses each year. Without proof of proper New Jersey contractors insurance, contractors can’t renew, leaving them unable to offer home improvement services legally.

Reviewing Types of Insurance for Contractors

General liability protects businesses from customers suing for damage to their properties. For instance, if a construction team accidentally breaks a porch step while carrying equipment inside, the insurer may pay for repairs. Insurance policies also cover personal injury due to the business’s actions, as well as defense costs should customers take matters to court.

However, general liability doesn’t cover damage from professional mistakes, including breach of contract, undelivered services, and negligence. To safeguard your company from litigation concerning these issues, you’ll need errors and omissions insurance.

While general liability offers financial protection in the event of property damage or customer injuries, contractors should still take steps to mitigate risk. Maintaining high safety standards can make a huge difference:

  • Inspecting and maintaining equipment
  • Training employees on safety protocol
  • Providing proper personal protective equipment
  • Following OSHA’s scaffolding best practices

Choosing the Right Contractors Insurance

New Jersey contractors insurance works best when customized. That way, you can find policies that meet your business’s unique needs while staying within your budget.

The best providers help you find this balance. As you consider options, make sure the coverage meets New Jersey regulations. This step is critical if the provider isn’t based in the Garden State. It’s also essential to check the insurer’s financial stability to ensure the company can pay claims.

Purchasing New Jersey Contractors Insurance

Prioritizing insurance pays off in the long run. When you have adequate coverage, you don’t have to worry about the financial strain of a civil suit. Tackling this task early also means you don’t have to scramble at the last minute to meet state regulations, allowing you to find policies that match your needs. To learn more about New Jersey contractors insurance, call today!

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.