There are 3,787,470 construction firms in the US. This business offers promising returns, with profits averaging $100,000 to $ 1 million annually.
If you are considering venturing into this money-making business It would be best to acknowledge that risks might be inevitable whether you are a startup or an experienced contractor.
This article discusses the New Jersey contractor insurance fundamental policies you should prioritize, their coverage limits, and the top insurance companies and brokers you can buy from.
New Jersey Contractor Insurance Requirements
Here are some of the fundamental NJ contractor insurance requirements:
- General liability insurance–You require general liability insurance with limits of $500,000 -$1,000,000 per occurrence and aggregate limit
- Workers’ compensation insurance–If you have employees in New Jersey, you must hold workers’ compensation insurance. The number of employees and type of work determine the limit
- Commercial auto insurance–Coverage limitations depend on the contractor’s vehicle size, type of work, and other considerations. The coverage limit ranges from $500,000 to $1 million per accident
General Liability Insurance for New Jersey Contractors
Contractor general liability insurance in New Jersey cushions your firm from claims that may occur during a renovation or building operation. Ensure you purchase this nj general contractor insurance for adequate protection from advertising injuries, bodily injuries, and medical payments.
- If a competitor firm accuses you of using their images or logo without permission
- A client is injured while visiting the construction site
- You damage a customer’s car while constructing a building
The limit can be $1 million to $2 million for each occurrence, while you get an aggregate limit of up to $5 million or more.
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $2,000,000 | $1,000,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $2,000,000 | $1,000,000/$2,000,000 |
| Waiver of subrogation included? | Yes | No | Included | Can be included | No |
| Can you get a certificate of insurance online? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Deductible | $0 | $0 | $0 | $0 | $0 |
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Professional Indemnity Insurance for New Jersey Contractors
When a client sues you over a mistake you made, this policy will cover legal defense and settlement costs.
Incidents covered are;
- You make a slight mistake when designing or renovating a building, leading to your client incurring expensive repairing or rebuilding costs
- Your construction promises a specific service, but you fail to deliver. A client might believe your actions impacted their business
The estimated coverage limit after being accused of professional errors or negligence is $1 million to $5 million for a single claim. But you can get higher limits if you are involved in complex projects.
| CoverWallet | NEXT | Thimble (Best) | Hiscox | The Hartford | |
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $1,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $2,000,000 |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Sexual misconduct coverage included? | No | No | No | No | Can be included |
| License defense coverage included? | No | No | No | No | Can be included |
| Deductible | $500 | $500 | $500 | $50/$10,000 | $500 |
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Commercial Property Insurance for New Jersey Contractors
Commercial property insurance will cover your business premises’ rebuilding or repair costs. It can also pay for the costs of replacing your equipment or stock. This policy includes content and buildings insurance.
 Building insurance will cover your physical structures, such as ceilings, walls, and floors. On the other hand, contents insurance will cover your stock or equipment. Some of the covered perils include:
- Burst pipes
- Storms
- Riots
- Theft
- Flooding
- Falling trees
Storms or floods can destroy your buildings; your insurance company will pay $500,000 to $5 million to cover rebuilding and repair costs. But if you have valuable facilities, you will require better coverage.
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
| Building coverage limit (minimum) | $50,000 | $260,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Contents coverage limit (minimum) | $50,000 | $22,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Outdoor signs | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Business interruption floater | Excluded | Included | Included | Included | Excluded |
| Equipment breakdown floater | Excluded | Included | Excluded | Excluded | Excluded |
| Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 | Included | Excluded |
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Tools and Equipment Insurance for New Jersey Contractors
Tools and equipment insurance offers coverage for your small hand tools and equipment. This coverage may also extend to your rental equipment. Your insurance can provide replacement cost coverage or actual cash value coverage. The insured is compensated when;
- Your tools and equipment are damaged by fire
- Your items are stolen
- Your employees accidentally damage your tools and equipment
| NEXTÂ | Thimble | Hiscox | The Hartford | |
| Aggregate limit | $3,000/$10,000 | $2,500/$5,000 | $15,000/$25,000 | $5,000-$10,000 |
| Covers hired and borrowed equipment? | $3,000/$10,000 | $2,500/$5,000 | No | Yes |
| Miscellaneous equipment also covered? | $5,000/$10,000 | No | Yes | Yes |
| Offered as an endorsement to general liability insurance? | Yes | Yes | Yes | Yes |
| Deductible | $500 | $500 | $0 | $0 |
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Commercial Auto Insurance for New Jersey Contractors
You require commercial auto insurance if your construction business owns or leases vehicles. This help compensates for the legal fees, repairs, or medical costs in case an accident that involves your automobile occurs. The policy covers a variety of vehicles, such as vans, tracks, or cars, for your contracting business.
 Components of this insurance are;
- Liability coverage–Pays for property damage and bodily injury liabilities after an accident
- Medical payment coverage–Pays for the needed medical costs for all the covered personnel
- Collision coverage–Will pay for the repair costs if your vehicle is damaged after a collision with an object or car
- Comprehensive coverage–Will pay for the damage to your insured vehicle; damage can be due to vandalism or theft
- Depending on the extent of the accident, you can get coverage of $50,000 to $500,000.
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Workers Compensation Insurance for New Jersey Contractors
The construction business poses so many hazards to the workers. An employee may fall from a height and sustain severe injuries.
 In other instances, the materials you use for construction can lead to infections. Having this home improvement nj contractor insurance is intrinsic to the safety of your employees.
- An employee falls ill due to exposure to harmful substances at work
- An employee suffers from chronic pain due to lifting heavy materials
- An employee falls from a height and sustains a hip injury
Help others make better decisions
New Jersey Contractors Insurance Cost
The average NJ contractor insurance cost is $32 per month or $384 per year for a $1 million general liability policy. Factors that affect premiums are claims history, business history, policy limits, deductibles, and number of employees.
| Cost per Month | Cost per Year | Deductible | |
| General liability insurance | $32 | $384 | $0-$500 |
| Professional liability insurance | $46 | $552 | $1,000-$2,000 |
| Commercial property insurance | $55 | $660 | $1,000-$2,000 |
| Tools and equipment insurance | $38 | $456 | $500-$1,000 |
| Commercial auto insurance | $57 | $684 | $500-$1,000 |
| Workers compensation insurance | $65 | $780 | $2,500-$5,000 |
| Excess liability insurance | $34 | $408 | $500-$1,000 |
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NEXT
NEXT is one of the best choices for contractors seeking comprehensive coverage in New Jersey. They allow you to acquire insurance coverage online, access your insurance license, and manage your policies easily. You can get assistance from their agents when making claims.
Average cost: $15 per month
Our rating: 10/10
Pros
- Excellent rates suitable even for startup contractors
- Offers online proof of insurance within minutes
- For bundled-up policies, you get a 10% discount
- Fastest general liability insurance
- Best overall
Cons
- Couldn’t find any
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CoverWallet
CoverWallet offers adjusted insurance solutions to contractors despite the size of your business. They have also invested in an online comparison tool that allows you to view the prices of different providers.
Average cost: $17 per month
Our rating: 10/10
Pros
- They offer an online platform where you have access to multiple insurance providers
- You can find out which insurer offers competitive rates through their comparison tool
- You can discuss the needs and operations of your business with them, and they will direct you to a provider who best meets your needs
Cons
- An insurance broker who does not underwrite their policies
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The Hartford
The Hartford has offered a safety net for small businesses for over a century. It is known for having the best workers’ compensation policies and benefits. They also provide businesses tips to mitigate occupation-related accidents.Â
Average cost: $20 per month
Our rating: 10/10
Pros
- They have a good reputation for handling claims faster
- You can purchase comprehensive insurance policies
- Offers excellent benefits on their worker’s compensation insurance
- You can easily acquire contractors insurance online
Cons
- Primarily targets AARP members and may not adequately address the needs of non-members.
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Tivly
Tivly has collaborated with top-rated providers to ensure your business has limitless coverage options. You can purchase multiple policies from this insurance marketplace, such as BOP, workers’ compensation insurance, excess liability, general liability, property insurance, and more.
Average cost: $22 per month
Our rating: 9/10
Pros
- Has partnered with many insurance companies (more than 200)
- You can quickly obtain insurance quotes on your phone
- Does not consider the risk to your business when issuing coverage
- They are cheaper than other providers
Cons
- You cannot get an insurance quote online
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Thimble
Thimble offers on-demand coverage for your construction business. In addition to their short-term policies, you can also get long-term coverage. This company ensures you have versatility and the freedom to customize your limits.Â
Average cost: $26 per month
Our rating: 9/10
Pros
- Allows contractors to buy insurance policies when needed
- You can include multiple add-ons on the general liability insurance
- Their insurance premiums are cost-effective
Cons
- Their customer service is not available on the phone
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HiscoxÂ
Hiscox is a company known for offering global coverage for companies. You can get a 14-day refund of all your policies. As your construction business expands, you can adjust your limitsÂ
Average cost: $28 per month
Our rating: 9/10Â
Pros
- You can purchase a wide array of policies
- They offer coverage in many countries through their worldwide coverage
- They are an experienced company that ensures businesses get the appropriate coverage
Cons
- The process of making claims can be slow
