New Jersey contractors insurance

What To Know About Construction Insurance

As a contractor, you will find it almost impossible to be awarded a contract without proof of insurance. Here are five types of policies you should know about when you search for New Jersey contractors insurance.

1. Commercial General Liability

This is the most common type of construction insurance coverage. CGL, as it is commonly referred to, protects against liability related to injury to a non-employee or damage to property during construction.

2. Umbrella Liability

Better suited for larger contractors working larger construction sites, umbrella liability coverage serves as a supplement to the CGL coverage. When the CGL maximum limits are exhausted, it takes over any remaining liability payments.

3. Builder’s Risk

Builder’s risk insurance provides protection for the builder (and subcontractors) in case of any disasters while the building is being constructed. Covered events usually include, fire, wind, hail, lightning, vandalism, and theft.

4. Professional Liability

For projects where you serve as the designer and builder, professional liability insurance is needed to cover your design. This is not typically covered under CGL, so many contractors also choose to carry professional liability.

5. Contractor’s Pollution

Contractor’s pollution insurance covers against bodily injury and property damage resulting from work site pollution. It can also be used towards the cost associated with limiting the amount of pollution.

Having the right New Jersey contractors insurance is key to protecting against the inherent risk in the construction industry. Use this guide to help you in your search.