Mistakes people make when buying Contractor Insurance in New Jersey
There are almost 800,000 small businesses in New Jersey. And an estimated 70,000 firms are in the construction industry. In fact, the real gross value of the New Jersey product grew by 1.1%. It’s already half of the growth of domestic growth products in the United States in 2013. However, the employment rate has created maximum strides. From 7.7% in 2013, it reduced to 6.6% in 2014. Sounds like legit big news to New Jersey residents and businesses.
But if you’re still looking for more promising news, read more about the contractor insurance NJ and how this liability coverage can help your business.
Why your contractor needs to have insurance
Life is all about taking chances and risks. But, like what they always say, if you can’t afford to lose something, you should never risk it. It can be applied to many phases in life, especially those involving substantial risk regarding your business. Hiring contractors and acquiring liability insurance are included in this risk option.
It’s less expensive to hire uninsured contractors, but it’s not going to be a great idea for general liability. If you take a contractor for home construction and remodeling projects, he must assume his responsibility. And with massive responsibility comes the same vast and general liability.
Insurance New Jersey Contractors Need
Coverage for Third-Party (GL):
If someone visits the construction site, they don’t have to worry because they are also protected with the general liability of the New Jersey contractors policy insurance. It is essential because whenever they get hurt caused by falling debris or lumber, the medical fees will be paid by insurance. On the other hand, if the personal belongings of the owner like their car are being damaged at the site, the repairs for the property damage will be paid by the general liability insurance.
Tools & Equipment Coverage (BOP):
If you are bothered about losing access to your valuable equipment or tools, you can assure that the New Jersey contractors liability insurance is a big help. This coverage meant to pay or replace any piece of equipment being used in the construction business. When buying a new wrench after being stolen or lost, it might be feasible, but getting a new excavator is not. That said, this insurance coverage can help.
Employee Coverage (WC):
Workers compensation is needed if you want to consider New Jersey contractor insurance, regardless of your company, limits to 500 employees, or employ a few more. Workers compensation coverage is available to pay for the treatment of an employee who gets injured in any way possible while performing their work. Also, the workers compensation insurance might be of big help whenever an injured employee plans a lawsuit against one’s business. The coverage can also be connected to bodily injury, which ensures the employee’s safety and security. Bodily injury coverage will pay for any damage done to workers while doing their job.
Business Vehicle Insurance:
If you plan to operate or use your company ‘s car, a commercial auto, or even your own car for work reasons, you must consider vehicle or commercial auto insurance coverage from the NJ contractors insurance. So, whenever you cause an accident to someone while driving the car for business purposes, the damages you caused will be paid for by the auto insurance.
Considering a sure bond to your NJ contractors insurance ensures a guaranteed construction field services. The insurance policy will cover any fees you get if a breach of contract is present.
How much does insurance for contractors costs?
Contractor insurances reimburse an average premium amounting to $90 every month. It’s massively equal to $1,090 every year for most general liability coverage and professional liability insurance policy. These insurances for contractors give them protection from third-party property damage, advertising injuries, and third-party injuries.
It’s important to get contractors that are insured and licensed. You might get a tempting offer of insurance for contractor offers from others, but you must never risk hiring an uninsured crew. With trusted and reliable contractors getting your job done, you’ll feel secure and sleep better.
Ready to Start?
Our New Jersey Contractor Insurance agents are ready to for your guidance.