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Contractors Insurance in New Jersey

In the state of New Jersey, home builders or home repair contractors are not required to be license but they are required to be registered with the state through the New Jersey Division of Consumer Affairs. Registration is fairly simple with only a four-step process:

  1. Submit a completed application along with required supporting documents
  2. Complete the Disclosure State page of the application
  3. Submit proof of general liability insurance with a minimum limit of $500,000 per occurrence
  4. Pay a $110 registration fee

Electrical, HVAC, and Plumbing contractors are required to register with the Division AND obtain a state license from the appropriate Board before they can perform work in the state. They also need to take the trade exam to become a licensed contractor.

As for workers compensation insurance, New Jersey requires all businesses except for Sole Proprietors with no employees to have workers compensation insurance. Workers’ compensation insurance can be purchased from a commercial insurance carrier authorized to sell policies in the state. Visit the New Jersey Department of Labor and Workforce Development for more information.

Protect Your Business with Contractors Insurance from Fairbanks Insurance

Contractors, subcontractors, and specialty contractors in New Jersey are continuously exposed to risks from third-party lawsuits anytime they are at the jobsite. Employees working at the jobsite are also at risk for job-related injuries and illnesses. Vehicles and tools and equipment are also at risk at the jobsite, while in storage, or while in transit.

Here is What We Recommend:

General Liability


General Liability insurance from Fairbanks Insurance Brokers should be the bedrock of your business insurance package. Your general liability policy provides protection from everyday risks like:

  • Liability resulting from bodily injury or property damage to a third-party
  • Contractual liability that comes with contractual agreements you enter into
  • Products Completed Operations that protects your business if there are problems with products you produce or install.
  • Defense Costs – Any legal action that is filed against your business will require a response from an attorney. Your insurance company will pay to respond and defend your business.

Workers' Comp


Since the state of New Jersey requires proof of workers’ compensation coverage from every contractor, that is not a sole proprietor and has no employees, you should consider Fairbanks Insurance Brokers your number one resource to make certain your workers’ comp policy is written using the proper classes so that the premiums you pay are based on your company’s actual risk.

Commercial Auto


Any vehicle or trailer that is owned or used by your contracting business should be insured under a Commercial Auto policy. A commercial auto policy provides higher liability limits and there are typically no limits on the number of vehicles or drivers on the policy. Your commercial auto insurance provides protection for liability and damages or the replacement of your insured vehicles.

Tool Coverage


Contractors use many types of tools and special equipment that can be very expensive to replace if they are damaged or stolen at the jobsite, in transit, or in storage. When your business is covered by a contractors’ inland marine policy, these risks are transferred to an insurance company that will pay to repair or replace your tools and equipment.

Surety Bonds


Although most state licensing boards require a surety bond before they will issue your license, you will likely need additional bonds for bidding on projects or working on government projects. The professionals at Fairbanks Insurance Brokers understand bonding and will find the right bond for you at an affordable price.

Fairbanks Insurance Brokers is a leader in providing contractors insurance and is dedicated to providing Contractors and Builders the finest insurance protection at the lowest rates throughout the construction community.

With savings up to 65% on General Liability, Workers’ Compensation, Commercial Auto and Bonds, you can count on us to do the heavy lifting and provide you the most competitive quote that includes all the discounts for which you qualify.

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