Art and Design Online Blog

What a savvy contractor needs to know about carpentry contractor insurance in NJ

October 12th, 2009

There are a number of items that you will need to look for when determining what is the best carpentry contractor insurance NJ package for your business.

The first insurance policy that most carpenters get here in New Jersey is 1) Commercial General Liability Insurance.  To get your home improvement contractors license you will need to show the NJ Department of Consumer Affairs evidence of not less than $500,000 Commercial General Liability coverage.

The mistake many contractors make is to simply buy a policy based on the lowest price you can find.  Price is important, but far too many contractors simply buy a policy to obtain a Certificate of Insurance and then cancel for non payment of premium.

This is a very bad idea – the reason – it doesn’t matter so much if you were insured when you did the work but when the claim occurs.  Say for instance you build a railing on stairs for a homeowner.

No problem – you go on to other work.  Things in NJ are sometimes slow and you let your policy lapse.  If you don’t have coverage when someone is injured you don’t have any coverage – even if you had coverage the day you built the railing.

Be careful of this exposure – it can sink you – fast.

Entry Filed under: Business