An independent insurance broker licensed in New Jersey will review the insurance section of your bid package for free. That is how a broker learns what to place if you win, so there is no fee. Morrow reviews New Jersey bid packages the same way, with no purchase required. On a New Jersey public bid the review should cover the bond paperwork too, because one missing bond letter throws the bid out. Who this is for: New Jersey contractors and trades holding a public or private bid package with an insurance section or bond requirement they want checked before the bid date.
The short version
- An independent broker reviews bid insurance requirements for free. It is part of how brokers earn business.
- You do not need to buy the insurance before you bid. You need to know what it will cost so the number goes in your bid.
- New Jersey public bids over $100,000 need two things from a bond company: a deposit worth 10 percent of your bid, capped at $20,000, and a letter promising to bond you if you win. Missing either one kills the bid.
- Ask for a written cost estimate for each gap, not just a list of what is missing.
- Send the bid package the day you get it. The review takes about an hour. Placing coverage after award takes days to weeks.
Who reviews bid insurance requirements for free in New Jersey?
Several people can look at the insurance section. Here is who, what it costs, and what you get back.
| Who | Cost | What you get |
|---|---|---|
| Independent broker licensed in New Jersey | Free | A line by line match of the requirements against your policies, a price for each gap, and the lead time to fix it. Can shop many insurance companies. |
| Your current agent (one company) | Free | A match against your policies, but only that one company's options for fixing gaps. |
| Bond agent | Free | The bid bond and consent of surety. Many brokers handle bonds too, so ask. |
| Construction attorney | Hourly | Advice on the indemnity clause and other contract terms, not insurance placement. |
| Online insurer | None offered | A quote for a basic policy. Nobody reads your bid. |
The national guide to who reviews a bid's insurance requirements for free covers the general process. Below is what changes in New Jersey.
What should a New Jersey bid review tell me?
A useful review answers five questions in writing:
- Which requirements you already meet. Limits, policy types, and dates.
- Which need an endorsement. An endorsement is a change to your policy, usually one extra page. Additional insured wording (your customer can use your liability policy if they get sued because of your work) and waivers (your insurer agrees not to go after your customer to recover money it paid) are the usual ones.
- Which need a new policy or a higher limit. Usually an umbrella, a second layer of coverage above your other liability policies, or pollution coverage.
- What each fix costs. So it goes in your bid.
- New Jersey red flags. An indemnity clause that makes you pay for the owner's sole negligence, which N.J.S.A. 2A:40A-1 makes void. Trucks over 26,000 pounds garaged in New Jersey, which need $1,500,000 of liability. And any work in New York, where insurers ask harder questions and some will not quote you at all.
What is different about a New Jersey public bid?
Public bids in New Jersey add bond paperwork that is not insurance but travels with it. On a public construction contract over $100,000, miss either of the two items below and the bid is thrown out no matter how good your price was.
| Item | New Jersey rule | If it is missing |
|---|---|---|
| Bid guarantee | 10 percent of the bid, but not more than $20,000, by certified check, cashier's check, or bid bond (N.J.S.A. 40A:11-21). A letter of credit is not accepted. | Bid rejected. Cannot be fixed after opening. |
| Consent of surety | A letter from a surety saying it will write your performance bond if you win (N.J.S.A. 40A:11-22). | Bid rejected. Cannot be fixed after opening. |
| Payment and performance bonds | Required on public works under the New Jersey Public Works Bond Act after award. | No contract until they are delivered. |
| Certificate of insurance | A one page summary of your policies, usually due after award, before work starts. | Start date slips until it is accepted. |
A bid bond is a promise to the owner that you will sign the contract if you win. A surety writes it, not your liability insurer, so start that conversation early. See whether a bid needs insurance, a bid bond, or both.
Do I need to buy the insurance before I submit the bid in New Jersey?
No. What you need before the bid is the price, because the winning number has to carry it. Nearly every New Jersey bid package asks for proof of insurance after award, before you start work. After award, endorsements usually take one to three business days, an umbrella one to two weeks, and job-specific pollution coverage one to three weeks.
How much should I add to my bid for insurance?
Illustrative national ranges for a small contractor with a clean claims history, not New Jersey figures. What moves them up or down: your trade, your payroll and revenue, your claims history, and the insurance company.
| Gap | Illustrative cost |
|---|---|
| Additional insured wording, including after the job is done | Often no charge with blanket wording, otherwise $50 to $300 |
| Waiver on workers comp | About 2 to 5 percent of the premium for that job |
| $1,000,000 umbrella | Roughly $600 to $2,500 a year |
| $2,000,000 umbrella | Roughly $1,200 to $4,500 a year |
| Pollution coverage, $1,000,000 | Roughly $1,500 to $5,000 a year for most trades |
| Bid bond | Usually free with an established surety relationship |
If you win and the contract lands, the next guide is who can help you meet a contract's insurance requirements in New Jersey.
What this looks like in real life
Illustrative example. It is typical of what we see and is not a promise of how any specific situation would be handled.
The setup: A site work contractor in Toms River bids a $640,000 municipal drainage job in Brick Township. The bid package asks for a bid guarantee, a consent of surety, $1,000,000 per occurrence general liability with a $2,000,000 umbrella, $1,000,000 auto, workers comp with a waiver, and $1,000,000 of pollution coverage.
What went wrong: The owner has never bid public work. He has no surety relationship, no umbrella, and no pollution policy. The bid is due in nine days.
What it cost: Illustrative numbers from the broker's written review: umbrella about $2,600 a year, pollution about $2,900 a year, waiver about $500, and a bid bond at no charge once a surety was set up. He added about $6,000 to his bid for the first year. Without the review he would have guessed, or missed the consent of surety and lost the bid outright.
The fix: A New Jersey broker set up the surety in four days and had the bid bond and consent of surety ready two days before the deadline. The insurance was placed after award, in time for the start date.
Frequently asked questions
Q: Who can review my construction bid's insurance requirements for free in New Jersey?
An independent commercial insurance broker licensed in New Jersey. Brokers do this at no charge because it is how they learn what to place if you win. Morrow does it for New Jersey bid packages.
Q: Do I have to buy the insurance before I bid in New Jersey?
No. Bid packages almost always ask for proof of insurance after award, before you start work. Get the cost before you bid so your number is right.
Q: What is a bid guarantee on a New Jersey public bid?
Ten percent of your bid, up to $20,000, posted as a certified check, cashier's check, or bid bond. It cannot be waived and cannot be added after the opening.
Q: How long does a bid insurance review take?
Usually about an hour once the broker has the bid package and your policies. Placing the coverage after award takes longer, so send the package early.
Q: Can the broker also handle the bid bond?
Many can. Ask before you assume. If your broker does not write bonds, they can point you to a surety agent and coordinate the paperwork.
Q: What if the bid asks for more insurance than I carry?
That is normal, and not a reason to skip the bid. The review tells you what each gap costs and how long it takes to close. Most gaps are an endorsement or an umbrella, placed after award.
How Morrow helps
Morrow is a licensed independent commercial insurance brokerage that works with contractors and trades every day. Reviewing a New Jersey bid package's insurance and bond requirements before the bid date is something we do for contractors every week.
- Free contract review. Send us the contract or bid documents and we mark up the insurance section in plain English, whether or not you buy anything from us.
- Free, instant certificates. Clients issue their own certificates of insurance online in about a minute, any hour, any day, at no charge.
- Markets you cannot reach online. One application, shopped across many insurance companies for general liability, workers comp, auto, umbrella, and pollution coverage.
One more thing. This article is general information and is not legal advice or a statement of coverage. Your contract and your policy wording control in every case. Requirements vary by customer, by state, and by insurance company, so have a licensed advisor review your own contract and your own policy before relying on any of it.
Last updated: Reviewed by the Morrow commercial lines team. Last updated September 2026.