An independent commercial insurance broker licensed in New Jersey is the person to call. A broker reads the insurance section of your contract, compares it to the policies you already carry, and places the endorsements, limits, or extra policies you are missing, and Morrow does that review for free. Who this is for: New Jersey contractors and trades holding a subcontract or owner contract with an insurance exhibit they do not fully understand.
The short version
- A licensed independent broker is the one person who can both read the contract and fix the gaps.
- Most New Jersey contracts ask for general liability, workers comp, commercial auto, and an umbrella, plus extra wording on each.
- New Jersey law will not let a contract make you pay for an accident that was entirely the other side's fault.
- Workers comp is required from your first employee in New Jersey, and the general contractor pays your injured worker's benefits if you have none.
- Send the contract before you sign. Fixes take one day to two weeks and cost far less than a delayed start.
Who can actually help me with the insurance section?
Several people will offer. Only one of them can read the contract and also place the coverage.
| Who | What they can do | What they cannot do |
|---|---|---|
| Independent broker licensed in New Jersey | Read the exhibit, compare it to your policies, add endorsements (changes to your policy, usually one extra page), place an umbrella, and talk to the general contractor's reviewer for you. | Give legal advice on the contract terms. |
| Your current agent (one insurance company) | Add endorsements and raise limits with that one company. | Shop other companies if yours says no. |
| Online insurer | Sell a basic policy fast. | Read your contract or place a $5,000,000 umbrella. |
| Construction attorney | Advise on the promises in the contract. | Sell insurance or issue a certificate. |
| The general contractor's office | Tell you what they will accept, and sometimes adjust a requirement. | Fix your policy for you. |
For most New Jersey contractors the broker does nearly all of the work.
What do New Jersey contracts usually ask for?
The list is close to the national one: general liability (pays if your work hurts someone or damages property that is not yours), workers comp, commercial auto, and an umbrella (a second layer of coverage above your other liability policies). The extra wording is where certificates fail. Start with what insurance a construction contract needs, then check these New Jersey details.
| Item | What New Jersey law says | What contracts usually ask for |
|---|---|---|
| Workers comp | Required from the first employee, with no headcount threshold (R.S. 34:15-71). A corporate officer who works in the business is always a covered employee. | A policy plus a waiver, which means your insurer agrees not to go after your customer to recover money it paid. |
| Commercial auto | Since January 1, 2026, at least $35,000 per person and $70,000 per accident for injuries, plus $25,000 property damage. Separately, since July 1, 2024, commercial trucks garaged in New Jersey rated 10,001 to 26,000 pounds need a $300,000 combined single limit and trucks over 26,000 pounds need $1,500,000 combined single limit, which is one number covering both injuries and property damage. | $1,000,000 combined single limit. |
| General liability | Not required by state law for most trades. Home improvement contractor registration requires at least $500,000 per occurrence. | $1,000,000 per occurrence, $2,000,000 for the year, with your customer added as an additional insured (they can use your policy if they get sued because of your work). |
| Umbrella | No state rule for most contractors. The $1,500,000 truck limit may be met with auto and umbrella policies combined. | $1,000,000 to $5,000,000 depending on the project. |
Is there anything a New Jersey contract cannot make me promise?
Yes. Most construction contracts include indemnification, which is a promise to cover someone else's losses. Under N.J.S.A. 2A:40A-1, a New Jersey construction contract cannot make you indemnify another party for that party's sole negligence. You can be made to pay for accidents your crew caused, and for shared fault, but never for an accident that was 100 percent the other side's fault.
One caution. A New Jersey court will only make you pay for shared fault if the contract says so in plain, specific words. Vague wording tends to fail. That cuts both ways, so a broad clause is worth a lawyer's hour before you sign.
Why does the general contractor care so much about my workers comp?
Because in New Jersey the general contractor pays if you have none. Under R.S. 34:15-79, a contractor who hires a subcontractor with no workers comp becomes liable for the sub's injured worker's benefits, with a right to recover from the sub. That is why a New Jersey general contractor will not let you on site without a certificate showing your own policy. See whether you need workers comp in New Jersey.
What does it cost to close the gaps?
Illustrative national ranges for a small contractor with a clean claims history, not New Jersey figures. What moves them: your trade, payroll, claims history, and the insurer.
| Fix | Illustrative cost | Time |
|---|---|---|
| Add your customer as an additional insured | Often no charge with blanket wording, otherwise $50 to $300 | 1 to 3 business days |
| Waiver on workers comp | About 2 to 5 percent of the premium for that job | 1 to 3 business days |
| $1,000,000 umbrella | Roughly $600 to $2,500 a year | 1 day to 2 weeks |
| $5,000,000 umbrella | Roughly $3,000 to $12,000 a year | 1 to 3 weeks |
If the contract is a bid package, see who reviews a bid's insurance requirements for free in New Jersey. If you need a home improvement registration, see what insurance a New Jersey contractor registration needs.
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 drywall subcontractor in Paterson signs a $380,000 subcontract on a school addition in Hackensack. Exhibit C asks for $1,000,000 per occurrence general liability, a $2,000,000 umbrella, $1,000,000 auto, workers comp with a waiver, and additional insured wording that continues after the job is done. It also asks the sub to cover the general contractor's losses from any accident on site, no matter who caused it.
What went wrong: The sub carries $1,000,000 general liability and state-minimum auto, no umbrella, and no waiver on workers comp. The contract would make him pay even for accidents that were entirely the general contractor's fault.
What it cost: Illustrative numbers: the umbrella runs about $1,800 a year, the auto limit increase about $750, the waiver about $340, and the completed operations wording about $150. Without a review, the certificate would have been rejected the week of mobilization, at roughly $1,500 a day in idle crew cost.
The fix: A New Jersey broker placed the coverage in eight days and flagged the indemnity clause. The general contractor narrowed it to accidents the sub caused or shared fault in, which is what N.J.S.A. 2A:40A-1 allows. Nothing needed a rush fee because the exhibit went to the broker before signing.
Frequently asked questions
Q: Who can help me meet a construction contract's insurance requirements in New Jersey?
An independent commercial insurance broker licensed in New Jersey. A broker reads the insurance section, matches it to your policies, and places what is missing. Morrow does this review for free.
Q: Does the broker charge for reviewing my contract?
Usually not. Reviewing the contract is how a broker learns what coverage to place.
Q: Can a New Jersey contract make me pay for the general contractor's mistakes?
Not when the accident was entirely their fault. You can still be made to pay for shared fault if the contract says so clearly.
Q: Do I need workers comp in New Jersey if I only have one part-time employee?
Yes. New Jersey requires it from the first employee, with no headcount or hours threshold.
Q: Is my state-minimum auto policy enough for a New Jersey contract?
Almost never. The table above has the New Jersey minimums. Most contracts want a $1,000,000 combined single limit, so expect to raise it.
Q: How long does it take to fix the gaps a broker finds?
Endorsements usually take one to three business days. An umbrella takes one day to two weeks, longer for $5,000,000 or more. Send the contract the day it arrives.
How Morrow helps
Morrow is a licensed independent commercial insurance brokerage that works with contractors and trades every day. Reading a New Jersey contract's insurance exhibit and closing every gap in it is the most common thing our contractor clients ask us to do.
- 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.