The Cost of Not Having the Right Insurance as a Contractor in NJ
For contractors in New Jersey, insurance isn’t just an added expense—it’s a safeguard against financial loss. Without the right coverage, even a minor incident can result in significant out-of-pocket costs, legal trouble, or business closure. Here are a few real-life scenarios that highlight the risks.
Real-Life Examples of Costly Mistakes:
Injury on the Job – $500,000+ Settlement
A subcontractor working on a home renovation in Morris County slipped and suffered a serious injury. The contractor didn’t have workers’ compensation insurance, assuming the subcontractor’s own policy would apply. The result? A lawsuit leading to a $500,000 settlement and fines from the state.
Property Damage – $100,000+ in Repairs
A Morristown roofing contractor was working on a project when strong winds sent debris onto a neighbor’s property, damaging their car and windows. Without general liability insurance, the contractor was responsible for covering the $100,000 repair costs out of pocket.
Uninsured Vehicle Accident – Business Closure
A contractor in Roxbury used a personal vehicle for work without a commercial auto policy. When an accident occurred, their personal insurance denied the claim, leaving them responsible for $250,000 in damages. The financial burden forced the contractor to shut down their business.
Balancing Costs While Protecting Your Business
In today’s economy, the rising costs of materials, labor, and equipment make it more important than ever for contractors to watch expenses carefully. However, cutting back on insurance to save money can lead to far greater financial consequences if something goes wrong. A single lawsuit, property damage claim, or workplace injury can put a contractor out of business. While it’s essential to control costs, ensuring adequate insurance coverage remains a critical part of protecting both assets and long-term financial stability.
BIS Improved Insurance Agency is a specialist in contractor’s insurance coverage. Give us a call today to review all your exposures 973-683-1000
BIS Improved Insurance Agency
973-683-1000
Follow us on Facebook & Instagram for more safety and Insurance Tips!
The Prepare and Protect column, presented by BIS Improved Insurance Agency, aims to provide entertaining and useful advice related to safety, preparedness and protection.
BIS Improved Insurance Agency, situated in Morris Plains, NJ for four decades, serves Commercial Insurance and Personal Insurance needs in Morris County, NJ. - especially Roxbury, Morris Plains and Morristown. The agency is owned by Martin Agacinski and Michael Geraghty.
