What are the legal requirements for insurance in the construction industry?

In the state of New Jersey, construction projects must be insured in order to meet the legal requirements of the construction industry. Insurance is necessary to protect both the contractor and the homeowner from potential losses or damages caused by services, materials, and other items related to the construction project. A contractor must have a valid contractor’s license in order to legally work on any construction project in New Jersey. Additionally, most projects require the contractor to carry a specific type of insurance. This insurance must meet the requirements of the state and must be obtained prior to starting the project. The required insurance for residential construction projects in New Jersey must include general liability, workers’ compensation, and property damage coverage. General liability insurance helps protect against potential lawsuits and other unforeseen issues that may arise in the course of construction. Workers’ compensation insurance covers medical and other expenses related to injuries or accidents related to the project. Lastly, property damage coverage helps protect the property and homeowner in the event of any accidental damage or destruction of the property. Contractors are also required to have errors and omissions insurance. This coverage helps protect the contractor in the event that their services are found to be inadequate or incomplete, resulting in losses for the homeowner. Having the proper insurance is an important part of the legal requirements of the construction industry in New Jersey. It allows contractors to offer their services without fear of significant losses due to unforeseen circumstances.

What are the legal requirements for insurance in the construction industry?

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