GL Limits Most NJ Contractors Are Carrying Wrong Wrong

$1M/$2M is a floor, not a target

Almost every NJ commercial contract requires $1M per occurrence / $2M aggregate General Liability. So contractors carry exactly that and stop. The problem: a serious bodily-injury claim — a fall, a fire, a struck-by — can blow through $1M without trying. When it does, you're personally exposed for the gap.

The umbrella math

The instinct is to raise the GL to $2M/$4M. That's expensive, because the carrier prices a doubled primary limit as if both dollars will be used. The smarter move is a $1M GL backed by a commercial umbrella — $1M, $2M, or $5M of extra limit for a fraction of the cost, because the umbrella only prices for the rare event that the underlying limit is exhausted. A $2M umbrella over a clean stack often runs $700–$1,400/year.

Two structure details people miss

• Per-project aggregate. Without it, one bad claim eats the aggregate limit protecting every other job you have running. Most carriers offer it by endorsement.
• Products-completed operations limits. NJ's construction defect statute of repose runs ten years on most residential work. Your products-completed limit needs to last that long — and the coverage triggers on the policy in force when the claim is made, so don't let coverage lapse.

Quote the GL and umbrella together in one intake so the limits coordinate.