N.J. Admin. Code § 5:43-5.2

Current through Register Vol. 56, No. 11, June 3, 2024

Section 5:43-5.2 - Insurance

(a) Evidence of builder's risk or all risk insurance must be provided prior to the closing of the Department loan or grant and the appropriate level of coverage is required for the duration of the construction. The minimum amount of the insurance shall be the insurable (replacement cost) value established by the appraisal submitted to the court.

(b) Evidence of Commercial General Liability Insurance shall be required for all completed projects and must be carried at acceptable levels for the duration of the Department loan or grant.

(c) Professional liability insurance for the general contractor and architect shall be required as follows:

1. General contractor:

i. General liability;

ii. Workmen's compensation;

iii. Contractor's public liability in the sum of $1,000,000/$3,000,000 and property insurance of $250,000/$500,000;

2. Architect:

i. Errors and Omission Insurance of 10 percent of the construction costs or $250,000, whichever is greater.

(d) All insurance must be issued by a firm with an A.M. Best rating of B+ or better and shall conform to the requirements set forth in Appendix K of this chapter, incorporated herein by reference.

(e) A requirement set forth in this section may be waived or adjusted upon a finding that such requirement would prevent an entity that is otherwise fully qualified to act as a receiver from being appointed receiver, so long as that entity can demonstrate a sufficient level of financial responsibility.

N.J. Admin. Code § 5:43-5.2