New Jersey Contractor License Bonds
Affordable coverage for contractors throughout New Jersey.
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New Home Improvement and Home Elevation Contractor Bond
On January 8th, 2024, Governor Murphy signed P.L.2023, c.237 into law, introducing changes to home improvement contractor licensing requirements in New Jersey.
The legislation, now requires all home improvement and home elevation contractors to provide financial security in the form of a compliance bond, irrevocable letter of credit, or other acceptable securities.
These requirements must be met to obtain, renew or reinstate contractor registrations.
What are the New Jersey Home Improvement and Home Elevation Contractor Bond Amounts?
$50,000 Bond for the performance of services pursuant to a contract valued at more than $120,000 or for the
performance of services, in the previous 12 months, for contracts valued at a minimum of$750,000.
$25,000 Bond for the performance of services pursuant to a contract valued between $10,000 & $120,000 or for
the performance of services, in the previous 12 months, for contracts valued between $150,000 and
$750,000.
$10,000 Bond for the performance of services pursuant to a contract valued at less than $ 10,000 or for the
performance of services, in the previous 12 months, for contracts valued less than $150,000.
How Much Does a New Jersey Contractor Bond Cost?
The price to purchase a contractor bond is based on a rate quoted by a surety.
A surety is an insurance company that underwrites contractor bonds. Each surety will determine a rate typically using these factors:
- The personal credit of the owner or owners
- Contracting experience and industry experience
- Any prior bond claims if you've been licensed in the past
Our agency help clients save money by finding the lowest possible rate and price for contractor bonds.
Who Is Required To Purchase a New Jersey Contractor Bond?
New Jersey Division of Consumer Affairs has different boards and committees with licensing requirements specific to contractors in the state. These are:
- Home improvement and home elevation contractors
- Electrical contractors
- Plumbing contractors
- HVAC contractors
- Elevator, escalator, and moving walkway contractors
All newly licensed contractors performing work in these areas are required to purchase a contractor bond before a license will be issued.
Each license is independent. This means if you obtain an electrical license and you do work in home improvement, you will have to satisfy the bonding requirements for both of these disciplines.