Please note that the following information is related to contractor’s license bonds. If you are a contractor seeking information on obtaining contract surety bid and performance bonds, please visit our contract bond page.
What is a New Jersey contractor’s license bond?
In New Jersey, depending on the county, town or municipality you work in as a contractor, there may be local codes and statues governing contractor’s license bond requirements. The State of New Jersey requires contractor’s license bonds for certain contractors to be held prior to undertaking construction services. Contractor’s licenses bonds generally insure that the contractor will comply with all codes and laws covered by the bond. The State of New Jersey, or another local agency, will be named as the obligee on the bond. A contractor’s license bond must be obtained from an insurance company licensed to write surety bonds in New Jersey.
Obtaining Contractor’s License Bonds for My Trade.
Contractor’s license bonds may be required in New Jersey on a state, county, town or municipal level. Since Colonial is a direct and digital insurance company, you can easily obtain a bond customized to your location’s requirements. Below are a few examples of state-wide requirements by trade.
- Electrical contractors require a license bond in the amount of $1000.
- HVACR contractors require a license bond in the amount of $3000.
- Plumbing contractors require a license bond in the amount of $3000.
Colonial issues these examples of contractor’s license bonds, as well as all other types of contractor’s license bonds required by New Jersey counties, municipalities and towns.
What is the process to obtain the bond?
Colonial offers one of the fastest ways to obtain a contractor’s license bond. We are the insurance company — which means no agent, no broker, and no middleman. There is no turnaround time to obtain your bond. The steps are simple- get a free quote online, fill out your information, answer our underwriting questions, and enter your payment method. Your bond will be available in a PDF or original form, and always accessible to you online. It’s that simple!
What Do Contractor’s License Bonds Cost?
Contractor’s license bonds are reasonably priced and easy to obtain — so that you can run your business. You may notice that with other insurance agents and middlemen companies, your premium rate will fluctuate and include additional hidden fees and costs. Not at Colonial. We offer a flat rate for each contractor’s license bond.
Does it matter where I get my bond?
It is important to understand how surety bonds work, and who is the insurance company issuing your bonds. It is easy to run your business when you deal direct with a quality insurance company licensed in New Jersey to write surety bonds. Colonial is an A (Excellent) rated insurance company by A.M. Best, that has been incorporated since 1930. We are Treasury listed, and licensed and admitted in all U.S. states and territories.