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.