New Jersey's New Home Improvement Contractor Surety Bond Law: What You Need to Know
December 24, 20247 min readBy Can Do Surety Bonds
In January 2024, Governor Murphy signed P.L. 2023, c. 237 into law, amending the Contractors' Business Registration Act and establishing the Home Improvement and Home Elevation Contractor Licensing Act. This legislation established additional-security requirements for home improvement and home elevation contractor registrations in New Jersey. A compliance bond is one permitted security option alongside other acceptable security.
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Request a quoteBond Amounts Based on Contract Values
If a contractor selects a compliance bond as the additional-security option, the bond amount is determined by either single contract value OR total annual contracts in the previous 12 months:
$10,000 Bond: For single contracts under $10,000 OR annual contract totals less than $150,000
$25,000 Bond: For single contracts $10,000-$120,000 OR annual contract totals $150,000-$750,000
$50,000 Bond: For single contracts over $120,000 OR annual contract totals $750,000 or more
Key Requirements
All Home Improvement Contractor Businesses (HICBs) and Home Elevation Contractor Businesses (HECBs) must maintain the required additional security to obtain, renew, or reinstate their registration. A compliance bond is one permitted option, and the obligee for that bond is the New Jersey Division of Consumer Affairs.
Historical Implementation Timeline
- Law signed: January 8, 2024
- Initial renewal applications opened: January 2025 (historical)
- Initial registration expiration date: March 31, 2025 (historical)
For current HIC business registration filing dates, confirm the latest guidance with the NJ Division of Consumer Affairs. A selected compliance bond follows its own term and filing requirements.
What the Bond Protects
The compliance bond is a three-party agreement between the contractor (principal), NJ Division of Consumer Affairs (obligee), and the bonding company (surety). It protects consumers from contractor violations, incomplete work, or failure to meet contractual obligations.
Additional Insurance Requirements
In addition to the selected additional-security option, contractors must maintain General Liability Insurance ($500,000 per occurrence for home improvement work, $1,000,000 for home elevation services) and Workers' Compensation Insurance unless legally exempt.
Agency Reference Pricing
- $10,000 bond: Agency reference pricing may start at $100 annually
- $25,000 bond: Agency reference pricing may start at $125 annually
- $50,000 bond: Agency reference pricing may start at $250 annually
Final premium and applicable fees depend on eligibility, carrier, underwriting, the bond amount, and the current application.
Exemptions
The following are exempt from bond requirements: individuals performing work on their own property, work for charities or non-profits, and licensed professionals working within their scope of practice.
Need help reviewing the applicable security option? Contact Can Do Surety Bonds at (609) 491-7404 for a quote. Same-day issuance may be available after requirements, eligibility, and underwriting are confirmed.