Contractors in New Jersey are regulated by the state's Contractor's Business Registration Act (CBRA). NJ contractors specializing in home improvement and home elevation are now required to show evidence of obtaining the corresponding surety bond based on the amount of the contract OR the total dollar amount of annual contracts. This surety bond is NOT an insurance policy. Rather, the surety bond is a financial guarantee for the CBRA and your customers that you will be in compliance with all New Jersey state laws, rules, and regulations related to the performance of your contractual duties.
Contractors in New Jersey, regulated by the state's Contractors Business Registration Act (CBRA), have a new licensing requirement. They are now required to provide evidence of obtaining the appropriate surety bond which will serve as a financial guarantee of compliance for the state and its residents of all applicable laws, rules, and regulations, related to the performance of contractor-related duties.
This surety bond is not an insurance policy, and must not be treated or thought of as such. Whereas in insurance, the policy has the goal of protecting you, surety bonds protect others ---your clients --- from failures to abide by regulations in the performance of your professional duties which in turn causes harm. Another signficant difference between insurance and surety bonds is that claims paid against your surety bond must be reimbursed in full by you to the surety.
Accordingly, New Jersey contractors must purchase a surety bond amount that corresponds to the dollar amount of their individual job or the total aggregate value of their jobs within a calendar year. This is discussed in the next section.
Our agency can provide you with whatever NJ home improvement surety bond amount you require. Our agency cannot, however, tell you which amount of surety bond to purchase. You must tell us the amount of the home improvement contractor bond that you are required to purchase.
If you have a question about the amount of surety bond that you require or other matters relating to compliance with your professional obligations, you will want to contact and query the New Jersey's Division of Consumer Affairs which regulates contractors in the state.
New Jersey home improvement and home elevation contractors are currently required to purchase one of three surety bond amounts:
Premiums for the New Jersey home improvement contractors surety bond are largely determined by your credit score. Our agency will take a quick application from you, and depending on circumstances, can have the bond issued in the same day.
Premiums for these bonds can be as little as 1% of the the bond amount required ($100, $250, or $500 annually); however, those amounts go northbound, depending on your credit scoring.
Until an application is taken and then reviewed by a sureyt bond underwriter (and surety agency perform "soft inquiries") we will not be able to tell you what your annual premium will be.
About Us
AmeriPro Surety Bonds is a surety bonds-only agency providing surety bond throughout our great nation. Please call us 844-589-9732
