Changes to New Jersey Contractor Bond Requirements: What You Need to Know

Major changes are coming to New Jersey's home improvement contracting industry this year. If you're a Home Improvement Contractor Business (HICB) or Home Elevation Contractor Business (HECB) operating in New Jersey (NJ), you'll need to understand these new bonding requirements to maintain your registration and continue operating legally.

New Licensing Act Introduces Bond Requirements
The recently amended Contractors' Business Registration Act (CBRA) has established the Home Improvement and Home Elevation Contractor Licensing Act, bringing significant changes to the industry. One of the most important changes is the introduction of mandatory surety bonds for contractors, overseen by the newly formed New Jersey State Board of Home Improvement and Home Elevation Contractors.

Understanding the New Bond Requirements
The bond amount you'll need depends on your contract values:

• $50,000 Bond: Required for contractors handling individual contracts over $120,000 or annual contracts totaling $750,000 or more
  
  
• $25,000 Bond: For contracts between $10,000 - $120,000, or yearly contracts totaling between $150,000 - $750,000
  
  
• $10,000 Bond: Applies to contracts under $10,000 or annual contracts totaling less than $150,000

Important Deadlines and Renewal Information
All existing contractor registrations will expire on March 31, 2025. The renewal process began in January 2025, giving contractors time to secure their new bonds and complete the necessary paperwork. 

Take Action Now
Don't wait until the last minute to secure your contractor bond. Click here:
Home Improvement Contractor
Home Elevation Contractor

Get your New Jersey Home Improvement Contractor Bond today and ensure your business remains compliant with these new regulations.

Stay ahead of these regulatory changes and protect your contracting business by securing your bond early. This streamlined process makes it easy to get the coverage you need to continue operating legally in NJ.

If you are looking for more information about surety bonds and what you need to do to obtain one, reach out to TSIB and speak with one of our Surety experts.

TSIB’s Risk Consultants are currently servicing the following locations:
East Coast: New York City, NY; Bergen County, NJ; Fairfield County, CT; Philadelphia, PA
Texas: Austin, San Antonio, Houston, Dallas
California: Orange County, Los Angeles County, Riverside County, San Bernardino County, San Diego County

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