Who requires it
New Jersey Division of Consumer Affairs (HICB / HECB registration)
License & permit · New Jersey
New Jersey Home Improvement & Home Elevation Compliance Bond
Home improvement and home elevation contractor businesses registered with New Jersey’s Division of Consumer Affairs must keep additional security—often a compliance surety bond—under N.J.S.A. 56:8-142. Official materials use one three-tier schedule ($10,000 / $25,000 / $50,000) for both HICBs and HECBs based on contract size and prior-year volume, not two unrelated fixed amounts.
Common bond amount
$10,000 / $25,000 / $50,000
Volume tiers for both HICBs and HECBs. Do not treat one fixed amount per trade label as the whole schedule.
How you file
Compliance bond, irrevocable letter of credit, or other Division-accepted security
Renewal
Maintain throughout annual registration; replenish after claims
Who requires it
Registered home improvement contractor businesses and home elevation contractor businesses must maintain additional security throughout registration. DCA FAQ and registration notices treat the requirement as part of initial registration, renewal, and reinstatement. Exempt categories under the Contractors’ Business Registration Act (for example certain licensed professionals acting within scope, or work on one’s own family property) are statute-specific—confirm before skipping security.
How much is required
N.J.S.A. 56:8-142 establishes three security tiers by contract size and prior-year volume: $50,000 when a single contract exceeds $120,000 or prior-12-month contracts total at least $750,000; $25,000 when a single contract is between $10,000 and $120,000 or prior-12-month totals are between $150,000 and $750,000; $10,000 when a single contract is under $10,000 or prior-12-month totals are under $150,000. Use the higher tier your work triggers. Do not assume a single fixed $10,000 home-improvement or $25,000 home-elevation amount covers every registrant.
How to get and file it
Provide a compliance bond from a surety, an irrevocable letter of credit from a bank, or other security the Division accepts. Name the agency as “NJ Division of Consumer Affairs” at the Halsey Street / P.O. Box address on current FAQ materials. DCA states there is no mandatory state form so long as the filing meets N.J.S.A. 56:8-142(e)–(l), including restoring the amount after claims, covering Division penalties (not Consumer Fraud Act treble damages), claims not exceeding the security amount, and at least 10 days’ notice before cancellation or nonrenewal. Submit proof with registration and keep the security effective on or before the submission date—future-dated instruments are rejected. One compliant security can cover multiple contracts if the amount stays at the required tier. If a claim drops the remaining amount below the minimum, restore it promptly. HICB/HECB registration renews annually (March 31 cycle in Division materials); renew or replace security before it lapses.
Cost note
Tier figures are the required bond amount, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- $10,000 tier
- Single contract under $10,000, or prior-12-month contracts under $150,000
- $25,000 tier
- Single contract $10,000–$120,000, or prior-12-month contracts $150,000–$750,000
- $50,000 tier
- Single contract over $120,000, or prior-12-month contracts at least $750,000
- Who requires it
- NJ Division of Consumer Affairs (address on current DCA FAQ / filing instructions)
- Also required (registration)
- Commercial general liability insurance at least $500,000 per occurrence, plus workers’ compensation unless exempt—separate from the bond
Official sources
Related resources
Frequently asked questions
Why one guide for home improvement and home elevation?
P.L. 2023, c.237 and DCA notices apply the same N.J.S.A. 56:8-142 additional-security schedule to HICBs and HECBs. A lone $10,000 or $25,000 figure is only one tier of that schedule, not a universal amount for every home-improvement or home-elevation registrant.
Do I need a separate bond for every home-improvement contract?
No. DCA FAQ materials say one additional security is enough if its amount meets the Act for the work you perform.
Is cargo insurance the same as this compliance bond?
No. Home elevation registration also involves separate liability and cargo/other insurance requirements. Additional security under 56:8-142 is its own filing.
Related New Jersey bond guides
Electrical Contractor Bond
$1,000
Anyone in the electrical-contracting business under New Jersey’s Electrical Contractors Licensing Act must post a $1,000 surety bond before doing electrical work in the state. N.J.S.A. 45:5A-19 names the State of New Jersey as the agency that requires the bond and ties it to faithful performance of that Act.
HVACR Contractor Bond
$3,000
A Master HVACR contractor licensed under New Jersey’s HVACR Contracting License Law must post a $3,000 surety bond before doing HVACR work in the state. N.J.S.A. 45:16A-23 sets that amount and bars municipalities from demanding a duplicate local bond for the same act.
Master Plumber Bond
$3,000
A licensed New Jersey master plumber must post a $3,000 surety bond before doing plumbing work in the state. N.J.S.A. 45:14C-26 sets that statewide amount and stops municipalities from requiring a matching local bond for the same licensing act.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Continue with a New Jersey application
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Last verified 2026-08-07. This guide is based on verified educational content and official sources.
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