New Jersey Contractor Licensing

Home improvement and home elevation contractor businesses register with the Division of Consumer Affairs and must carry commercial general liability insurance of at least $500,000 per occurrence and workers compensation coverage unless exempted by law, and home elevation contractors must additionally carry cargo or other insurance that specifically covers home elevation activities in a minimum amount of $1,000,000 per occurrence.

Registrants also post additional security scaled to contract size: $10,000 where contracts are under $10,000 or prior 12 month contracts total under $150,000, $25,000 where contracts run $10,000 to $120,000 or prior 12 month contracts total $150,000 to $750,000, and $50,000 where contracts exceed $120,000 or prior 12 month contracts total $750,000 or more.

Under P.L.2023 c.237, individual licensure with exams and experience requirements phases in under the new State Board of Home Improvement and Home Elevation Contractors.

Electrical contracting requires both an electrical contractor license and a board issued business permit: the license holder can be the owner or an officer, partner, or employee actively engaged in the business, the license exam requires five years of practical experience, and the permit is backed by a $1,000 surety bond in favor of the State for a 36 month term plus a certificate of general liability insurance of at least $300,000 or a bank letter of credit in the same amount.

One licensed electrical contractor may qualify only one business permit, and the licensee assumes full responsibility for supervision of the company's electrical work.

Because New Jersey allows the electrical license holder to be an employee, a qualifying agent hired as a full time W2 employee can fill that role for companies whose owner is not personally licensed.

The plumbing board takes a different approach: every plumbing company must register a bona fide representative, a licensed master plumber who holds not less than 10 percent of the issued and outstanding shares of stock in a corporation, 10 percent of the capital of a partnership, or 10 percent of the ownership of any other firm (N.J.S.A. 45:14C-2), so an employment only arrangement does not satisfy the plumbing board.

Master HVACR contractor licensure requires five years of experience, at least four of them in an approved apprenticeship or training program, and the licensee must be a bona fide representative of the business, meaning an owner, partner, manager, or executive officer.

Municipal building permits and some local registrations still apply on top of the state layer.

Requirements change, verify current figures with the board before applying.