New Jersey Master Plumber Bond: A Comprehensive Guide
This guide provides information for insurance agents to help contractors on New Jersey Master Plumber bonds
At a Glance:
- Lowest Cost: $50 per year or $5 per month
- Bond Amount: $3,000
- Who Needs It: All individuals and businesses seeking to obtain a master plumber license in the State of New Jersey
- Purpose: To ensure the public will receive compensation for any damages should the plumber fail to comply with contractor licensing law
- Who Regulates Master Plumbers in New Jersey: The New Jersey Board of Examiners of Master Plumbers
Background
New Jersey Administrative Code 13:32-2.5 requires master plumbers operating in the state to obtain a license with the Board of Examiners of Master Plumbers. The New Jersey legislature enacted the licensing laws and regulations to ensure that master plumbers engage in ethical business practices. In order to provide financial security for the enforcement of the licensing law, contractors must purchase and maintain a $3,000 master plumber surety bond to be eligible for licensure.
What is the Purpose of the New Jersey Master Plumber Bond?
New Jersey requires plumbers to purchase the Master Plumber Bond as part of the application process to obtain a master plumber license. The bond ensures that the public will receive compensation for financial harm if the plumber fails to comply with the licensing regulations. In short, the bond is a type of insurance that protects the public if the plumber breaks licensing laws.
How Can an Insurance Agent Obtain a New Jersey Master Plumber Surety Bond?
BondExchange makes obtaining a New Jersey Master Plumber Bond easy. Simply login to your account and use our keyword search to find the “contractor” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
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Is a Credit Check Required for the New Jersey Master Plumber Bond?
No, a credit check is not required for the New Jersey Master Plumber Bond. Because this bond is considered relatively low-risk, the same low rate is offered to all master plumbers in New Jersey.
How Much Does the New Jersey Master Plumber Bond Cost?
The $3,000 New Jersey Master Plumber Bond costs either $50 per year or $5 per month.
How Does New Jersey Define “Master Plumber”?
To paraphrase New Jersey Administrative Code 13:32-1.3, a master plumber is an individual who performs or supervises plumbing-related work as an independent business.
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How Do Plumbers Apply for a Master License in New Jersey?
Plumbers in New Jersey must navigate several steps to secure their master plumber license. Below are the general guidelines, but plumbers should refer to the licensing statutes for details on the process.
License Period – The New Jersey master plumber license expires on June 30 of every odd-numbered year (2021, 2023, etc.) and must be renewed before the expiration date
Step 1 – Meet the Experience Requirements
Applicants for a master plumber license must have the necessary experience as required by the Board of Examiners of Master Plumbers. Plumbers must meet the following criteria to obtain a New Jersey master plumber license:
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- Is 21 years of age or older
- Meets one of the following experience requirements:
- Has completed an approved four-year apprenticeship program and has one year of practical hands-on experience as a journeyman plumber
- Has a bachelor’s degree in mechanical, plumbing, or sanitary engineering and has one year of practical hands-on experience
Step 2 – Purchase a Surety Bond
Plumbers must purchase and maintain a $3,000 master plumber surety bond
Step 3 – Complete the Application
All regulatory master plumber license applications should be mailed to the following address:
New Jersey Office of Attorney General
Division of Consumer Affairs
State Board of Examiners of Master Plumbers
124 Halsey Street, 6th Floor, P.O. Box 45008
Newark, New Jersey 07101
Plumbers should complete the application, including the following steps:
3.a Experience Verification – Plumbers will need to provide verification of their educational and work experience including transcripts and detailed accounts of all work performed. All work experience must be verified by the plumber’s employer/supervisor.
3.b Fees – Applicants for the master plumber license must pay a $100 fee when submitting their license application.
3.c Photographs – All applications must contain two signed passport-style photographs
Step 4 – Pass the Exam
After the plumber has submitted their application, they will receive instructions on to register for and take the required licensure exam. The exam is administered by PSI, who can be reached here
How Does a New Jersey Master Plumber Renew Their License?
Master plumbers will be mailed a renewal packet approximately 60 days prior to their license expiration date. Plumbers must complete 5 hours of continuing education and pay a $160 fee each renewal period. The New Jersey master plumber license expires on June 30 of every odd-numbered year (2021, 2023, etc.) and must be renewed before the expiration date.
What Are the Insurance Requirements for the New Jersey Master Plumber License?
The State of New Jersey does not require master plumbers to purchase any form of liability insurance. Master plumbers will need to purchase and maintain a $3,000 master plumber surety bond.
How Do New Jersey Master Plumbers File Their Bond?
Plumbers should mail the completed bond form, including the power of attorney, to the following address:
New Jersey Office of Attorney General
Division of Consumer Affairs
State Board of Examiners of Master Plumbers
124 Halsey Street, 6th Floor, P.O. Box 45008
Newark, New Jersey 07101
The master plumber surety bond requires signatures from both the surety company that issues the bond and the plumber. The surety company should include the following information on the bond form:
- Legal name and location of the entity/individual(s) buying the bond
- Surety company’s name
- Date the bond is sealed
- Bond amount
- Bond term
- Witness signature
What Can Plumbers Do to Avoid Claims Against the New Jersey Master Plumber Bond?
To avoid claims on the Master Plumber Bond, plumbers must follow all license regulations in the state, including some of the most important issues below that tend to cause claims:
- Honor all contractual obligations when completing a project
- Do not engage in any acts of fraud
What Other Insurance Products Can Agents Offer Master Plumbers in New Jersey?
New Jersey does not require master plumbers to obtain any form of liability insurance. However, many reputable plumbers will seek to purchase this insurance anyway. Bonds are our only business at BondExchange, so we do not issue liability insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for New Jersey Master Plumber Customers?
New Jersey conveniently provides a public database to search for active master plumbers in the state. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
What other Contractor License Bonds are Required in New Jersey?
Contractors in New Jersey will need to obtain specific bonds correlating with their license type. Below are all the different contractor licensing bonds required by the State of New Jersey:
- Electrical Contractor: $3,000 bond limit
- HVACR Contractor: $3,000 bond limit
- Elevator, Escalator, and Moving Walkway Mechanics License: $10,000 bond limit