How to Get a New Jersey Roofing License

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Surety Bond Professionals is a family-owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all of your New Jersey roofing license bond needs. Learn how to get a New Jersey roofing license, below.

What Roofing Licenses Are Issued in New Jersey?

New Jersey doesn’t license roofing contractors at the state level, but they’re required to be registered as are all home improvement contractors and general contractors. Consumers don’t necessarily understand the distinction between a license and a registration, so the New Jersey Division of Consumer Affairs specifically prohibits registered contractors from using the word “license” in any advertisements or written documents.

Some municipalities, however, do require roofing contractors to obtain a local license before they can operate legally within that jurisdiction. If you’re planning to run a roofing business in the state of New Jersey, you’ll first need to check with local officials to find out what, if any, licensing requirements exist.

What Are the Steps in the Licensing Process?

Since roofing contractors are licensed only by certain municipalities, there’s no uniform licensing process. Specific licensing requirements and procedures vary by jurisdiction. In general, however, they may involve:

  • Documentation of the contracting entity’s legal status (e.g., sole proprietorship, LLC, partnership, corporation)
  • Criminal background checks
  • Proof of liability insurance
  • Proof of workers’ compensation insurance if there are employees
  • A contractor’s license bond

Again, you’ll need to inquire about the requirements in the area where you plan to operate as a roofing contractor.

Why is a Roofing Contractor License Bond Required?

When a license bond is required, the purpose generally is to:

  • Ensure the roofing contractor’s compliance with local building codes and related ordinances
  • Guarantee the payment of taxes due to the local taxing authority
  • Protect the municipality and consumers against financial losses stemming from the contractor’s unlawful or unethical actions.
  • Provide a source of funds for paying damages to any party suffering such a loss.

The local office requiring the bond (referred to as the bond’s “obligee”) will inform you as to the required bond amount. This “penal sum” is the maximum amount that will be paid out on a single claim. Typically, there must be an active license bond continuously in force to prevent license suspension or revocation.

How Are Roofing Contractor License Bond Claims Paid?

The terms of the surety bond agreement make the roofing contractor (the bond’s “principal”) entirely responsible for paying all valid claims against the bond. In practice, however, the “surety” that authorized the bond usually expedites resolution of a claim by paying it initially on behalf of the principal. This payment serves as an extension of credit to the principal, who must subsequently repay the resulting debt to the surety.

How Much Does a Roofing License Bond Cost?

As is the case with most surety bonds, the annual premium is only a small percentage of the bond’s penal sum. The surety sets that percentage, the premium rate, for each bond applicant based largely on the principal’s personal credit score. That’s the best indicator of the risk to the surety in paying claims on behalf of the principal. With good credit, the premium rate could be as low as one percent of the bond’s penal sum.

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Our surety bond professionals will get you the New Jersey roofing license bond you need at a competitive rate.