All Home Improvement Contractor (HIC) licenses in New Jersey must be renewed by March 31 this year. You can renew online by clicking HERE.
New Requirements for 2025
This year, there are new requirements for HIC and Home Elevation Contractor (HEC) license renewals. The key changes include:
◾Workers’ Compensation Insurance Requirement:
◾HICs/HECs must now maintain workers’ compensation insurance unless exempt under the law.
◾If you are a sole proprietor or operate through a single-member LLC with no employees, you are exempt from this requirement but must provide a letter of exemption (see samples here).
Additional Security Requirement:
◾HICs/HECs must obtain one of the following forms of security:
◾A compliance bond
◾A letter of credit
◾A certified check, money order, or other approved securities
The required security amount depends on the value of contracts entered into by the business. For example, if your total sales in 2024 were $100,000, consisting of five contracts of $20,000 each, you would be required to provide $10,000 in additional security.
How to Provide Additional Security
You have three options for fulfilling the security requirement.
- Obtain a Surety Bond:
◾Contact your insurance broker and request a surety bond that meets the state’s requirements.
◾Ensure it includes Power of Attorney.
◾You can send them the sample documents provided online here. - Submit a Certified Check or Money Order:
◾If you prefer to submit a certified/bank check as your security, include it with your renewal application and send it to the Division of Consumer Affairs, Regulated Business Section, 124 Halsey St., 7th Floor, PO Box 46016, Newark, NJ 07101, ATTN: HICB/HECB Unit. - Provide a Bank Statement:
◾If you have a sufficient bank balance, you may submit a bank statement as proof of additional security.
Need More Information? Contact the NJ Division of Consumer Affairs at (973) 424-8150. Visit their office, Monday–Friday, 10 a.m.-2p.m., 124 Halsey St., 7th Floor, Newark, NJ, 07102.
If you need a referral to an insurance broker, contact us or email us at info@goldendragonroofing.com. Disclaimer: The information provided does not constitute legal or insurance advice.
