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How Do I Get Bonded in the State of New Jersey?

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New Jersey law requires participants in several occupations to carry a bond to work in their profession. To meet this need, New Jersey insurance companies underwrite these bonds and provide them to you for an annual premium. The type and amount of required bond will vary, based upon the needs of your client or the requirements of the legal entity requesting the bond.

Contact the bond obligee. This is the person or legal entity who will require you to carry a bond. This person or entity will be able to provide details regarding the requirements which must be met by the bond.

Determine the type of bond which you will need. It is easy to confuse the different types of bond offerings. Bonds are classified as being either fidelity bonds or surety bonds.

Fidelity bonds serve as insurance for your actions. If for instance, you are a bonded roofer, and because of your fraudulent actions your customer did not receive your services, then the company who underwrote the fidelity bond could pay for damages resulting from your fraudulent actions.

A surety bond functions as a guarantee that you will personally pay for any liabilities that will arise because of your conduct. When a company writes a surety bond, it is providing a guarantee that it will pay for your liabilities in the same manner as the underwriter of a fidelity bond as described above. However, the surety bond company will subsequently attempt to collect this same amount from you.

Determine the necessary amount of coverage needed. Different obligees will require your bond to be for different amounts. For instance, the New Jersey Department of Banking and Insurance requires New Jersey residential mortgage brokers to carry a surety bond of $150,000. The New Jersey Motor Vehicle Commission mandates that a driving school place only a $10,000 surety bond on file to receive a driving school license.

Comparison-shop among the different New Jersey insurance agents. Many of the New Jersey insurance companies who will underwrite bond offerings can be located with a simple online search for "New Jersey surety and fidelity bond companies." Compare the offerings of the different insurers to ensure you are receiving the lowest-possible premium cost.


Max Power started writing in 1996. Power was responsible for providing coverage of local and state governmental affairs for a web-boom-era news and civic-affairs news website. This experience provided him with a range of in-depth knowledge about legal, civic, political and governmental affairs. Power holds a Bachelor of Arts degree with a concentration in history.

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