The New Jersey Board of Master Plumbers requires this surety bond as a way to protect the public from Master Plumbers who do not follow the rules and regulations set forth. You must include a copy of this bond in your Master Plumbing Contractor License application.
In the event that a contractor fails to complete a contract, operate in compliance with state regulations, or a complaint is lodged with the Board, the surety company will reimburse the client in question up to the $3,000 bond amount. If the surety reimburses damages, it will then seek repayment from the Principal (bond holder). This bond is a guarantee that the Master Plumber understands and agrees to adhere to all rules, regulations, and laws set forth by the municipality, state of New Jersey, and the NJ Board of Master Plumbers.
A New Jersey Master Plumbers bond operates like any other surety bond - it is a three-way agreement between you (the principal), your underwriter (surety), and the obligee (NJ board of Master Plumbers).
All licensed NJ master plumbers are required to hold a NJ Master Plumbers Bond.
New Jersey requires that any individual applying for or renewing a New Jersey Master Plumbing Contractor License be bonded by an approved surety with a Master Plumber Surety Bond.
If you operate fraudulently, break laws, or violate any contracts, the surety will pay damages to the injured party, and then require you to reimburse them for the payments made. It should be your top priority as a surety bond principal to never let an issue reach the point of a claim. Be sure that your employees understand and adhere to all laws and regulations put in place by the state of New Jersey and the New Jersey Board of Master Plumbers, to ensure your business’ reputation, as well as avoid any surety claims. Read more about wrongful claims below.
If you feel the claim is false or exaggerated, your surety will complete all due diligence and deny the claim. In this case, you can continue your business as usual. Claims that are found to be invalid against your bond will have no effect on your licensure, bond, or business operations.
It should be a top priority to avoid claims against your master plumbers surety bond at all costs. If a claim is filed, the principal is obligated to reimburse the surety for the entire amount that was paid out. If there is an issue that may result in a claim, it is advised that the bond-holder do whatever they can to resolve the issue before this becomes the case. Your surety bond is a promise to fulfill your obligations and duties, as well as follow the law. A claim against this bond indicates that the bond-holder knowingly and intentionally violated this agreement. If you are operating in compliance with this agreement, the potential claim may stem from a miscommunication with a client. It is very important to clear up this miscommunication before the claim is submitted. The Principal is legally responsible for all valid claims submitted against them. Your surety will give you the chance to resolve the claim. If you fail to resolve the claim, your surety will handle it, and you will be obliged to reimburse the surety for damages.
Applying for your bond through MassBond.com is quick and simple. After you submit your application and payment, we will issue your surety bond instantly.
Your New Jersey Master Plumbers Bond serves as a promise between you (the principal), the NJ Board of Master Plumbers (the obligee), and your surety, that you understand and agree to adhere to all state guidelines for licensed Master Plumbers. A Master Plumber surety bond has the additional benefit of signaling that you are a trustworthy and accountable contractor. Above all, you need a Master Plumbers Bond because it is a prerequisite for any issuance or renewal of a NJ MAster Plumbing Contractor license.
The obligee for your surety bond is: NJ Board of Master Plumbers 124 Halsey St #6 Newark, NJ 07102
A NJ Master Plumbers Bond is issued for the amount of $3,000. Luckily, the bond amount is not what you are required to pay. The principal (you) will pay a premium to the surety, a flat fee of $25 for a 2-year term.
This is an Instant Issue bond, meaning that there is no underwriting for the bond, and therefore no credit check. Your credit score is not factored into your application.
Your bond premium is a flat fee of $50 for a 2-year bond term. This Instant Issue Bond is covered by the MassBond Price Guarantee.
MassBond Instant Bonds are covered by our Lowest Price Guarantee. We promise the best rate for a 2-year NJ Master Plumbers Bond, and will refund you the difference if you find a better price. Read more about our guarantee HERE.
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