The State of New Jersey Department of Consumer Affairs may require particular bonds for certain professional licenses. The bond amount could be anywhere from $1,000 to $25,000 but most are $5,000 or $10,000.
These bonds are required for certain professional licenses where you’re applying to do business. Part of the requirement that the Legislature of the State of New Jersey came up with is to have a bond posted, to protect consumers in the event the licensed party either acts improperly or files bankruptcy.
As a condition of issuing the license, the state requires the bond being filed to cover the license term, and the bond generally continues every year until it is canceled. Cancellation usually requires 60 days’ written notice. In order to stay in compliance with the Department of Consumer Affairs, the license holder needs to keep this bond in full force and effect.
To underwrite the obligation before issuing the bond, the surety will look at the applicant’s credit through a credit check. Another way they look at someone’s ability to perform this job is to look at their background and see whether or not they previously worked in the profession for which they are applying for a license. They will also look to see if the license holder owns a home, shows evidence of roots in the community, and longevity in the state in which they’re doing business.
If you’re applying for a professional license and you know a bond is going to be required, give me a call or send me an email. I can send you a simple application to fill out and get you the terms for the bond immediately.
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