Minimums: $500,000 combined property damage and bodily injury/death to one or more persons, per accident or occurrence
Licensed HVACR contractors must secure, maintain, and file with the Board a certificate of general liability insurance (or approved self-insurance) of at least $500,000 combined single limit.[1]
Surety BondRequired
Minimums: $3,000 surety bond payable to the State of New Jersey
No Master HVACR contractor may perform HVACR work in New Jersey until they have filed a $3,000 surety bond issued by a company authorized to transact business in the state.[1]
Appliance Repair
New Jersey does not license appliance repair as its own trade. However, appliance-repair businesses performing residential work generally must register as a Home Improvement Contractor Business (HICB) under the Contractors' Business Registration Act (N.J.S.A. 56:8-136 et seq.) unless they hold an HVACR (or other applicable trade) license and the work falls within that license's scope. As of the 2024 amendments (P.L. 2023, c. 237), HICB registration requires: (1) workers' compensation insurance unless exempt, (2) a tiered compliance bond/letter of credit -- $10,000 for contracts under $10,000 (or under $150,000 in trailing-12-month volume), $25,000 for contracts $10,000-$120,000 (or $150,000-$750,000 trailing volume), and $50,000 for contracts over $120,000 (or $750,000+ trailing volume), and (3) commercial general liability insurance of at least $500,000 per occurrence. Technicians handling refrigerants must hold federal EPA Section 608 certification, a federal, not state, requirement.
Workers' Compensation Threshold
New Jersey requires essentially all employers to carry workers' compensation insurance (or be approved for self-insurance) with no minimum employee-count threshold -- even a single employee triggers the requirement. Unlike many states, NJ does not let corporate officers exempt themselves: all corporations must cover any individual, including corporate officers, who performs services for the business. Sole proprietorships and partnerships/LLCs are only exempt for the principal owner/partners/members themselves -- any other worker (a single employee) triggers mandatory coverage.
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Frequently Asked Questions
Does New Jersey require insurance for HVAC contractors?▾
Yes. Master HVACR Contractor License (New Jersey State Board of Examiners of Heating, Ventilating, Air Conditioning and Refrigeration (HVACR) Contractors, Division of Consumer Affairs) requires general liability insurance, a surety bond.
How much liability insurance does an HVAC contractor need in New Jersey?▾
For the Master HVACR Contractor License, the required minimum is $500,000 combined property damage and bodily injury/death to one or more persons, per accident or occurrence.
Do appliance repair businesses need a license or insurance in New Jersey?▾
New Jersey does not license appliance repair as its own trade. However, appliance-repair businesses performing residential work generally must register as a Home Improvement Contractor Business (HICB) under the Contractors' Business Registration Act (N.J.S.A. 56:8-136 et seq.) unless they hold an HVACR (or other applicable trade) license and the work falls within that license's scope. As of the 2024 amendments (P.L. 2023, c. 237), HICB registration requires: (1) workers' compensation insurance unless exempt, (2) a tiered compliance bond/letter of credit -- $10,000 for contracts under $10,000 (or under $150,000 in trailing-12-month volume), $25,000 for contracts $10,000-$120,000 (or $150,000-$750,000 trailing volume), and $50,000 for contracts over $120,000 (or $750,000+ trailing volume), and (3) commercial general liability insurance of at least $500,000 per occurrence. Technicians handling refrigerants must hold federal EPA Section 608 certification, a federal, not state, requirement.
When is workers' compensation insurance required in New Jersey?▾
New Jersey requires essentially all employers to carry workers' compensation insurance (or be approved for self-insurance) with no minimum employee-count threshold -- even a single employee triggers the requirement. Unlike many states, NJ does not let corporate officers exempt themselves: all corporations must cover any individual, including corporate officers, who performs services for the business. Sole proprietorships and partnerships/LLCs are only exempt for the principal owner/partners/members themselves -- any other worker (a single employee) triggers mandatory coverage.
