Section 56:8-142 - Proof of commercial general liability insurance, cargo, other insurance, posting of bond; requirementsa. On or after December 31, 2005, every registered contractor business who is engaged in home improvements shall secure, maintain and file with the director proof of a certificate of commercial general liability insurance in a minimum amount of $500,000 per occurrence and workers' compensation insurance unless exempted by law.b. Every registered contractor business engaged in home improvements whose commercial general liability insurance policy or workers' compensation insurance policy is cancelled or nonrenewed shall submit to the director a copy of the certificate of commercial general liability insurance or workers' compensation insurance for a new or replacement policy which meets the requirements of subsection a. of this section as soon as is practicable following the cancellation or nonrenewal of the former policy, but in no case more than 10 days following the cancellation or nonrenewal of the former policy.c. Every home elevation contractor business engaged in performing home elevations, in addition to the insurance required pursuant to subsection a. of this section, shall secure and maintain cargo or other insurance that specifically covers home elevation activities, in a minimum amount of $1,000,000 per occurrence to cover damages or other losses to the homeowner, lessee, tenant or other party resulting from a home elevation, except as otherwise provided in this subsection. The Director of the Division of Consumer Affairs in consultation with the Department of Banking and Insurance may promulgate rules and regulations to implement this subsection, which rules and regulations also may require that contractor businesses engaged in home elevations secure and maintain additional insurance of such kind and in such amounts as the director may determine in consultation with the Department of Banking and Insurance.d. A home elevation contractor business, prior to entering into an agreement to perform a home elevation, shall provide proof of insurance to the homeowner including the issuing insurer, policy number, type, and amount of insurance coverage maintained by the contractor business in accordance with this section.e. Every contractor business that is engaged in home improvement or home elevation services shall maintain, in effect during the entire period of registration: (1) a compliance bond issued by one or more sureties authorized to transact business in this State;(2) an irrevocable letter of credit issued by a bank; or(3) securities, moneys, or other security acceptable to the division to fulfill the requirements of this section.f. The principal sum of the compliance bond, letter of credit, or securities, moneys, or other security shall be a minimum of: (1) $50,000 for the performance of services pursuant to a contract valued at more than $120,000 or for the performance of services, in the previous 12 months, for contracts valued at a minimum of $750,000;(2) $25,000 for the performance of services pursuant to a contract valued between $10,000 and $120,000 or for the performance of services, in the previous 12 months, for contracts valued between $150,000 and $750,000; and(3) $10,000 for the performance of services pursuant to a contract valued at less than $10,000 or for the performance of services, in the previous 12 months, for contracts valued less than $150,000.g. The contractor business shall, from time to time, to the extent that claims are paid, promptly replenish the amount of the compliance bond, letter of credit, securities, moneys, or other security maintained pursuant to paragraphs (1) through (3) of subsection f. of this section.h. The compliance bond, letter of credit, or securities, moneys, or other security shall cover penalties assessed by the division for violations of P.L. 2004, c. 16 (C.56:8-136 et seq.).i. The compliance bond, letter of credit, or securities, moneys, or other security shall not be payable for treble damage claims pursuant to P.L.1960, c.39 (C.56:8-1 et seq.).j. The aggregate liability of the surety, bank, or issuer of securities, moneys, or other security to all individuals for all breaches of the conditions of the compliance bond, letter of credit, or the securities, moneys, or other security shall not exceed the amount of the bond, letter of credit, or the securities, moneys, or other security.k. Every bond, letter of credit, or securities, moneys, or other security shall provide that cancellation or nonrenewal of the bond, letter of credit, or securities, moneys, or other security shall not be effective unless and until at least 10 days' notice of intention to cancel or nonrenew the bond, letter of credit, or securities, moneys, or other security has been received in writing by the contractor business from the surety, bank, or other issuer.l. Dollar amounts required pursuant to this section for general liability insurance and for a compliance bond, letter of credit, or securities, moneys, or other securities may be adjusted by the division if a contractor business registered pursuant to section 3 of P.L. 2004, c. 16 (C.56:8-138) provides only limited specialty services.Amended by L. 2023, c. 237, s. 32, eff. 1/8/2024.Amended by L. 2014, c. 34,s. 4, eff. 10/1/2014.Amended by L. 2004, c. 155, s. 5, eff. 11/8/2004.Amended by L. 2004, c. 155, s. 3, eff. 11/8/2004.Added by L. 2004, c. 16, s. 7, eff. 12/31/2005.