NEW JERSEY PLUMBERS INSURANCE: COVERAGE, COSTS, AND LICENSING REQUIREMENTS
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Introduction
Why Plumbers in New Jersey Need Insurance
Plumbing is a high-risk profession in New Jersey, with strict licensing and insurance requirements enforced by the New Jersey State Board of Examiners of Master Plumbers. Whether you’re an independent contractor or run a plumbing business, having the right insurance protects you from liability claims, property damage, and legal risks.
This guide explains the insurance requirements, licensing process, costs, and regulations every plumber in New Jersey must follow.
NEW JERSEY PLUMBING LICENSE & INSURANCE REQUIREMENTS
Do You Need a License to Work as a Plumber in New Jersey?
Yes. Under N.J.S.A. 45:14 C-1 and N.J.A.C. 13:32-3.3(a)3, only a licensed Master Plumber or authorized plumbing contractor can legally perform plumbing work in the state. Employees working under a licensed plumber must be paid on a W-2 form to comply with state regulations.
Who is Eligible for a New Jersey Plumbing License?
New Jersey allows all individuals, regardless of citizenship status, to apply for a plumbing license as long as they meet all licensure requirements. A Social Security Number is not required to obtain a plumbing license.
Licensing Fees & Timeline
- Application Fee: $100
- License Issuance Fee: Assessed after passing the exam.
- License Processing Time: 15–20 days after payment.
- License Renewal: Every two years, expiring on June 30 of odd-numbered years. The renewal fee is $160.
How to Get a New Jersey Master Plumber License
To become a licensed Master Plumber, you must:
- Complete a four-year apprenticeship approved by the U.S. Department of Labor and gain one year of practical experience (1,200 hours) as a journeyman plumber in New Jersey.
- OR earn a bachelor’s degree in mechanical, plumbing, or sanitary engineering and complete one year of practical experience (1,200 hours) as a journeyman plumber.
- Pass the New Jersey Master Plumber Licensing Exam after approval by the State Board of Examiners of Master Plumbers.
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REQUIRED INSURANCE FOR PLUMBERS IN NEW JERSEY
To comply with New Jersey plumbing laws, licensed plumbers and plumbing contractors must maintain the following insurance policies:
General Liability Insurance (Required for Licensing)
New Jersey requires plumbers to carry $500,000 liability insurance per occurrence. This policy protects against bodily injury, property damage, and legal defense costs if someone makes a claim against your company.
Workers’ Compensation Insurance (Required for Businesses with Employees)
Plumbing businesses with one or more employees must carry workers’ compensation insurance, which covers:
- Medical expenses for work-related injuries
- Lost wages if an employee cannot work
- Rehabilitation costs and disability benefits
Tools & Equipment Insurance (Recommended but Not Required)
Covers damage, theft, or loss of expensive plumbing tools, including pipe cameras, drain cleaning machines, and power tools.
Surety Bond ($3,000 Required for Master Plumbers)
A $3,000 surety bond is required for Master Plumbers in New Jersey to protect clients from fraud, contract violations, or financial losses due to a plumber’s failure to complete a job correctly.
Commercial Auto Insurance (Required for Business Vehicles)
Plumbing businesses that use work vans or trucks must carry commercial auto insurance to cover:
- Accidents and collision damage
- Liability costs if your vehicle causes injury or property damage
- Vehicle theft and vandalism
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HOW MUCH DOES PLUMBERS INSURANCE COST IN NEW JERSEY?
Insurance costs vary based on business size, claims history, coverage limits, and location.
| Insurance Type | Estimated Annual Cost |
|---|---|
| General Liability Insurance | $700 – $2,000 |
| Workers’ Compensation Insurance | $3,500 – $8,000 |
| Commercial Auto Insurance | $1,200 – $3,000 |
| Surety Bond ($3,000 Requirement) | $100 – $500 |
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NEW JERSEY PLUMBERS LICENSE DISPLAY REQUIREMENTS
Under N.J.A.C. 13:32-3.1, all Master Plumbers must display their license information in specific locations:
- If subcontracting more than one-third of work: The advertisement must state: “A substantial part of the work which we undertake may be performed by independent licensed plumbing subcontractors.”
- Commercial vehicles: The plumber’s name and license number must be printed on both sides in at least one-inch-high lettering.
- Business correspondence, invoices, and advertisements: Must include the plumber’s name, license number, and business address.
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Frequently Asked Questions
The following are common questions about Plumbers Insurance in New Jersey.
Yes, New Jersey requires all licensed plumbers and plumbing contractors to have general liability insurance with a minimum coverage of $500,000 per occurrence. Workers' compensation insurance is also mandatory if you have employees.
The cost of New Jersey plumbers insurance varies based on coverage limits, business size, and claims history. General liability insurance typically costs between $700 and $2,000 per year, while workers’ compensation ranges from $3,500 to $8,000 annually.
New Jersey plumbers must have: $500,000 general liability insurance, workers’ compensation insurance for employees, a $3,000 surety bond for master plumbers, and commercial auto insurance if using company vehicles.
A $3,000 surety bond is required for master plumbers to ensure compliance with New Jersey plumbing laws. It provides financial protection for clients if a plumber fails to complete a job properly.
No, sole proprietors without employees are not required to carry workers’ compensation insurance, but it’s recommended for self-protection in case of injury.
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