New Jersey Elevator, Escalator and Moving Walkway Mechanics License Bond: A Comprehensive Guide

February 3, 2021

This guide provides information for insurance agents to help contractors on New Jersey Elevator, Escalator, and Moving Walkway Mechanics License bonds

At a Glance:

• Average Cost: $50 for a two year term
• Bond Amount: $10,000
• Who Needs It: All individuals and businesses seeking to obtain an elevator mechanic’s license in the State of New Jersey
• Purpose: To ensure the public will receive compensation for any damages should the contractor fail to comply with contractor licensing law
• Who Regulates Elevator, Escalator and Moving Walkway Mechanics in New Jersey: The New Jersey Elevator, Escalator, and Moving Walkway Mechanics Licensing Board

Background

New Jersey Administrative Code 13:44M-2.1 requires elevator, escalator and moving walkway mechanics operating in the state to obtain a license with the Elevator, Escalator, and Moving Walkway Mechanics Licensing Board. The New Jersey legislature enacted the licensing laws and regulations to ensure that contractors engage in ethical business practices. In order to provide financial security for the enforcement of the licensing law, contractors must purchase and maintain a $10,000 elevator, escalator, and moving walkway mechanics license surety bond to be eligible for licensure.

What is the Purpose of the New Jersey Elevator, Escalator, and Mechanical Walkway Mechanics License Bond?

New Jersey requires contractors to purchase the Elevator, Escalator and Moving Walkway  Bond as part of the application process to obtain an elevator mechanic’s license. The bond ensures that the public will receive compensation for financial harm if the contractor fails to comply with the licensing regulations. In short, the bond is a type of insurance that protects the public if the contractor breaks licensing laws.

How Can an Insurance Agent Obtain a New Jersey Elevator, Escalator, and Mechanical Walkway Mechanics License Surety Bond? 

BondExchange makes obtaining a New Jersey Elevator, Escalator, and Mechanical Walkway Mechanics License Bond easy. Simply login to your account and use our keyword search to find the “contractor” bond in our database. Don’t have a login? Enroll now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email or chat from 7:30 AM to 7:00 PM EST to assist you.

At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.

Is a Credit Check Required for the New Jersey Elevator, Escalator, and Mechanical Walkway Mechanics License Bond?

No, a credit check is not required for the New Jersey Elevator, Escalator, and Mechanical Walkway Mechanics License Bond. Because this bond is considered relatively low-risk, the same low rate is offered to all contractors in New Jersey.

How Much Does the New Jersey Elevator, Escalator, and Mechanical Walkway Mechanics License Surety Bond Cost?

The New Jersey Elevator, Escalator, and Mechanical Walkway Mechanics License Bond costs just $50 for a two year term

How Does New Jersey Define “Elevator Mechanic”?

To Paraphrase New Jersey Administrative Code 13:44M-1.2, an elevator mechanic is any individual capable of installing, altering or repairing any elevator, escalator, or moving walkway as an independent business.

How Do Elevator Mechanics Apply for a License in New Jersey?

Contractors in New Jersey must navigate several steps to secure their elevator mechanic’s license. Below are the general guidelines, but contractors should refer to the licensing statutes for details on the process.

License Period – The New Jersey Elevator Mechanic License expires on September 30 of every even numbered year (2022, 2024 etc) and must be renewed before the expiration date

Step 1 – Meet the Experience Requirements

Applicants for the elevator mechanic’s license must have the necessary experience as required by the Elevator, Escalator, and Moving Walkway Mechanics Licensing Board. Contractors must meet the following criteria to obtain a New Jersey elevator mechanic’s license:

• • Is 21 years of age or older
  • Has been employed in the elevator, escalator, or moving walkway trade for at least three years
  • Has passed either the NAEC CET Certification exam or the NEIEP exam

Step 2 – Purchase a Surety Bond

Elevator mechanics must purchase and maintain a $10,000 elevator, escalator and moving walkway mechanics license surety bond

Step 3 – Complete the Application

All regulatory elevator mechanic’s license applications can be completed online through the New Jersey Department of Consumer Affairs’s Licensing Portal. Contractors will need to provide verification of their work experience including detailed accounts of all work performed. All work experience must be verified by the contractor’s employer/supervisor.

Step 4 – Pay Fees

Applicants for the elevator mechanic’s license must submit a $100 application fee with their license application

How Does a New Jersey Elevator Mechanic Renew Their License?

Elevator mechanics can renew their license online through the New Jersey Department of Consumer Affairs’ Licensing Portal. The New Jersey Elevator Mechanic License expires on September 30 of every even numbered year (2022, 2024 etc) and must be renewed before the expiration date

What Are the Insurance Requirements for the New Jersey Elevator Mechanic’s License?

The State of New Jersey does not require elevator mechanics to purchase any form of liability insurance. Contractors will need to purchase and maintain a $10,000 elevator, escalator, and moving walkway mechanics license surety bond.

How Do New Jersey Elevator Mechanics File Their Bond?

Contractors can file their bond electronically through the New Jersey Department of Consumer Affairs’s Licensing Portal. The bond requires signatures from both the surety company that issues the bond and the contractor. The surety company should include the following information on the bond form:

• Legal name and location of the entity/individual(s) buying the bond
• Surety company’s name
• Date the bond is sealed
• Bond term
• Witness signature

What Can Contractors Do to Avoid Claims Against the New Jersey Elevator, Escalator and Moving Walkway Mechanics License Bond?

To avoid claims on the Elevator, Escalator and Moving Walkway Mechanics License Bond, contractors must follow all license regulations in the state, including some of the most important issues below that tend to cause claims:

• Honor all contractual obligations when completing a project
• Do not engage in any acts of fraud

What Other Insurance Products Can Agents Offer Elevator Mechanics in New Jersey?

New Jersey does not require elevator mechanics to obtain any form of liability insurance. However, many reputable contractors will seek to purchase this insurance anyway. Bonds are our only business at BondExchange, so we do not issue liability insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.

How Can Insurance Agents Prospect for New Jersey Elevator Mechanic Customers?

New Jersey conveniently provides a public database to search for active elevator mechanics in the state. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.

What other Contractor License Bonds are Required in New Jersey?

Contractors in New Jersey will need to obtain specific bonds correlating with their license type. Below are all the different contractor licensing bonds required by the State of New Jersey:

• Electrical Contractor: $1,000 bond limit
• HVACR Contractor: $3,000 bond limit
• Master Plumber: $3,000 bond limit