New Jersey Health Club Bond Overview
- Purpose: To protect health club members from financial loss if the club closes
- Who Needs It: Health clubs who offer memberships longer than 3 months in New Jersey
- Regulating Body: The Division of Consumer Affairs — Regulated Business Section
- Bond Amount: $25,000 to $50,000 based on club’s annual gross income
- Minimum Price: 1% of coverage amount
What Is a New Jersey Health Club Bond?
A New Jersey health club bond ensures health clubs conduct business according to New Jersey Code. The bond also protects paying health club members from financial harm if the club closes and is insolvent.
Who Needs a Health Club Bond?
The New Jersey Division of Consumer Affairs (DCA) requires health clubs who sell memberships longer than three months to have a surety bond or letter of credit.
New Jersey defines a health club as any establishment that devotes 40% of its facility to physical fitness and well-being where members exercise at will.
*Note: A health club does not include entities that focus on a single, specific type of fitness or particular physical skill.
Bond Coverage Requirements
The coverage you need depends on the health club’s annual gross income. Your health club bond must be equal to 10% of the gross income from the last fiscal year.
For example, if your health club makes a gross income of $300,000, you’ll need a $30,000 surety bond.
We offer bond coverage between $25,000 and $50,000. Each year, adjust your bond amount if gross income changes.
How Much Do Health Club Bonds Cost in New Jersey?
New Jersey health club bond premiums are credit based — submit an application to get an exact rate! All coverage amounts have a starting premium of 1%.
For example, if you need $25,000 coverage, you could qualify for a $250 premium with great credit. Apply for a free quote today!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a New Jersey Health Club Bond Work?
When you get a New Jersey health club bond, you enter a legal agreement with three parties.
| Bond Party | Description |
|---|---|
| 1. Principal | You, the health club owner |
| 2. Obligee | The New Jersey Division of Consumer Affairs |
| 3. Surety | The issuing surety provider |
If your health club closes, or you don’t follow industry regulations, harmed members can file a claim on the bond. The surety will pay for valid claims and you must reimburse the surety later on.
How Do I Get a Health Club Bond in New Jersey?
Getting a New Jersey health club bond is simple, just follow these four steps:
- Determine the coverage amount you need
- Apply for a free quote
- Pay the premium
- File your bond with the DCA
How Fast Can I Get My Bond?
New Jersey health clubs bonds require underwriting. Once your credit score has been evaluated, you’ll get a quote in just one business day!
After paying the premium, you’ll find your bond form in your email inbox within minutes. Make sure to check your spam folder if you can’t find your document right away.
How Do I File My Bond?
File your bond by mailing it to the following address:
Regulated Businesses Section
P.O. Box 45028
Newark, New Jersey 07101
Can I Get Bonded With Bad Credit?
We approve 99% of applicants, however, if you’re worried about low credit, read about our Bad Credit Options. The best way to know if you qualify is by applying for a free, no-obligation quote.
How Do I Renew My Health Club Bond?
New Jersey health club bonds expire annually. You’ll need to renew your bond to maintain license requirements.
To renew your bond, just follow the instructions provided in the renewal reminders. We’ll start sending email and text reminders 90 days before the expiration date.
How Do I Update My Bond Information?
Update information on your bond form by contacting our Customer Care team:
- [email protected]
- 1(800)-308-4358
Small fixes can be made through a bond rider, while larger changes may require a new bond form to be issued.
How to Start a Health Club or Gym in New Jersey
Health clubs, spas, fitness clubs and gyms need to register through the Regulated Business Unit (RBU) portal. Complete the following basic steps to start your health club business:
- Write a business plan and select structure
- Determine your NAICS Code
- Login or create an RBU account
- Register your business in the portal
- Apply for a license
- Get an insurance policy and/or surety bond, if applicable
- Pay applicable fees
Each health club type may have additional or specific approvals and inspection requirements. Be sure to check with the DCA for health club registration and regulation information.
