Surety Bond Professionals is a family-owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all of your New York liquor license bond needs.
What Are They?
As their name suggests, New York liquor license bonds are required in order to get and keep a liquor license from the state’s Division of Alcoholic Beverage Controls. They serve two important purposes:
- To motivate business owners engaged in the alcoholic beverage industry to do so in compliance with the laws of the State of New York
- To ensure payment of any fines, penalties, or fees incurred in the course of doing business
The required bond amount and the cost of a New York liquor license bond vary depending on the type of liquor license.
Who Needs Them?
New York issues liquor licenses in four categories: manufacturer, retailer, wholesaler, or importer. The bonding requirements mandated by the Division of Alcoholic Beverage Controls differ for each. For example, while all retailers must purchase a New York liquor license bond, the bonding requirement applies only to certain wholesalers, not all of them.
Speak with a Surety Bond Professionals agent today to discuss your bonding needs.
How Do They Work?
Ideally, every liquor license holder will operate in compliance with the law and avoid violations (for example, selling alcohol to minors) that could result in monetary penalties and claims against the individual’s New York liquor license bond.
But when that is not the case, the Division of Alcoholic Beverage Controls can file a claim against the offender’s liquor license bond to collect unpaid fines, charges, or other money owed to the state as a result of the violation. If the surety company is unable to negotiate a settlement, the claim will be paid on behalf of the bonded licensee.
A liquor license bond essentially serves as a line of credit available to draw upon as needed to pay claims. In paying a claim on behalf of a licensee, the surety company is advancing credit to the licensee. The licensee is legally obligated by the terms of the surety bond contract to repay that amount, which often can be done in installments.
What Do They Cost?
A retailer’s premium cost for the required $1,000 bond amount is a flat $50 for a one-year bond, and the same applies to a hard cider wholesaler.
For beer and wine wholesalers, the required bond amount goes up to $10,000, and for liquor wholesalers, it is $20,000. For all of these license types, the annual bond premium is calculated on a case-by-case basis as a small percentage of the required bond amount. The primary considerations in determining what the percentage will be are the licensee’s personal credit score and the financial stability of the business. With good credit, that could mean a premium rate in the range of 1% to 3%.
Get a Quote
Request a convenient online quote today or call us to discuss the New York liquor license bond you need.