New York Surety Bonds
Surety Bond Professionals is a family-owned and operated bonding company dedicated to meeting the bonding needs of clients in the Northeast and nationwide. With more than 30 years of experience, we work with over 25 surety markets to provide our clients with a wide selection of surety products at competitive rates. We are well-equipped to assist you with all of your New York surety bond needs.
Learn more about surety requirements in New York below, or fill out our online form now to request a quote.
Required Surety Bonds In New York
In New York, there are three main categories of surety bonds: construction and contractor bonds, license and permit bonds, and court bonds. The vast majority of surety bonds issued in the state fall into one of these “buckets.”
New York Construction Bonds
Construction surety bonds have been our specialty for more than three decades. Our professional surety agents have the knowledge and experience to answer any questions related to surety bonds, and are ready to get you bonded at a competitive price.
Unless you operate a crane or handle asbestos, you won’t need to obtain a license or a contractor license bond at the state level in New York. But there are other construction bonding requirements at both the state and local levels. For instance, state and local public works projects in New York typically carry specific requirements for bid bonds, performance bonds, and payment bonds:
- A bid bond is a contractor’s pledge to accept the project if chosen as the winning bidder.
- A performance bond is a contractor’s guaranty to fulfill all contractual obligations in accordance with the law and with prevailing ethical standards.
- A payment bond ensures that a contractor’s suppliers, subcontractors, and labor will be paid as specified in the contract.
Our agents can help you understand any other bonding requirements that may apply to your situation as well.
New York License & Permit Bonds
Many businesses must be licensed before they can operate legally in New York. That typically entails purchasing a license bond. These bonds guarantee that the licensee will conduct business in a lawful and ethical manner. They provide financial protection for the state and for consumers. The New York Department of State’s Division of Licensing Services (DLS) currently issues licenses for 35 occupations, including:
- Appearance enhancement, such as cosmetology, esthetics, nails, hair styling, waxing
- Real estate brokers, salespeople, and appraisers
- Security guards, armored car services, private investigators, and other security-related occupations—and more
In some municipalities there are licensing and bonding requirements for plumbers, home improvement contractors, and other construction-related businesses. For example, home improvement contractors must be licensed and bonded to work in the cities of New York and Buffalo and in Suffolk, Nassau, Westchester, Putnam, and Rockland counties.
New York Court Bonds
There are two main types of court bonds (also known as judicial bonds) in New York:
- Appeal bonds, such as plaintiff bonds or defendant bonds, that ensure the payment of any damages, court costs, or legal fees that result from losing an appeal or other ruling
- Bonds that guarantee the compliance of those with court-ordered fiduciary responsibilities with applicable laws and the rules of the court (for example, executors, guardians, conservators and trustees)
How Much Do Bonds Cost?
The two key factors that go into pricing a surety bond are the total amount of the bond and the applicant’s credit score. Other aspects of an applicant’s financial situation may also be considered. Based on an applicant’s creditworthiness, the surety company will assign an appropriate premium rate. This is the percentage of the bond amount that the applicant will pay as the annual bond premium.
Bond applicants with good credit typically pay a premium rate of between 1% and 3%. Those with poor credit will pay from 4% to as much as 10%. At Surety Bond Professionals, we work with an extensive network of providers, which enables us to offer competitive rates on all of the bonds we issue.
What Happens When A Claim Is Filed?
Surety companies investigate all claims to ensure that they are valid before making payment to claimants. Though the surety company will pay all valid claims, the individual who purchased the bond must then repay the full amount to the surety company.
You can rely on our experts to answer any questions about New York surety bonds and help you purchase the specific bond you need. Request a quote today!