New York
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The purpose of a New York surety bond is to ensure an obligee against any damages that they might incur as a result of the principal not fulfilling the terms of the contract.
If the involved principal does not fulfill the contract as agreed upon, the obligee can file a claim with the surety to seek compensation for damages. If this happens, the amount that the surety has to pay out to the obligee will need to be repaid by the principal. The principal would have to repay the entire bond amount, plus all legal charges that are incurred during the claims process.
Bonds act as a line of credit that is extended to a principal when issuing a bond. This is because the surety is the one who will be responsible for paying the obligee in the event of a claim that is filed. The principal will therefore not have to deal with any immediate out-of-pocket expenses when a claim is filed. They will, however, have to repay the surety according to the terms that have been agreed upon by the two parties.
Common New York Surety Bonds
The purpose of a New York surety bond is to ensure an obligee against any damages that they might incur as a result of the principal not fulfilling the terms of the contract.
If the involved principal does not fulfill the contract as agreed upon, the obligee can file a claim with the surety to seek compensation for damages. If this happens, the amount that the surety has to pay out to the obligee will need to be repaid by the principal. The principal would have to repay the entire bond amount, plus all legal charges that are incurred during the claims process.
Bonds act as a line of credit that is extended to a principal when issuing a bond. This is because the surety is the one who will be responsible for paying the obligee in the event of a claim that is filed. The principal will therefore not have to deal with any immediate out-of-pocket expenses when a claim is filed. They will, however, have to repay the surety according to the terms that have been agreed upon by the two parties.
Common New York Surety Bonds
New York Contractor License Bond
Auto Dealer Bond
Freight Broker (BMC-84) Bond
Notary Bond
Mortgage Bond
DMEPOS Bond
How do I purchase a New York surety bond?
NFP, the nation's largest and most reliable surety company, is authorized to issue many different types of surety bonds in New York. We can provide the best rates for your bond, as well as the fastest issuance, to get your business off and running.
Our short online application makes it easy. Click below to start the application process today.
New York Surety Bond FAQs
New York requires surety bonds across many industries and professions. Common examples include auto dealers, private investigators, insurance brokers, home improvement contractors (especially in New York City) and notaries. Some bonds are required by state agencies, while others are mandated at the city or county level.
The cost of a surety bond in New York typically ranges from 1 to 10% of the total bond amount. For example, a $10,000 notary bond might cost as little as $50, while a $100,000 contractors bond could range from $500 to $2,000 depending on your credit, financials, and the bond type.
Yes, if you’re a licensed home improvement contractor operating in NYC, you must post a $20,000 contractors surety bond. This bond helps protect consumers from fraud, defective work, or failure to comply with city regulations. It must be kept active to maintain your license.
Yes, even if you have bad credit, you can still qualify for a surety bond in New York. The premium may be higher, typically between 5 and 15%, but many bond companies offer options for applicants with less-than-perfect credit, especially for standard license and permit bonds.
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