New York surety bonds guarantee the legal compliance of bonded parties to specified contracts, agreements or industry standards. For many individuals and companies in New York, posting a surety bond is a prerequisite to conducting business and other professional activities in the state.
In New York, as in the rest of the US, surety bonds are used to protect the public, government bodies and paying customers from unscrupulous or illegal business practices. Numerous state, local and city bodies in New York oblige companies, individuals and organizations to get bonded before they can work in a professional capacity. The body requiring the bond is known as the ‘obligee’.
Surety bonds in New York City, and New York State, function as a three-party contractual agreement. As well as the obligee (the body requiring the bond), you have the principal and the surety.
The principal is the individual, company or organization that needs to get bonded in order to carry out a specific role. The surety is the party that provides the bond and financially backs the principal.
If the principal fails to fulfill their professional obligations, the obligee can recover their costs from the surety. The surety is then reimbursed by the principal. In effect. A surety bond is a guarantee to the obligee that they won’t be left out of pocket if something goes wrong.
Most Popular Surety Bonds in New York
If you want to work as a motor vehicle dealer in New York state, you’ll need to get an auto dealer bond of $25,000 or $100,000 in order to get your professional license. Franchised dealers have to post a $50,000 motor vehicle dealer bond. The licensing authority is the state Department of Motor Vehicles.
Debt collection agencies in New York City have to present a $5,000 collection agency bond to the City of New York authorities. Debt collection agencies operating in Buffalo need to provide their bond to the city Office of Licenses.
Immigration consultants in New York State are required to provide a $50,000 bond to the New York State Office for New Americans.
New York state private investigators are required to obtain a $10,000 private investigator bond. They need to present it to the Department of State before they can receive their professional license.
If you’re planning to work as a mortgage broker in the state of New York, you’ll need a $10,000 mortgage broker bond. This bond will need to be presented to the Department of Financial Services.
If you want to operate as a process server in NYC, you’ll have to get a $10,000 surety bond. The requirement is set by the City of New York.
In order for money transmitters to work in New York, they need to meet the state’s surety bond requirements. This involves posting a $500,000 money transmitter bond to The Department of Financial Institutions.
The Department of State (DoS) requires all auto brokers in New York to provide a $100,000 surety bond.
Determining Which New York Surety Bond You Need
With so many different surety bonds available, it can be difficult to work out the exact bond requirements for your industry. Getting the correct bond type is essential in order to get your license, secure your project or take the next step in your court proceedings, so it’s important to get the bonding process right.
The best way to find out which bond you need is to talk to the obligee. This is the entity that has asked you to get a bond and is probably a government or state organization or licensing body. The obligee should be able to connect you with the correct bond form and tell you the required bond amount. Once you’ve received this information from the obligee, you can take the next step in the bonding process.
If you’re still unsure of your bond needs, talk to one of our expert members of staff to find out more.
What Are The Types Of New York Surety Bonds That You May Need?
Most surety bonds required in NYC fall into three main categories. These are:
- Court bonds
- Contract bonds (also known as construction bonds or performance bonds)
- License bonds (also known as a permit bond)
Court bonds are sometimes required by courts in the state of New York. The two most typical situations when you might need a court bond are when acting as a fiduciary, or when appealing the result of a court case. These judiciary bonds are used to protect plaintiffs and dependents (and occasionally defendants) from any losses incurred as the result of a court ruling.
Contract bonds are most commonly required in the construction industry and are needed on a project-by-project basis. A contract bond ensures that the construction company will fulfill the work to the stated terms of the contract. If the construction company fails to do so, the surety will step in and reimburse the obligee.
Companies that want to bid on construction projects in the state of New York often need to post a contract bond. This is especially common in public sector projects. Home improvement contractors and subcontractors may also be required to obtain a contractor license bond.
License and Permit bonds are bonds that are required by state and professional bodies in order for companies or individuals to obtain a professional license. Examples of professions that require a license bond include:
- Professional fundraiser
- Car dealer
- Mortgage loan originator
- Financial services provider
- Insurance adjuster
- Freight broker
- Private investigator
You can consult the full list of bonds required in New York in the list at the end of this page.
Eligibility To Obtain a New York Surety Bond
In some cases, you may need to hold professional qualifications in order to be eligible for a specific surety bond. You’ll also need to operate your business or carry out your professional services in the state of New York.
How Do I Apply For a Bond?
The surety bond application process is quick and easy. To put your mind at ease, and ensure you get the bond that’s right for your needs, we’ll provide you with a free quote and a 100% money-back guarantee.
Lance Surety Bonds offers all types of bonds through a network of A-rated and Treasury Listed surety bond companies. Our agency is able to provide a variety of exclusive bond programs to New York applicants. We’ll help you get bonded fast and at an excellent rate.
Our agents operate out of the northeast, and so are very familiar with the different NY bond requirements. This will ensure you get the right surety bond for your needs.
Find out more by taking a look at our How to Get Bonded page.
How Much Does a New York Surety Bond Cost?
The surety bond quote you receive will be a percentage of the bond amount you’re applying for. The amount you pay is called a bond premium and is usually between 1% and 10% of the bond amount.
There are a number of factors that can impact your surety bond cost. These include your:
- Credit score
- Business financials
- Assets and liquidity
- Professional experience
- Surety assets
Surety bond providers will look at these different elements and decide how risky they think your bond is. If they consider your bond high risk, it means that they believe there’s a significant chance they’ll have to pay out on the bond. If they think it’s low risk, it means they believe a claim is unlikely.
The lower the risk and the more stable your business profile, the lower your bond premium will be.
If you’d like to know more about the cost of surety bonds, our surety bond cost page offers a detailed explanation of how bond pricing is formulated.
Can I Get Bonded With Bad Credit?
If you have bad credit, it can be more difficult to get bonded. We run a Bad Credit Surety Bonds program to assist applicants with issues such as low credit scores, tax liens, bankruptcies and civil judgements.
Except for contract bonds, most surety bonds can be obtained even with problematic finances. However, in order to compensate for the higher bonding risk, those with bad credit are required to pay slightly higher bond prices. Bond premiums for customers with bad credit are generally in the range of 5%-15%.
Find Your New York Surety Bond
Lance Surety Bonds are experts in New York surety bond requirements. From contract bonds for construction companies to license bonds for professionals, we’ll use our extensive network of A-rated, Treasury listed surety companies to find you the best rate for your bond and help you to get bonded fast.
Find Your New York Surety Bond
|Freight Broker Bond (BMC-84)||N/A||FMCSA||Apply Now|
|General license & permit bond (not listed)||N/A||N/A||Apply Now|
|Market Agencies/Dealers Bond||Farm Products Dealer Bond||Dept of Agriculture and markets||Apply Now|
|Contractor License (No P&P Language) Bond||County of Putnam Electrical Contractor License Bon||County of Putnam||Apply Now|
|Contractor License Performance & Payment (Local) Bond||Performance Bond||City of Niagara Falls||Apply Now|
|Contractor License Performance & Payment (Local) Bond||More Than ONe Location-Building Operations Permits||City of New York||Apply Now|
|Excess Weight, Other Highway & Street Permit Bond||Two to Fifty Locations Liability Permit Bond||City of New York/Commissioner of Transportation||Apply Now|
|Excess Weight, Other Highway & Street Permit Bond||Oversize and or Overweight Equipment Hauling Permi||Department of Transportation, State of New York||Apply Now|
|Collection Agency Bond||Collection Agency Bond(City of Buffalo, NY)||Office of Licenses||Apply Now|
|Collection Agency Bond||Collection Agency Bond (New York City)||NYC Department of Consumer Affairs||Apply Now|
|Professional Fund Raisers Bond||Annual Bond (for Professional Fund Raisers)||New York State Department of Law||Apply Now|
|Insurance Adjusters Bond||Adjusters||NY Insurance Department - Licensing Bureau||Apply Now|
|Mortgage Broker (1st & 2nd Mortgages) Bond||Originating Entity||Superintendent of Banks||Apply Now|
|Mortgage Broker (1st & 2nd Mortgages) Bond||Registered Mortgage Brokers||Superintendent of Banks||Apply Now|
|Mortgage Broker (1st & 2nd Mortgages) Bond||FHA Mortgage Loan Correspondent||Superintendent of Banks||Apply Now|
|Mortgage Broker (1st & 2nd Mortgages) Bond||Mortgage Loan Originator (Individual)||New York Banking Department||Apply Now|
|Mortgage Lender/Banker (1st & 2nd Mort.) Bond||Licensed Mortgage Banker Bond||NY Superintendent of Banks||Apply Now|
|Mortgage Lender/Banker (1st & 2nd Mort.) Bond||REGISTERED MORTGAGE LOAN SERVICERS||Superintendent of Banks of the State of New York||Apply Now|
|Auto & Mobile Home Dealers (New & Used) Bond||Motor Vehicle Dealer||Department of Motor Vehicles||Apply Now|
|Auto & Mobile Home Dealers (New & Used) Bond||Automobile Brokers Bond||Department of State||Apply Now|
|Auto & Mobile Home Dealers (New & Used) Bond||Auto & Mobile Home Dealers (New & Used) Bond||Obligee info for this request was wrong||Apply Now|
|Auto & Mobile Home Dealers (Used Only, No New) Bond||Motor Vehicle Dealer||Department of Motor Vehicles||Apply Now|
|Motor Vehicle (Non-Dealer, Not Listed) Bond||Executive Law Article 21-B||New York State Deaprtment of State||Apply Now|
|Motor Vehicle (Non-Dealer, Not Listed) Bond||Second Hand Vehicle Sales||Town of Hempstead||Apply Now|
|Sport Permits Bond||Sport Permits Bond||State Athletic Commission||Apply Now|
|Sport Permits Bond||Boxing, Sparring, and Wrestling Match Permit Bond||State Athletic Commission||Apply Now|
|Health Spas/Health Clubs Bond||Health Club||Division of Licensing Services||Apply Now|
|Detectives Bond||Private Investigator Bond||Secretary of State||Apply Now|
|Detectives Bond||Watch, Guard or Patrol Aency Bond||Secretary of State||Apply Now|
|Employment Agencies Bond||Employment Agency Bond||The People of the State of New York||Apply Now|
|Nursing Homes Bond||State of New York Nursing Homes||NYS DEPARTMENT OF HEALTH||Apply Now|
|Professional Licenses (All Other) Bond||Immigration Assistance Service Providers||Department of Consumer Affairs||Apply Now|
|Professional Licenses (All Other) Bond||Oversize Hauling Permit||NY Dept of Transportation||Apply Now|
|Professional Licenses (All Other) Bond||Process Server Individual||Department of Consumer Affairs||Apply Now|
|Professional Licenses (All Other) Bond||Ticker Reseller||Secretary of State||Apply Now|
|Professional Licenses (All Other) Bond||For Hire Vehicle||City of New York Taxi & Limousine Commission||Apply Now|
|Professional Licenses (All Other) Bond||Ambulette Bond||Office of the Medicaid Inspector General||Apply Now|
|Professional Licenses (All Other) Bond||Second Hand Dealer||Department of Consumer Affairs||Apply Now|
|Professional Licenses (All Other) Bond||(City of New Rochelle) Door to Door Vendor Bond||City of Rochelle, NY||Apply Now|
|Professional Licenses (All Other) Bond||Solicitor Bond (Clarkstown, NY)||Town of Clarkstown||Apply Now|
|Professional Licenses (All Other) Bond||Appearance Enhancement Business Bond||Secretary of State||Apply Now|
|Professional Licenses (All Other) Bond||Process Serving Agency Bond||Department of Consumer Affairs||Apply Now|
|Professional Licenses (All Other) Bond||General Contractor Bond||Department of Consumer Affairs||Apply Now|
|Professional Licenses (All Other) Bond||Base Station Bond (Westchester County Taxi & Limo||Westchester County Taxi & Limo Commission||Apply Now|
|Professional Licenses (All Other) Bond||Taxi Base Station Bond (County of West Chester)||Westchester County||Apply Now|
|Alcohol (Manufacturers, Warehouses, Wholesalers) Bond||New York Alcoholic Beverage Control||State Liquor Authority||Apply Now|
|Alcohol (Retailers) Bond||Alcohol (Retailers) Bond||Apply Now|
|Fuel Tax (All Others, Sellers & Users) Bond||Bond of Distributor of Automotive Fuel||NY State Dept of Taxation and Finance||Apply Now|
|Other Public Warehouses (All) Bond||Storage Warehouse Bond (New York City)||City Of New York, Department Of Consumer Affairs||Apply Now|
|Games of Chance Bond||Games of Chance Bond||NYS Department of State||Apply Now|
|Turnpike/Bridge Toll Bond||Thruway Authority||New York State Thruway Authority||Apply Now|
|Utility Deposit Bond||Utility Deposit Bond||NIAGARA MOHAWK POWER CORP dba NATIONAL GRID||Apply Now|
|Utility Deposit Bond||Long Island Lighting Company Utility Deposit Bond||Long Island Power Authority||Apply Now|
|Utility Deposit Bond||(PSEGLI) Utility Payment Bond||Public Service Enterprise Group Long Island (PSEGL||Apply Now|
|Wages & Fringe Benefits Bond||Steamfitters' Industry Funds Construction Trades||Steamfitters Local 638||Apply Now|
|Wages & Fringe Benefits Bond||Welfare, Pension, Annuity Payment Bond||IBEW Local Union 363||Apply Now|
|Wages & Fringe Benefits Bond||IUEC Wage and Fringe Benefit Payment Bond||NY LOCAL 1 IUEC||Apply Now|
|Wages & Fringe Benefits Bond||Local Union #9 Wage & Welfare Bond||TRUSTEE OF THE DISTRICT COUNCIL NO. 9 OF NEW YORK||Apply Now|
|Fringe Benefits Only Bond||International Union of Painters||Trustess of the District Council No. 9 of New York||Apply Now|
|Fringe Benefits Only Bond||Fringe Benefits Only Bond||Sheet Metal Intl #28||Apply Now|
|Fringe Benefits Only Bond||Sheet Metal Workers International/Local Union #28||Sheet Metal Workers International/Local Union #28||Apply Now|
|Fringe Benefits Only Bond||Steamfitters' Industry Funds Construction Trades B||The Steamfitters' Industry Fund||Apply Now|
|Fringe Benefits Only Bond||Fringe Benefits Bond (Local #200)||Plumbers Local No. 200||Apply Now|
|Money Transmitter Bond||Money Transmitter Bond||Department of Financial Services||Apply Now|
|Telemarketing/Phone Solicitor Bond||Telemarketing Bond||Department of State, Division of Licensing||Apply Now|