New York Surety Bonds

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.

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.