What Is a New York Telemarketer Bond?
If you want to start a telemarketing business in the state of New York, you will need to obtain a registration from the Division of Licensing Services at the Department of State. One of the main requirements you have to meet as a part of the process is to post a telemarketing bond.
The aim of this registration prerequisite is to ensure an extra level of protection for the general public. The surety bond is a security instrument that can provide a reimbursement to harmed parties if you fail to abide by your legal obligations as a telemarketer.
Your New York surety bond works like the rest of bonds: it is a three-party contract. The telephone solicitation company that you want to start is the principal. The Department of State is the obligee that requires the bond. The surety is the bond provider that backs your business.
Questions about Telemarketing Bonds in New York
When is a telemarketer bond required?
If you want to run a telemarketing business in New York state, you have to get a bond and present it to the respective authority, the Department of State. The required bond amount is $25,000, which you have to present together with your registration application. You have to file it in the official bond form.
The bond should be signed by a notary to verify the three-party contract. The telemarketing bond guarantees you will abide by Article 26 of the New York state’s General Business Law, as well as any other applicable rules.
What is the bond cost for New York telemarketer bonds?
You need to post a $25,000 surety bond to get your New York telemarketer registration. The price you have to pay to get bonded is only a fraction of this bond amount. It is referred to as the bond premium. If your finances are in good shape, you can expect a rate between 1% and 3%.
|Surety bond name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|New York telemarketer bond||$25,000||$187.5-$$375||$250-$625||$625-$1,250||$1,250-$2,500|
The way your surety bond cost is set is by examining a list of financial factors about you and your business. Your personal credit score and business financials are key in this process. Other important criteria that your surety considers are cash on hand, as well as assets you can demonstrate. By assessing your financial profile, the level of bonding risk is determined. The smaller it is, the less you will pay for your bond.
Can I obtain a bond with bad credit?
Yes, even if you struggle with bad credit, you can get bonded with us. Lance Surety Bonds operates its Bad Credit Surety Bonds program for applicants with low credit scores, tax liens, bankruptcies, civil judgements, and similar issues.
The premiums you can expect are often between 5% to 10%. With the higher price, a part of the increased bonding risk is mitigated. We can find the right bonding option for you, whatever your credit score is. We work with a number of A-rated, T-listed surety companies, which allows us to shop around for you.
How can I get this bond?
Do you want to know more about the bonding process and its intricacies? Don’t miss our How to Get Bonded page, which can provide you with all the details you need.
Call us at (877) 514-5146 for any questions or help you might need during your application process. Our bonding specialists are here to help.
What is the process for bond claims against telemarketers?
As a telemarketer, you need to adhere to certain professional standards and laws. The bond guarantees your legal compliance, so in case you transgress from your obligations, a claim can be brought against your bond. You are liable to pay all costs that are incurred as a result of proven cases.
Parties that suffer damages due to your telemarketing company’s actions can get a reimbursement of up to $25,000, which is the penal sum of your bond. While your surety may cover the payments at first, you have to reimburse it fully. This makes bond claims a financial burden, which is best to be avoided.