New York Surety Bonds

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Surety Bond Professionals is a family-owned and operated bonding agency 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.

Continue reading below to learn more about common New York bonding requirements, or use our online form to request a quote now.

Required Surety Bonds in New York

Typical New York bonds include (click on any for more info):

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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)

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Our experienced professionals will gladly answer any questions you may have about New York surety bonds to help you get the bonds you need. Request a quote today!

Frequently Asked Questions

There are three parties to every surety bond agreement, which is a legally binding contract:

  • The “obligee” is the state or local agency requiring the surety bond.
  • The “principal” is the party required to purchase the bond.
  • The “surety” is the company underwriting and issuing the bond.
  • The obligee sets the required amount of the bond, which is the maximum amount that will be paid out on a claim. The obligee also spells out the conduct required of the principal in order to avoid claims against the surety bond.

Any party who suffers a financial loss because the principal has violated the terms of the bond has the right to file a claim against the bond. The principal is solely responsible for paying all valid claims.

However, the surety will often pay a claim and wait to be reimbursed by the principal. This ensures timely settlement of the claim and gives the principal some time to gather the necessary funds.

What the principal in a bond agreement actually pays for a surety bond is a small percentage of the required bond amount established by the obligee. That percentage, known as the premium rate, is determined by the surety company based on the applicant’s credit score and other indicators of the likelihood of claims being filed against the bond. Those with good credit can expect a rate of 1-3%. Those with poorer credit may pay a higher premium.
No claim against a bond will be paid until the surety company has investigated and determined that it is valid. After making payment to a claimant, the surety company will demand reimbursement from the principal.