New York Surety Bond
Absolute Surety is a leading provider of New York State bonds. Apply for a NY Surety Bond today! We offer a full range of bonds, including Surety Bonds, Fidelity Bonds, garage liability and more. Even if you do not see the bond you are looking for, we likely have it. Contact us for a full list if you don't see what you need.
What Surety Bonds Are Necessary In New York?
The three broad categories of mandatory surety bonds in New York state are license or permit bonds, contractor bonds, and court bonds.
New York License & Permit Bonds
If you plan to or already operate a business in New York, you may be required to purchase a surety bond in order to receive or renew the necessary business license—hence the name “license and permit bond.”
Several different state agencies require license applicants to purchase a license and permit bond. These include:
- The New York Insurance Department
- NYS Department of Law
- NYS Department of Taxation and Finance
- NY Secretary of State
- NY Division of Motor Vehicles
- NY Superintendent of Banks
Contractor License Bonds
There is no statewide requirement for licensing of contractors except for asbestos handling contractors and crane operators. However, a permit and license bond may be required at the city or county level for general contractors and subcontractors. For example, Putnam County requires licensing and bonding of electrical contractors, and both Putnam County and Suffolk County require licensing and bonding of home improvement contractors.
License and permit bonds guarantee that businesses will abide by all applicable rules and regulations, thus protecting consumers from financial loss due to the actions of a bonded company.
New York Construction Bonds
Construction bonds may be required at the city or county level for contractors bidding or working on public construction projects in certain jurisdictions.
New York courts may require some plaintiffs, defendants, and fiduciaries to obtain a bond. This is common for people appealing a court decision or serving in a fiduciary capacity—for example as an estate executor, guardian, conservator, or bankruptcy trustee. The purpose of these surety bonds is to guarantee payment of court fees and financial damages awarded to an opposing party or to ensure that fiduciaries fulfill their responsibility in accordance with the law.
How Much Will A Surety Bond Cost?
The surety company will assess a bond applicant’s credit and assign an appropriate premium rate. While the rate for people with good credit typically ranges from 1% to 3%, people with bad credit will be given a higher rate of up to 15%. The total amount of the bond is multiplied by this premium rate to determine the cost of the bond.
Our online application system makes it easy to apply for wide range of New York surety bonds. We offer quick turnarounds, often 24 hours or less.