Getting a New York surety bond guarantees that work will be completed as per the contract terms. It also guarantees payment for services and materials supplied. Having such an assurance protects your business and provides peace of mind to everyone involved. Here’s a look at surety bonds that may be required for certain businesses or contractors in New York.
Types of New York State Bonds That May be Mandatory
The three main types of surety bonds that you may need to secure business in the state are:
- License and permit bonds: Many companies, including car dealers and contractors, require these bonds to operate legally in New York.
- Contractor bonds: To get any public construction work, the contracting agency will require you to have a contractor bond.
- Court bonds: These guarantees serve various litigation purposes.
Having the right surety bond in place gives you the peace of mind to do business, knowing that potential claims against you are fully covered. Specific New York bond types and their respective obligee include:
- Door to door vendor bond
- Utility payment bond required by the Public Service Enterprise Group Long Island (PSEGL) in Melville
- Adjusters bond required by the New York Insurance Department – Licensing Bureau
- Ambulette bond required by the Office of the Medicaid Inspector General
- Fundraising bond (renewable annually) is by the New York State Department of Law
License and Permit Bonds in NY
These bonds are required to get a license or permit for certain types of works and businesses, such as:
- The street permit bond is required to close streets or sidewalks in New York City for repairs or other public work.
- The Auto dealer bond is required by the NY State Department of Motor Vehicles.
Construction Bonds
Municipal or city public agencies may require contractors to obtain a bid or performance bond before awarding them a public construction contract.
Court Bonds
You may need a court bond in scenarios such as:
- Appealing a court ruling
- Applying to be the legal guardian of a minor
- Serving as an estate’s fiduciary
What Is the Cost of a NY Surety Bond?
In New York, surety bond costs can vary between 1% and 15% of the total bond amount you’re asked to pay.
How Bad Credit Can Impact Your Bonding Eligibility
You may get a license or permit bond with a poor credit score. However, contract bonds are harder to come by with severe credit problems.
Key Facts about Surety Bonds
- You can contest false claims with the help of our surety bond issuer
- You can lower your surety bond costs by comparing rates
- You can apply for a surety bond online
A surety bond is a business requirement for different types of professions or companies in New York. If you need help finding the right surety bonds near you, contact our experts at Northeastern Group, LTD today. We have experience in providing bonding and insurance solutions for different types of businesses.
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