Don’t see your New York surety bond? Complete a general application and we’ll track down what you need.
New York Surety Bond Guide
Surety1.com has been providing New York surety bonds since 2003 We provide surety bonds that are required to obtain professional licenses or contract work in the state.
What is a surety bond?
A surety bond is a three-party agreement between:
- The principal – the person or business that needs the bond.
- The obligee – the person or entity that requires the bond.
- The surety – The company that issues the bond.
A surety bond provides a financial guarantee that the principal will adhere to specific laws, regulations, or contract terms. It is a risk transfer mechanism that protects the obligee (the public or a government entity) from financial loss if the principal fails to perform their duties. It is not an insurance policy for the principal.
See our “What is a Surety Bond” Video.
See Our “How does the Surety Bond Process Work” Video
What types of surety bonds are required in New York?
There are many different types of surety bonds required in New York, including:
Construction bonds
- Bid bonds, – Are submitted with a contractor’s proposal that guarantees the bidder will sign the contract and furnish all other required bonds (like a performance bond) if they are awarded the job at their submitted price. It protects the project owner from financial loss if the winning contractor backs out of the contract.
- Performance bonds – A surety bond that guarantees a contractor (the principal) will complete a project according to the terms and specifications outlined in the contract. If the principal fails to perform, the bond protects the project owner (the obligee) by providing funds for completion or covering financial losses.
- Payment bonds –A type of surety bond that guarantees a contractor (the principal) will pay all subcontractors, laborers, and material suppliers for their work on a project. This bond protects these third parties from non-payment and prevents the project owner from being subject to liens on the property.
License and Permit Bonds
Are a type of surety bond required by state or local government agencies as a condition for granting certain business licenses or permits.
These bonds act as a financial guarantee that a business (the principal) will comply with all applicable laws, regulations, and ordinances governing their industry in the State of New York or municipalities within the state. Common License and Permit bonds include:
- Lost Stock Certificate Surety Bond – Is a bond required to replace a lost, stolen, or destroyed physical stock certificate, which protects the issuing company and its transfer agent from financial loss if the original certificate is later found and fraudulently presented.
- Money Transmitter Bond – Is a surety bond to financially guarantee that a business transferring funds will operate ethically, comply with all licensing laws, and protect consumer money against fraud or misuse.
- Mortgage Broker’s Bond – Is a surety bond required for licensing by the New York Department of Financial Services to provide financial protection to consumers against a broker’s fraudulent acts, misconduct, or failure to comply with state mortgage regulations.
- Motor Vehicle Dealer Bond – Is required by the New York State DMV as a condition of licensing, which financially guarantees that the dealer will comply with state laws and protect consumers from financial harm resulting from the dealer’s fraudulent or unethical business practices.
- Nail Salon Wage Bond – The Nail Salon Wage Bond is a mandatory surety bond for New York nail salons that employ two or more full-time nail specialists, serving as a financial guarantee to ensure that the salon pays its employees all earned wages, overtime, and fringe benefits.
Scroll up to see the complete list of New York Surety Bonds
Court bonds
- Appeal bonds, attachment bonds and other non- fiduciary bonds
Probate / Fiduciary bonds
Ensures that a court-appointed fiduciary (such as an executor, guardian, or trustee) will faithfully perform their duties. These bonds protect beneficiaries, creditors, and the court from financial losses due to misconduct or negligence. Common types include:
- Executor Bonds – Required when a will names an executor.
- Administrator Bonds – Needed when no will exists (intestate succession).
- Personal Representative Bonds – A general term covering both executors and administrators.
Why are surety bonds required?
Surety bonds are required primarily for consumer protection and to
ensure that a licensed business or contractor complies with state laws and industry regulations. If the principal fails to meet their legal or contractual duties and causes financial harm, the bond can be claimed against to compensate the injured party, essentially providing a form of financial recourse for the public.
In essence, a surety bond is a licensing requirement that serves as a pre-qualification tool for the government to vet a business’s credibility and financial stability before granting them a license or permit. By requiring a bond, the state shifts the financial risk of a business’s misconduct away from the taxpayer and onto a third-party surety company. This mechanism protects consumers from unethical practices, fraud, or failure to pay debts (like wages or taxes), thereby upholding integrity and trust within regulated industries like auto sales, contracting, or, in New York, even nail salons
How much does a surety bond cost?
The cost of a surety bond in New York varies depending on the type of bond, the amount of the bond, and your financial strength and creditworthiness. Generally speaking, the higher the amount of the bond and the riskier the business, the higher the premium will be. As a rule of thumb, most surety bonds will cost between 1% and 3% of the bond amount, with a minimum cost of $150.00 to $250.00
What if I just want to “be bonded”?
If your license or profession has no surety bond requirement attached to it but one still wants to “be bonded”, Surety1.com offers a Business Service Bond at a very affordable price.
Why Choose Surety1 for Your Bonding Needs?
- Experience: Surety1 has been in business since 2003, specializing in surety bonds nationwide, with specific experience in New York.
- Variety: We offer a wide range of New York surety bonds for various professions and industries.
- Competitive Rates: We offer competitive rates and work with over a dozen surety bond companies to find the best price for you.
- Easy Online Application: Our user-friendly and secure online application process make for for quick and convenient bonding.
- Fast Service: We offer fast turnaround times for bond issuance.
- Support: Surety1 has a team of surety bond professionals available to answer your questions and guide you through the process.
- Positive Reviews: Surety1 has an A+ rating with the Better Business Bureau and positive reviews online.
- Licensed Nationwide: Surety1 can handle all your bond needs even if you need them in multiple states.
- Surety Bond Only Agency: Surety1 only provides surety bonds. Benefits of Working With a Surety Bond Only Agency
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003. All we do are surety bonds.
About Surety1.com
How to obtain a New York Surety Bond
Get your New York surety bond quickly and easily from the premier provider of surety bonds nationwide since 2003. For most surety bonds, our simple, three step process is:
- Complete the easy to navigate and secure online application. 1
- Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
- Sign some paperwork and pay the bond premium
Once these steps have been completed, the surety bond will be shipped to the bond applicant.
The above is a comprehensive list and description of most surety bonds required in the State of New York.
If you encounter any problems along the way, contact us via email @ info@surety1.com or phone (877)654-2327. Our friendly professional surety bond agents are ready to help.
Surety1 was founded in 2003 and helps thousands of clients find the best prices on their surety bonds. We take pride in our work so that we can give you great service. Learn more about Surety1.