Overview of New York Home Improvement Contractor Bond Requirements

Applicants for a home improvement contractor license in NYC must post a $20,000 contractor license bond. The bond must be posted to the DCA along the rest of your application.

What is the purpose of this bond?

This surety bond guarantees your compliance with all provisions of the New York City Administrative Code that define your conduct as a home improvement contractor in the city.

If you act in a way that causes losses or damages to the city or any individual you provide contractor services for, a claim can be filed against your bond. Claims are a way for such parties to secure financial compensation.

The amount of compensation which the surety may extend to claimants in such an instance may be as high as the full amount of their bond.

If you have no experience with getting bonded, see our ‘What is a surety bond' guide for a good explanation of how bonds work!

Start your surety bond application today! Why us?
  • The lowest possible rates
  • A 100% money-back guarantee
  • Access to specialty programs, not available to small agencies

Learn more about the cost of your bond, the claims process, and how to get bonded in the sections below!

If you have any questions about getting your home improvement bond, call us at (866)-450-3412!

How Much Does The New York Home Improvement Contractor Bond Cost?

The cost of your bond is a fraction of its total amount. When you apply to get bonded, the surety will provide you with a quote on your bond which will be based on the following criteria.

Factors that determine your bond premium

There are several factors that influence the cost of your bond. The most important one among them is your personal credit score.

Sureties use credit score to approximately determine the financial strength and reliability of an applicant. The higher their score, the more reliable they are considered.

Based on their credit scores, applicants are grouped in three separate bond rate categories.

  • Applicants with very high credit scores are usually offered a rate of between .75% and 1.5% of the total bond amount.
  • Applicants with good to moderate scores are bonded at a rate upwards of 1.5% and for as much as 5%.
  • Applicants who currently have a low or “bad" credit score are asked to pay a rate between 5% and 15%.

Along with your credit score, your surety will likely also want to see some or all of the following:

  • Personal and business financial statements
  • Fixed and liquid assets
  • Work experience and record

See the table below for an estimate of the cost of your bond, based on your credit score!

New York Home Improvement Contractor Bond Cost Based on Credit Score

License type

Bond Amount

Credit Score
Above 700 650-699 600-649 Below 599
NYC home improvement license $20,000 $150-$300 $200-$500 $500-$1,000 $1,000-$1,500

What May Cause a Bond Claim?

Bond claims are the way in which individuals may secure compensation for any damages or losses they suffer as a result of the actions of a bonded party.

In this case, if a bonded New York home improvement contractor violates the terms of their license, causing losses to either the city of New York or a person, these may file a claim.

In particular, Title 6, Chapter 2, Subchapter V of the Rules of the City of New York states that the bond is required to guarantee home improvement contractors' compliance with all laws, rules and regulations that apply to their conduct.

Moreover, the rules also state that the bond serves to guarantee that any fines, penalties or other obligations owed by the contractor to the City will be paid.

If an action is brought against a bond, the surety that has issued the bond will investigate the claim and seek ways to resolve it. If it extends compensation to claimants, the bonded contractor must reimburse it in full. Bond agreements always include this condition which is what makes a claim against your bond undesirable.

How Can I Apply For a Bond?

Click on the banner below to complete our brief bond application form. We will then provide you with a free quote and further information about the bonding process.

Not ready to apply? Then simply get a free no-obligations quote, so you can see our low prices!

For any additional questions about getting bonded for your NYC home improvement contractor license, call us at (866)-450-3412!

Further Reading


About the author:
Todd Bryant
Todd Bryant is a graduate of Germantown Academy and the University of Pittsburgh College of Business Administration Honors College. He has been President of Bryant Surety Bonds, Inc., an A+ rated Business with the Better Business Bureau, since 2007. Licensed as a producer with the Department of Insurance, he has been published in the National Association of Surety Bond Producers newsletter and on numerous authoritative publications such as The Washington Post, Entrepreneur.com, Azcentral.com and many more.