New York Contractor License Bond Requirements
Several different municipalities in the state of New York require applicants for contractor licenses and permits to obtain a contractor license bond before they can perform work.
Bond amounts for contractors across the state vary but are typically between $5,000 and $20,000. Such bonds are most commonly required of home improvement contractors, plumbing contractors, and sewer and drain contractors.
Some of the municipalities that require a bond include New York, Buffalo, Hempstead, Putnam County, the Town of Ramapo, and others.
To determine whether your municipality requires you to obtain a bond to perform work as a contractor, make sure to contact your local licensing office.
Why Is This Bond Required?
Bonds for contractors in New York guarantee that licensed or registered contractors will comply with any applicable provisions from the NY Code as well as those in local regulations.
They act as a form of financial protection to anyone who is harmed by the actions of a contractor whose services they have made use of.
A bond claim can be filed whenever a contractor causes losses or damages to an individual. In such a case, the surety that backs the bond must investigate the claim and determine what amount of compensation to extend.
Compensation for a bond claim can be as high as the full penal sum of the bond if needed.
Are you new to surety bonds? See our detailed ‘What is a surety bond’ guide for a detailed explanation of how bonds work, why businesses are required to get bonded, and more!
See the following sections for more information about the cost of getting your contractor license bond, and how to get bonded!
If you want to know more about the bonding requirements for contractors in New York, call us at 866.450.3412.
What’s The Cost of The New York Contractor License Bond?
Bond amounts for contractors across the state of New York vary. Some of the bond amounts across the state include:
- Applicants for a home improvement contractor license in NYC must post a $20,000 bond.
- Applicants for a home improvement contractor registration in Putnam County must submit a $25,000 bond.
- Applicants for a plumbing contractor license in Westchester County must submit a $10,000 bond.
- Applicants for a sewer license in the town of Ramapo must post a $10,000 bond.
The bond amount is not the same as the cost of your bond. The cost of your bond is a fraction of the total amount. It is determined by the surety, based on the following factors.
Factors That Determine Your Bond Cost
Your personal credit score is the most important factor that determines the cost of your bond, also known as the bond premium or bond cost. The higher your credit score is, the lower your bond cost will be.
Applicants with a high credit score of 700 FICO or more can typically get bonded at a rate as low as 1% of their bond amount. Those with a lower score can expect to get bonded at a rate of up to 3%, whereas applicants with very low scores are bonded at a rate of 3%-5%.
Sureties also consider other types of factors when calculating your bond rate. These include:
- Personal and business financial statements
- Fixed and liquid assets
- Work experience and record
To get a full overview of how sureties determine a bond’s cost, see our detailed surety bond cost guide!
See the table below for an estimate of the cost of your bond, based on credit score.
| New York Contractor License Bond Cost Based on Credit Score | |||||
| License type | Bond Amount | Credit Score | |||
| Above 700 | 650-699 | 600-649 | Below 599 | ||
| Putnam County home improvement contractor | $25,000 | $250-$500 | $375-$750 | $500-$1,000 | $750-$1,250 |
| NYC Home improvement contractor | $20,000 | $200-$400 | $300-$600 | $400-$800 | $600-$1,000 |
| Westchester County plumbing contractor | $10,000 | $100-$200 | $150-$300 | $200-$400 | $300-$500 |
| Town of Ramapo sewer contractor | $10,000 | $100-$200 | $150-$300 | $200-$400 | $300-$500 |
How to Get a New York Contractor License Bond
To get started with your contractor license bond application click on the banner below. Complete and submit our brief bond application form and we will shortly contact you to provide you with a free quote on your bond.
Call us at 866.450.3412 anytime if you have any questions regarding the bonding process for contractors in New York!
