How to Get a New York Contractor License Bond

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.

Bond Type	Bond Amount	Bond Cost
New York City Home Improvement Contractor Bond	$20,000	Starting at $200
Putnam County Electrical or Plumbing Contractor Bond	$25,000	Starting at $250
Putnam County Home Improvement Contractor Bond	$25,000	Starting at $250
Suffolk County License and Permit Bond	$1,000–$25,000	Starting at $100
Village of Roslyn Contractor Bond	$2,000	Starting at $100
City of New York City Parks and Recreation Private Contractor Bond	$1,000–$100,000	Starting at $100
Rockland County Sewer Contractor Bond	$1,000–$20,000	Starting at $100
Schenectady County Contractor Bond	$5,000	Starting at $100
Westchester County Plumbing Contractor Bond	$10,000	Starting at $100
City of Buffalo Heating Contractor Bond	$10,000	Starting at $100
Town of Binghamton Contractor Bond	$5,000	Starting at $100
Town of Clarkstown Sewer Contractor Excavation Bond	$10,000	Starting at $100
Town of North Hempstead Road Opening Permit Bond	$10,000	Starting at $100
Town of Hempstead Sewer Contractor Bond	$2,000	Starting at $100
Town of Hempstead Sewer & Drain Opening Bond	$5,000	Starting at $100
Town of Huntington Grading Permit Bond (up to 5,000 cubic yards)	$20,000	Starting at $200
Town of Huntington Grading Permit Bond (5,001–15,000 cubic yards)	$30,000	Starting at $300
Town of Huntington Grading Permit Bond (15,001+ cubic yards)	$50,000	Starting at $500
City of Kingston Contractor Bond	$10,000	Starting at $100
City of Newburgh Blasting Contractor Bond	$50,000	Starting at $500
Town of Newburgh Building Permit Bond	$10,000	Starting at $100
Town of Ramapo Sewer Contractor Bond	$10,000	Starting at $100
Village of Sleepy Hollow Contractor Bond	$1,000	Starting at $100
New York City Single Location Street Obstruction Permit Bond	$10,000	Starting at $100
Suffolk County Water Authority Performance/Labor/Material Payment Bond	$1,000–$100,000	Starting at $100
Town of Babylon License and Permit Bond	$2,000	Starting at $100
City of Amsterdam Electrician License Bond	$5,000	Starting at $100
New York City Street Obstruction Permit Bond (51–100 Locations)	$100,000	Starting at $1,000
Rockland County Stream Control Act Permit Bond	$1,000–$25,000	Starting at $100
Rockland County Stream Control Act Permit Bond	$25,001–$100,000	Starting at $250
Suffolk County Highway Permit Bond	$1,000–$50,000	Starting at $100
Town & Village of Harrison Excavation and Soil Removal Bond	$1,000–$100,000	Starting at $100
Drywall Taping Industry Board Wage Bond ($0–$40,000 payroll)	$10,000	Starting at $100
Drywall Taping Industry Board Wage Bond ($40,000–$100,000 payroll)	$20,000	Starting at $200
Drywall Taping Industry Board Wage Bond (Over $100,000 payroll)	$30,000	Starting at $300