Popular Surety Bonds in NYC
Overview of Surety Bonds in NYC
Both the city and the state of New York require that applicants for a license, such as auto dealers, home improvement contractors but also nail salon owners to obtain a license bond in order to operate.
This type of bond is also required of the NYC Department of Transportation for contractors who wish to perform work on public streets and sidewalks. This bond guarantees their honest and fair operation as a licensed business.
Contractors who perform work in NYC on a public or federal contract are typically required to obtain a contract bond. This type of bond is intended to guarantee for the amount that contractors offer when bidding on a contract as well as their performance of such a contract.
Finally, courts in NYC may require persons to provide a court bond when appealing a court decision. In a different instance, a court bond may also be required by a court when appointing a fiduciary.
All bonds required in NYC serve the purpose of extending protection to the public and the city. They do so by guaranteeing financial compensation for any violations of city or state laws made by bonded businesses that result in damages or losses to the protected parties. Such compensation can be as high as the full amount of the surety bond, also known as the penal sum of the bond.
New to surety bonds? Have a look at our extensive ‘What is a surety bond’ guide!
Read on for an explanation of how the cost of your bond is determined, getting bonded with bad credit, and how to apply for your bond today.
If you want to know more about the bonding requirements in NYC, call us at (866)-450-3412 to speak to our surety experts.
NYC Surety Bond Cost
Surety bond cost is determined by the surety company you apply with for your bond. It is a percentage of the total amount of your bond.
How high or low that percentage is mostly depends on an applicant’s personal credit score. It is also influenced by their financial statements, assets and liquidity.
For example, if you wish to obtain a bond as a home improvement contractor, the cost of your bond will be a fraction of $20,000. Applicants who have a high credit score, one of over 700 FICO, are typically offered the lowest rates on their bonds. Rates vary depending on the type of bond but for high credit applicants the rate is usually between 1% and 3% of the total bond amount.
If you want to know how much exactly you would have to pay for your bond - complete our bond application form and we will provide you with a free and precise quote.
Bonds With Bad Credit
Even if you have a low credit score, this is no obstacle to getting bonded!
Applicants with low credit score or those who don’t have a credit score at all can get bonded with us thanks to our Bad Credit Program. This program makes the same bonds available to such applicants as are available to applicants with higher credit.
The only difference is that bonds under this program are issued at higher rates due to the greater risk involved in issuing them.
See the program page for a detailed explanation of the program and to request a quote on your bond!
Get Your Bond Now!
To get a free quote on your bond, complete and submit our bond application form.
We will then provide you with your quote, along with all the additional details about finalizing your application.
It takes about two working days to issue your bond after which we will mail it to you via standard mail, and via email.
If you need more information or have specific questions about getting bonded in NYC, get in touch with us at (866)-450-3412!