New York Surety Bond Types
What Surety Bond is Right for you?
You need a surety bond, but what kind of bond do you need? With over 25,000 bond types getting the right bond can be a tough task. If you don't see your bond here that doesn't mean we can't help you.
Take the first step to finding out what bond you need and what rate you qualify for.
Surety bond holders in New York protect the people of the state by financially guaranteeing the quality of their work. Because many bonds function in different ways, the type of protection a bond offers varies depending on the specific bond type the individual or business has. While understanding the bonding process in New York might seem complicated or confusing at first, a little research could go a long way in protecting your investments, as well as those of your clients.
The New York state government requires a wide array of individuals and businesses to become bonded to discourage them from participating in fraudulent activities. However, if the principal (or bonded entity) does choose to behave unethically, then the consumer (or obligee) can make a claim against the bond. If the claim is confirmed the surety company compensates the obligee for damages, leaving the principal paying retribution up to the bond’s full value. This is the major difference between insurance policies and surety bonds: whereas insurance policies offset predictable financial losses in the future, bonds aim to prevent unethical business practices to avoid financial losses.
New York surety bond costs
New York surety bond rates and premiums differ depending on a number of factors, including the type of bond being issued and the principal’s financial standing, among other determinants that a surety company might consider. Bonds usually cost between 1 and 3 percent of the bond’s face value. For instance, if the desired bond amount is $10,000, a typical principal with a good credit report would probably pay about $100 to $300 for the bond. However, the bond’s cost will be higher if the principal’s financial history has negative marks, since now the surety takes a greater risk when guaranteeing the principal’s work. A principal who has a poor credit history will need to find a surety bond agency like Surety Bonds.com that issues non-standard (or bad credit) bonds to high-risk clients.
Getting bonded in New York
If you already know the specific New York surety bond you need, look through our collection below to see if we have the form on file. If you don’t see the exact one you’re looking for, contact one of our friendly surety bond specialists to help you find it.
Don’t worry if you’re not sure which New York surety bond will give you the best protection for your needs. State and local government bonding requirements and regulations can be found online most of the time. For instance, the state’s department of licensing website usually provides information about bonds that are required before a business can receive a license to operate in the state. For example, professionals in New York-from car dealers to mortgage brokers-get bonded to protect their clients.
Your New York surety bond agency
To learn more about these and other bond types, try browsing our site for information about different kinds of bonds and how they work. As always, contact a friendly surety bond specialist if you need assistance at any point during the process.
Once you have a basic understanding of the process, applying for a bond online can be completed in just a few minutes. If you have a good credit report and financial history, you can usually get a price quote back quickly. The extra effort you make to secure a surety bond for you or your business is an easy and worthwhile investment that offers a great deal of protection-and we’re here to help.