Home Improvement contractors in New York need to be licensed and have a valid surety bond. Learn what these bonds guarantee and how to easily purchase one online without a credit check.
New York Home Improvement Contractor License Bonds are easy to obtain for anyone. They can be purchased online at Axcess Surety without a credit check. Simply enter your information into the online application, purchase your bond and print the bond the same day. Most contractors can have their bond in minutes.
Yes. Since no credit check is required, they can be obtained by anyone. Even those with past credit challenges can easily get a New York Home Improvement Contractor License Bond.
New York code reads as,
In general, anyone performing residential construction or improvement will need to be licensed. Visit our License Guide for NY Home Improvement Contractors to learn more about licensing requirements.
The bond simply guarantees that the licensed home improvement contractor will comply with all laws, rules and regulations covering home improvement contractors in the state. In my experience, most contractors will never have a claim against their bond. Still, every effort should be made to follow all rules and regulations.
The New York Home Improvement Contractor is the principal on the bond. The obligee is the NYC Department of Consumer and Worker Protection (DCWP). The DCWP receives the benefit of the bond on behalf of consumers, workers and subcontractors. The surety is the third-party providing a financial guarantee on behalf of the principal. Should the principal violate any law or regulation for home improvement contractors, a claim can be made against the bond directly or through the DCWP. The surety will then investigate the claim and pay it if necessary.
The NY Home Improvement Contractor License Bond provides a valuable service to consumers. Instead of having to collect from the home improvement contractor through costly litigation, the consumer can seek to collect directly from the surety bond company. Surety bond companies are monitored and rated on their ability to pay claims and must maintain the ability to do so.
NYC Home Improvement Contractor License Bonds are required to be in the amount of $20,000. This is the maximum amount that can be claimed against the bond regardless of the number of claims, dollar amount of claims, or number of years the surety has written the bond. This is also referred to as the penal sum. However, payment under the bond does not typically relieve the contractor of liability for further damages.
A New York Home Improvement Contractor Bond costs $100 per year for most contractors. However, most bond companies offer discounts for purchasing multiple years in advance. The bond premium will be due each time the bond is renewed.
While a New York Home Improvement Contractor License Bond must be continuously in place for as long as the contractor is licensed, the bonds generally expire at the same term as the contractor license. This is February 28th. Either the surety or contractor may cancel the bond at any time by providing the state 30 days written notice. However, the contractor will either need to replace the bond, or terminate their license.
New York Home Improvement Contractors can choose to contribute to the DCWP’s Trust Fund instead of providing a surety bond. Like a surety bond, home improvement contractors will need to pay into the bond each license renewal period. Consumers should be aware that the trust fund option may limit the amount per claim.
New York Home Improvement Contractor License Bonds are a requirement for many contractors operating in New York City. These license bonds are easy to obtain for anyone and very inexpensive. They can be purchased online at Axcess Surety Instantly. Learn more about other surety bonds and construction by visiting our Learn Page. Contractors may also visit our FAQ Page for many common questions about surety bonds. Reach out to the experts at Axcess Surety today for all your New York surety needs.
Axcess Surety is the premier provider of surety bonds nationally. We work individuals and businesses across the country to provide the best surety bond programs at the best price.
