Surety Bonds & Fidelity Bonds for New York Businesses
Performance bonds, bid bonds, license bonds, and employee dishonesty coverage—whatever bond you need, we can help you get it fast.
Need a Bond Fast? We Can Help.
Get competitive quotes on surety bonds, contractor bonds, and fidelity bonds for your New York business.
Bonds Are Often Required—Not Optional
Many businesses discover they need a bond only when applying for a license, bidding on a contract, or meeting client requirements. Without the required bond, you can't do business. Working with an experienced bond agent ensures you get the right bond, at the right price, when you need it. We work with multiple surety companies to find options for all credit profiles.
What Is a Surety Bond?
A surety bond is a three-party agreement that guarantees one party will fulfill their obligations to another. Unlike insurance—which protects the purchaser—a surety bond protects the party requiring it. Think of it as a financial guarantee backed by a surety company.
If the bonded party (called the "principal") fails to meet their obligations, the surety company pays the party that was harmed (the "obligee") and then seeks reimbursement from the principal. This makes bonds a form of credit rather than pure risk transfer.
Bonds provide financial assurance and accountability across countless business situations—from guaranteeing a contractor will complete a project, to ensuring a business will comply with licensing regulations, to protecting against employee theft.
The Three Parties
- 1.Principal
The party who purchases the bond and promises to perform
- 2.Obligee
The party protected by the bond (often a government entity or project owner)
- 3.Surety
The insurance company backing the bond and guaranteeing payment
Types of Bonds We Offer
Bonds fall into two main categories: surety bonds (guaranteeing performance or compliance) and fidelity bonds (protecting against employee dishonesty). Here are the most common types:
Contract Surety Bonds (Construction)
Required for construction projects, especially public works. These bonds guarantee contractors will complete projects and pay subcontractors and suppliers.
Bid Bonds
Guarantees you'll enter a contract at your bid price if selected. Typically 5-10% of the bid amount. Required for most public project bids.
Performance Bonds
Guarantees you'll complete the project per contract specifications. Usually 100% of contract value. Required for public projects over certain thresholds.
Payment Bonds
Guarantees you'll pay subcontractors, laborers, and material suppliers. Usually paired with performance bonds. Protects the project owner from liens.
Commercial Surety Bonds
Required by government agencies, courts, or private entities to ensure compliance with laws, regulations, or contractual obligations.
License & Permit Bonds
Required by states and municipalities for various professional licenses (contractors, auto dealers, collection agencies, etc.)
Notary Bonds
Required for notaries public in New York. Protects the public from negligent or improper notarization.
Court Bonds
Required in legal proceedings (appeal bonds, guardianship bonds, administrator bonds, injunction bonds).
Public Official Bonds
Required for elected and appointed government officials to guarantee faithful performance of duties.
Motor Vehicle Dealer Bonds
Required by NY DMV for auto dealers. Bond amount varies by dealer type and volume.
Freight Broker Bonds
Required by FMCSA for freight brokers and forwarders. $75,000 bond (BMC-84) required federally.
Fidelity Bonds (Employee Dishonesty)
Unlike surety bonds, fidelity bonds protect YOUR business from losses caused by dishonest employees. They're essentially crime insurance for internal theft, embezzlement, and fraud.
Business Services Bonds
Protects clients of cleaning services, home health aides, and other businesses whose employees work in client locations.
Employee Dishonesty Bonds
Covers losses from employee theft, forgery, and fraud. Can cover all employees or specific positions.
ERISA Bonds
Required for anyone handling employee benefit plan funds. Amount must be at least 10% of plan assets handled.
Financial Institution Bonds
Specialized coverage for banks, credit unions, and other financial institutions against employee dishonesty and other crimes.
Not Sure What Bond You Need?
We can help you explore bond options for your situation and compare rates from multiple surety companies.
Who Needs Surety Bonds?
Many industries and business activities require bonds. Here are some common situations where you'll need one:
Contractors
- •Bidding on public projects
- •State contractor license requirements
- •Private project requirements
- •Subdivision/site improvement bonds
Auto Industry
- •New and used car dealers
- •Motorcycle dealers
- •RV and trailer dealers
- •Title services
Transportation
- •Freight brokers ($75,000 federal)
- •Freight forwarders
- •Moving companies
- •Customs brokers
Financial Services
- •Mortgage brokers
- •Collection agencies
- •Money transmitters
- •Investment advisors
Professional Services
- •Notaries public
- •Insurance agents
- •Real estate brokers
- •Private investigators
Service Businesses
- •Janitorial/cleaning services
- •Home health care agencies
- •Staffing agencies
- •Security guard companies
Understanding Bond Costs
Bond premiums are typically a percentage of the bond amount, but the rate varies significantly based on your qualifications and the bond type.
Typical Premium Ranges
| Bond Type | Premium Range | Notes |
|---|---|---|
| License & Permit Bonds | 1-5% of bond amount | Good credit can be as low as 1% |
| Contractor License Bonds | 1-3% of bond amount | Financial review may be required |
| Performance/Payment Bonds | 1-3% of contract value | Rate decreases as contractor qualifies for larger projects |
| Bid Bonds | Often free | Usually included when you have bonding capacity |
| Notary Bonds | $50-$150/term | Flat rate, not based on bond amount |
| Bad Credit Bonds | 5-15% of bond amount | May require collateral |
*Rates vary by surety company and individual qualifications. Contact us for an accurate quote.
Factors That Affect Your Rate
- •Personal credit score - Higher scores get better rates
- •Business financials - For larger bonds, sureties review statements
- •Industry experience - Track record in your field
- •Bond amount - Larger bonds often have better per-dollar rates
- •Bond type - Some bonds are inherently riskier
- •Claims history - Prior bond claims increase rates
Can I Get a Bond with Bad Credit?
Yes! While good credit gets the best rates, bonds are available for applicants with credit challenges. You may pay higher premiums (5-15% instead of 1-3%) or need to provide collateral.
We work with surety companies that specialize in "substandard" bonds and can often find solutions when others can't.
How the Bond Process Works
Getting a bond is straightforward, especially for smaller bonds. Here's what to expect:
Tell Us What You Need
Contact us with the bond type, amount, and obligee (the party requiring the bond). If you have documentation specifying the bond requirements, share that with us.
Complete the Application
For smaller bonds, this may just require basic business and personal information. Larger bonds (especially contract bonds) require financial statements and business history.
Underwriting Review
The surety company reviews your application, credit, and financials to determine approval and pricing. This can take hours for simple bonds or weeks for large contract bonds.
Pay Premium & Receive Bond
Once approved, pay your premium and sign the bond. We can often provide bonds electronically for same-day delivery.
File with Obligee
Submit the bond to the requiring party (licensing board, project owner, court, etc.). We can help with this step if needed.
Frequently Asked Questions About Bonds
What is a surety bond?
A surety bond is a three-party agreement that guarantees one party (the principal) will fulfill their obligations to another party (the obligee). If the principal fails to perform, the surety company pays the obligee and then seeks reimbursement from the principal. Unlike insurance, bonds protect the party requiring the bond, not the party purchasing it.
How much does a surety bond cost?
Surety bond premiums typically range from 1% to 15% of the bond amount, depending on the bond type, your credit score, financial strength, and industry experience. License and permit bonds often cost 1-5% of the bond amount, while contractor bonds may cost 1-3% for well-qualified applicants. Poor credit may result in higher rates.
What is the difference between surety bonds and insurance?
Insurance protects the policyholder from losses, while surety bonds protect the party requiring the bond (the obligee) if the bonded party (principal) fails to perform. If a surety pays a claim, they have the right to recover from the principal. Bonds are essentially a form of credit, while insurance is risk transfer.
What types of businesses need surety bonds?
Many businesses need surety bonds, including contractors (performance and payment bonds), auto dealers, freight brokers, mortgage brokers, notaries, collection agencies, and businesses applying for various licenses and permits. Requirements vary by state, industry, and contract specifications.
Can I get a surety bond with bad credit?
Yes, surety bonds are available for applicants with less-than-perfect credit, though premiums will be higher. Some surety companies specialize in "bad credit" bonds. You may also need to provide collateral or have a co-signer. Working with an experienced bond agent can help explore available options for your situation.
What is a fidelity bond?
A fidelity bond (also called employee dishonesty coverage) protects businesses against losses caused by fraudulent or dishonest acts by employees, such as theft, embezzlement, or forgery. Unlike surety bonds, fidelity bonds protect the employer (purchaser) rather than a third party. They're commonly required for businesses handling others' money or valuables.
Related Business Coverage
Bonds are often just one piece of your business protection puzzle. Consider these complementary coverages:
General Liability
Covers third-party injury and property damage—required alongside bonds for most contractors.
Commercial Crime
Broader coverage than fidelity bonds, including outside theft and fraud.
Workers' Compensation
Mandatory coverage for NY employers—often required with contractor bonds.
Professional Liability
E&O coverage for professional services that bonds don't cover.
Important Information
This information is provided for educational purposes only and does not constitute legal or financial advice. Bond requirements vary by state, municipality, and specific contract terms. Bond availability and pricing depend on individual qualifications and surety company underwriting.
All bonds are subject to application approval and the terms and conditions of the surety company. Please consult with a licensed insurance professional to determine appropriate bonding for your specific situation.
The Stan Steele Agency is licensed to conduct business in New York State. License information available upon request or at the New York Department of Financial Services website.
Get Your Bond Fast
Whether you need a contractor bond, license bond, or fidelity coverage, we can help you get approved quickly at competitive rates.
Why Choose Us for Bonds:
- ✓ Same-day approvals on many bond types
- ✓ Multiple surety companies for competitive rates
- ✓ Solutions for all credit profiles
- ✓ Experienced guidance on bond requirements
- ✓ Renewal reminders to keep you compliant
Serving New York businesses since 1969 • Fast approvals • All credit welcome
