Most Common Surety Bonds in New York

The state of New York contains not only one of the United States’ greatest cultural hubs but some of its loveliest natural beauty, too. This scenic and culturally rich state is also full of thriving businesses, from construction contractors to auto dealerships to mortgage brokers.

To ensure that these businesses operate ethically, the state of New York requires many to purchase surety bonds. At Surety Bonds Direct, we supply every surety bond New York businesses need, but some stand out for their high popularity. We provide a quick summary of each of these popular New York surety bonds below.

Need a fast and practical guide to how surety bonds work? See our article What Is a Surety Bond?

1. New York Alcoholic Beverage/Liquor Tax Bond

   Coverage Amounts:

   • Liquor License Bond: $1,000
     Instant Purchase Price: $75
   • Beverage Distributor License Bond: Up to $10,000Instant Purchase Price: Starts at $100
   • Liquor Manufacturer or Wholesaler License Bond: Up to $10,000Instant Purchase Price: $120

   Businesses that sell or manufacture alcoholic beverages in New York must comply with numerous rules regarding alcohol taxation. A New York alcoholic beverage or liquor tax bond guarantees that the state will receive tax revenues that a business owes, even if it does not fulfill its tax obligations.

2. Durable Medical Equipment, Prosthetics, Orthotics Supplier (DMEPOS) Bond

   Coverage Amount: $50,000

   Medical providers in New York (and every other state) need to purchase DMEPOS bonds before billing Medicare for durable medical equipment. The DMEPOS bond requirement helps reduce Medicare fraud and keeps DME providers accountable to the Center for Medicare and Medicaid Services (CMS). It’s one step in the long and sometimes complex process of receiving Medicare accreditation.

3. New York Mortgage Broker, Originator, or Banker Bond

   Coverage Amounts:

   • Individual or Originating Entity: Up to $25,000
     Instant Purchase Price: Starts at $100
   • Registered Mortgage Broker: $10,000
     Instant Purchase Price: $100

   Federal law requires that every U.S. state have a licensing program for mortgage brokers and originators. These programs are part of the NMLS system that helps protect consumers from unscrupulous mortgage originators. In New York, as in many other states, the mortgage broker licensing process requires mortgage brokers and originators to obtain mortgage broker surety bonds.

4. New York Motor Vehicle Dealer or Broker Bond

   Coverage Amounts:

   • New Vehicle Dealer Bond: $50,000
   • Used Motor Vehicle Dealer Bond (50+ vehicles) or Automobile Broker Bond: $100,000
   • Used Motor Vehicle Dealer Bond (<50 vehicles): $20,000
     Instant Purchase Price: $130

   Motor vehicle dealers in New York must purchase auto dealer surety bonds to guarantee that they’ll comply with consumer protection laws and other rules that govern auto dealers. The surety bond cost depends on how many vehicles the auto dealer sells in a year, as well as other factors such as whether the vehicles are new.

5. New York Independent or Public Adjuster Bond

   Coverage Amount: $1,000
   Instant Purchase Price: $87.50

   New York’s independent and public insurance adjusters work to investigate and negotiate insurance claims and settlements. Independent adjusters work as contractors for insurance companies, while public adjusters work for claimants. New York independent or public adjuster surety bonds guarantee that insurance adjusters won’t abuse their position or use it for personal gain.

6. Freight Broker (BMC-84) Bond

   Coverage Amount: $75,000

   The U.S. Department of Transportation requires freight broker license applicants to purchase a surety bond or create a trust fund as part of the freight broker licensing process. Many freight brokers choose a BMC-84 surety bond because the surety bond cost tends to be lower than creating a trust fund. BMC-84 bonds are other types of federally required surety bonds that are the same from one state to another.

7. New York City Process Server Bond

   Coverage Amounts:

   • Process Server Individual Bond: $10,000
     Instant Purchase Price: $200
   • Process Server Agency Bond: $100,000

   Process servers deliver legal documents to people in civil or criminal court proceedings. A process server has to uphold high standards of legal integrity, which is why New York City requires them to obtain process server surety bonds. Agencies that provide process services must purchase a different type of surety bond with a higher coverage amount.

   TIP: It’s common for municipalities in New York State, especially New York City, to require various types of surety bonds for certain businesses. If you don't see the bond you're looking for on our list of New York surety bonds, you can still request your municipal bond, just choose "I don't see the bond I need" when requesting a quote and our bond specialists will get everything set for you.

8. Professional Fundraiser Bond

   Coverage Amount: $10,000

   The NY Attorney General’s Office requires people who work as professional charity fundraisers to register with the state and obtain a professional fundraiser surety bond. This surety bond protects a fundraiser’s clients from misappropriation of funds or other unethical behavior by the fundraiser.

Surety Bonds Direct is your single-stop source for any surety bond New York businesses need. Our bond experts can get you started with a quote today—just call us at 1-800-608-9950 or get your NY surety bond quote online.

All bond amounts and instant prices are as of the article publishing. Please see details for your specific bond for the msot up-to-date information.