Will I Need A Surety Bond For New York If I Wish To Conduct Business There?

Like so many questions; the only answer can be – maybe; probably. A full answer will depend more upon the type of business that you wish to engage in and who your prospective customers are likely to be; rather than where in; either New York City; or, New York State; it is that you intend to setup your business.

The Wise Businessman Takes Out Insurance

As in life; there are risks associated with any business; fire, flood, theft, accidents, etc can all affect your business financially and it is always wise to have insurance coverage to protect you against these (all too common) occurrences. Usually, you contact an insurance broker; discuss your business activities and then select from a recommended list of policies for the best protection you can afford. Your insurance policies will be issued by an insurance provider but the risk will be underwritten by a financial group of people; who agree to share the costs of any claims.

Surety Bonds Are Somewhat Different

Insurance is basically protection against something happening to your business; for example, if your shop burns to the ground. Surety bonds are a different type of insurance that protects you against the consequences of someone else having a financial claim against your business. You (as the principle) purchase these bonds from a guarantor; who might also be an insurance provider; but could be a bank or other sort of financial institution. The bond guarantees payment to a specified entity; known as the obligee; in the event of their having a proven, specified claim against your business. Many businesses are reluctant to tie up their money in the purchase of such bonds; but, there are many instances where you have no choice but to have at least one Surety Bond For New York; if you wish to do business there.

You May Find That You Must have Surety Bonds

A Surety Bond For New York can cover many different contingencies and whether or not one is required may vary with different locations around the State. Authorities often use mandatory bonding as part of their business permit and licensing requirements. A civil contracting company is most likely to require at least a performance Surety Bond For New York if they intend to bid for any contracts with the authorities there. A financial company might need a fidelity bond to protect themselves from claims arising out of employee fraud. Even a humble retail shop owner could find that a tax Surety Bond For New York is needed before they can open their doors to customers. Hence, the “probable” answer in the first sentence above.

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