If you live in New York and want to repair, remodel, or build residential properties, you must obtain a home improvement contractor license and license bond. Acquiring a license is something that is required by state authorities to guarantee that the contractors are fully qualified and that they are safe to do business with. Consumers and Contractors can check licensing status here.
Some of the activities that are covered under this license include replacing, constructing, or repairing swimming pools, driveways, sidewalks, fences, porches, patios, garages, and similar home improvement projects.
Like other types of contractors, a home improvement contractor must meet a range of criteria to be legally allowed to operate. One of the most important licensing requirements to provide security to the clients you will work for is the New York Home Improvement Contractor’s License Bond.
The Requirements You Must Meet to Acquire a NY Home Improvement Contractor License
As with any other licensing process for a contractor, a home improvement contractor in New York must be able to demonstrate their professional experience, along with their business know-how before they can work in the state. The regulating body that issues these licenses is the NYC Department of Consumer Affairs.
The requirements that are the most important when you are applying for this license include the following:
- The proof of a business and a home address
- Information on workers compensation insurance coverage
- Certificate of Authority Application Confirmation Number of Sales Tax ID
- Contractual Compliance Agreement
- Employees list
- Trust fund or home improvement bond
- Fingerprints (required for shareholder or member with over 10 percent stock, corporate officer, general partner, and sole proprietor)
More information can be found at NYC Consumer Affairs website.
Also, for a shareholder or member with over 10 percent stock, corporate officer, general partner, and sole proprietor, you must go to the DCA Licensing Center and take the Home Improvement Exam. It is required that you answer 21 of the 30 total questions properly. The exam comes with a fee of $50 and it must be completed within 30 days after you have submitted the licensing application.
Guarantee of the New York Home Improvement Contractor License Bond
In New York, only home improvement contractors are required to get the license bond. The bond provides a guarantee that the contractor will comply with the rules, laws and regulations of being a home improvement contractor.
Parties to New York Home Improvement Contractor Bond
The home improvement contractor is the Principal on the bond who is making the promise. The Surety is the bond company that is guaranteeing the contractor’s promise to comply with the rules, laws and regulatins. The Obligee is New York City Department of Consumer Affairs.
How to Get a New York Home Improvement Contractor Bond
These license bonds are freely written by MG Surety Bonds. Although some surety bond companies require a credit check, we work with companies that allow us to issue these instantly so no credit check is required. This can be a big advantage for those that have had credit blemishes in the past. In most cases, we can issue the bond within minutes of speaking with a contractor. Contractors can also instantly purchase these bonds on their own by clicking the button below.
Amount of the New York Home Improvement Contractor License Bond
The State of New York Requires the bonds to be $20,000.
Cost of the New York Home Improvement Contractor Bond
The cost for most contractors will be $100 for one year or $150 for two years. Most surety bond companies will provide discounts for purchasing multiple years in advance. These discounts are usually 25% – 30%. Strangely enough, these license bonds are required to expire on February 28th of odd years. However, they are easily renewed with a continuation certificate.
Indemnity is Required
Like all surety bonds, these contractor license bonds are written on the Principle of Indemnity. That means is a valid claim is filed against the bond, the surety bond company will seek reimbursement from the contractor and indemnitors. This is a major difference between surety bonds and insurance. Contractors should do everything they can to avoid claims against their surety bonds.
Cancellation of the NY Home Improvement Contractor License Bond
The Surety can cancel this bond at any time by giving notice to the Obligee and the Principal. The cancellation will be effective 35 days after mailing the notification. If the bond is cancelled, the contractor will need to find a replacement or risk having their license revoked.
A Home Improvement Contractor License Bond is just one of many surety bonds a contractor may need. Contractors with questions can contact us anytime or visit our Surety Bonds Frequently Asked Questions Page here. At MG Surety Bonds, we want to be your surety bond broker for life and look forward to assisting you.