New York LIPA utility deposit bonds.
From $100.
A commercial or non-residential customer applying for electric service from the Long Island Power Authority (LIPA) can be asked for a security deposit under LIPA’s Tariff for Electric Service, and can post a surety bond in place of cash. LIPA sets the deposit amount. Premiums cost 2% of the bond amount, $100 minimum.
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How much does a New York LIPA utility deposit bond cost?
2% of the bond amount, from $100. Enter your amount in the calculator for the exact price.
Three steps. One sitting.
No long underwriting queue for the standard utility deposit bond — enter your amount, pay, and file with LIPA. Here is the whole thing:
Apply online
Your business details, the deposit amount LIPA’s billing notice set, and the effective date — that is the application.
Issued
No credit check up to $15,000 in the application, and most applications approve instantly.
File with LIPA
Submit the executed bond to satisfy the security-deposit line on your LIPA account instead of a cash deposit. Wet-ink originals mailed on request.
What it is and who needs it.
What the LIPA utility deposit bond actually covers
A utility deposit bond is a substitute for cash collateral. When a commercial or non-residential customer applies for — or has a history that leads LIPA to require additional security for — electric service, LIPA’s Tariff for Electric Service lets the customer post a security deposit. Rather than tying up that cash for the life of the account, the customer can file a surety bond in the same amount.
It is a three-party arrangement: you (the principal), the surety carrier, and LIPA, doing business as Long Island Lighting Company (the obligee). If your account goes to final bill unpaid, LIPA can draw against the bond up to its face amount to cover the balance — and if the surety pays, you repay the surety. It is not insurance for you.
LIPA’s published tariff terms describe the deposit as generally twice the account’s actual or estimated average monthly bill over a 12-month period, adjusted upward for a business with a pronounced peak season. There is no single statewide statute fixing this figure — it runs through LIPA’s own tariff and account underwriting. Enter the amount on your LIPA notice; we price the bond from a $100 minimum with no credit check up to $15,000.
You need this bond if you are
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The premium covers a one-year term from the effective date you choose.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
File with LIPA. Submit the executed bond to satisfy the security-deposit line on your LIPA account instead of a cash deposit. Wet-ink originals mailed on request.
What sets the price
The premium is 2% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.
No credit check up to $15,000. Above that, the carrier may run a soft pull, which never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, issued fast.
These are the actual issuing fields. No credit check up to $15,000.
Start the application →Common questions.
Other New York bonds.
Price and requirements checked on the carrier’s application, . Page updated .
Free up cash instead of a LIPA deposit.
From $100, no credit check up to $15,000. Enter your required amount and file with LIPA the same day.