New York service contract provider bonds.
From $500.
A registered New York service contract provider must demonstrate financial responsibility under Insurance Law Article 79. One of three ways is a security deposit with the Superintendent of at least 5% of gross consideration received, subject to a $50,000 minimum, which may be a surety bond. Premiums cost 1% of the bond amount.
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How much does a New York service contract provider bond cost?
1% of the bond amount, from $500 at the $50,000 minimum. Enter your amount in the calculator for the exact price.
Three steps. One sitting.
No long underwriting queue for the standard provider security bond — enter your amount, pay, and file with the Department. Here is the whole thing:
Apply online
Provider details, the deposit amount your registration requires, and the effective date. That is the application. No credit check up to $25,000.
Issued on the spot
Most provider security bonds issue right after purchase, priced at 1% of the bond amount. Larger books may get a brief underwriter look.
File with the Superintendent
Your executed bond and power of attorney arrive by email, ready to file with your Article 79 registration or renewal. Wet-ink originals mailed whenever the Department insists.
What it is and who needs it.
What the service contract provider bond actually covers
A service contract is the extended warranty a consumer buys on an appliance, a vehicle, an electronic device or a home system: a promise to repair, replace or maintain for a period after the manufacturer’s warranty runs out. New York brought them under the Insurance Law in Article 79, added by chapter 614 of the Laws of 1997 and effective 15 January 1998. The provider — the party contractually obligated to perform — must obtain approval of a registration from the Superintendent under § 7907, at a fee of $250 for each year or part-year the registration is in effect.
Registration is conditioned on assuring the faithful performance of your obligations to contract holders, and § 7903(c) gives three ways to do it. One: insure the performance of all your service contracts under a service contract reimbursement insurance policy. Two: maintain a funded reserve of at least 40% of gross consideration received and place a financial security deposit with the Superintendent of not less than 5% of gross consideration received, with a $50,000 minimum — which may be a surety bond issued by an authorized surety, securities, cash, or a letter of credit from a qualified United States financial institution. Three: maintain a net worth or stockholders’ equity of at least $100,000,000 and file financial statements with the Superintendent.
This bond is the second route’s deposit, and it is the one that keeps a growing provider’s capital free. Two things to plan for. The deposit is a percentage of your book, so it moves as gross consideration grows — re-file at the higher amount rather than letting the deposit fall short. And the net-worth route has a trapdoor: a provider relying on the $100,000,000 threshold whose net worth falls below it must comply with the insurance or reserve-and-deposit option within 45 days, which is not a lot of time to arrange security from scratch.
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 the Superintendent. Your executed bond and power of attorney arrive by email, ready to file with your Article 79 registration or renewal. Wet-ink originals mailed whenever the Department insists.
What sets the price
The premium is 1% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.
No credit check up to $25,000. 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 instantly.
These are the actual underwriting fields — provider details, the deposit amount your registration requires, the effective date. No credit check up to $25,000.
Start the application →Common questions.
Other New York bonds.
The same bond in nearby states.
Price and requirements checked on the carrier’s application, . Page updated .
Get the Article 79 registration through.
Premiums from $500, no credit check up to $25,000. Enter the deposit your registration requires and file with the Superintendent. Free until issued.