Service contract provider’s bond cost
Surety Bonds offers service contract provider’s bonds in New York for different costs depending on each applicant’s individual credit report.
Even though this bond is subject to underwriting, our surety experts will work hard to find you the best price for your unique credit situation. The required bond amount that needs to be posted must be in the penal sum of $50,000.
Why this bond
Posting a surety bond means protecting people from any unjust business practices or poorly performed services conducted in New York. This specific bond type assures that if consumers are in need of a repair to a specific item or property, they have coverage under the service contract.
Service contracts are valid for a specific duration of time. They are put in place to ensure the repair, replacement or maintenance of property due to defective materials, poor workmanship or wear and tear.
If a service provider does not perform all services agreed upon in the service contract, the consumer is protected from any financial loss. A few of the most common types of properties guaranteed by service contracts include, but are not limited to, the following:
- Motor vehicles
- Personal electronics
- Home applications
- Certain residential plumbing, heating, cool and ventilation
If the principal violates the terms of his or her bond agreement and a consumer is harmed as a result, the surety will pay for all damages up to the full bond amount. The principal is then responsible for reimbursing the surety in a timely and professional manner.
Service contract provider’s bond details
This bond will run continuously and in full force and effect unless otherwise canceled by the surety or the principal. If either party choose to terminate the bond prior to its set date of expiration, a 30-day written notice of cancellation is required to be submitted to the Insurance Commissioner of the State of New York. If the principal does not remain in compliance with the rules and regulations stated in the bond form, the state’s obligation to the principal will become void.
Become a service contract provider
In order to conduct business as a service contract provider in the state of New York, the applicant must first become registered. The following documents and components are required to be submitted at the time of application:
- Registration application
- Copy of New York Department of State filing receipt
- Administrator’s Acknowledgement of Obligations (if individually applicable)
- Child support form
- Proof of financial responsibility
- Any additional documents relevant on a case-by-case basis
- All required registration fees
Apply for your surety bond
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