License Compliance Bond – 3rd Party Bonds
New York City Department of Consumer Affairs Bonds
We can issue New York City Department of Consumer Affairs License Compliance Bonds immediately.
Available Bonds: Secondhand dealer, secondhand dealer general, car dealer, auto sales, dry cleaner, employment agency, pawn shop, thrift shop, antique store, or auctioneer. For all of NY, NYC and New York City’s Department of Consumer Affairs.
New York City Department of Consumer Affairs 3rd party Bond
Third Party Compliance Bond Requirement
As recently as the late 1990’s The New York City Department of Consumer Affairs has imposed a mandatory Compliance Bond requirement for those looking to be licensed or those seeking permits to perform certain business operations. For many of these classes of businesses or operations they are requiring the issuance of what they refer to as a 3rd party bond or a Third Party Bond.
What is a Third Party Compliance Bond or a 3rd Party Bond?
Contrary to popular belief, a Compliance Bond IS NOT INSURANCE, however it often mistaken as such. A Compliance Bond is the guarantee or surety that a third party will make good on a claim in the event that there is a loss. Therefore, as an example, if a second hand dealer like an auto sales shop sells someone a car that is a lemon, the surety or bonding company is not guaranteeing the worthiness of that vehicle. If the vehicle turns out to be a lemon, and the consumer files a valid complaint with the New York City Department of Consumer Affairs, the Surety Company or Bonding Company which issued the bond, on the dealer’s behalf, will make good on the claim and then seek to be remunerated from the dealer. So the dealer will pay the surety back. The idea of the Third Party Compliance Bond is that it makes it easier for the consumer to be refunded for their loss or purchase in this case.
Who Needs a Third Party Compliance Bond?
Need and have a are 2 different stories. In most cases many of the people purchasing these compliance bonds are either required to do so by the locality in which they are operating, or they wish to impart upon their prospective clients the fact that they are “Bonded”. When you see an advertisement that states “Licensed, Insured and Bonded” this is typically the bond they are referring to, however there are other forms of bonding that are just as important to many types of businesses.
How are they rated?
Normally the license and permit compliance bonds are based on the financial security of the individual or organization that is requesting them. So in many cases having acceptable or good credit does help. Normally for simple $500, $1000, or $5000 bonds required for the License and Permit Bond Requirements they are simple and somewhat less strict
What types of businesses are required to have License and Permit Compliance Bonds?
The following are some of the business types that are required to maintain Compliance Bonds in order to be issued a license.
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How long does the Bond Application Process take?
The bond quote and bond application process usually takes less than a day. In fact for most of the NYC Department Of Consumer Affairs Compliance Bonds, our office can issue them immediately, signed, sealed and stamped. From there they only need to be countersigned by yourself and a notary to be considered acceptable by the NYC DCA.
Additionally, we are also listed on the New York City Department of Consumer Affairs Compliance Bond Provider List.
