New York Workers Compensation Bond
What is a New York Workers Compensation Bond?
It is required of any person, firm, or corporation who has applied for a license from the Workers' Compensation Board of the State of New York as a self-insured employer. This bond will be used to secure the liability of the applicant as a self-insured employer.
As the primary condition of the bond, the self-insured employer is required to faithfully perform all duties required. That includes complying with the provisions of Section 50, Subdivision 3 of the New York State Workers' Compensation Law as well as the rules as regulations of the Workers' Compensation Board of the State of New York. One of which is to pay any of the obligations within 30 days of becoming due.
Failure to comply with the relevant laws, rules, and conditions of the license will allow the Chair of the Workers' Compensation Board of the State of New York to file a bond claim.
How much does a New York Workers Compensation Bond cost?
Bond premium will depend on the credit score of the self-insured employer and the bond amount that will be determined by the Chair of the Workers' Compensation Board of the State of New York.
If you have an excellent credit score, you will be eligible for a low bond premium. Bond premium starts at 2% of the bond amount.
Do you want to know your bond premium right now? Get your FREE SURETY BOND QUOTE RIGHT HERE
How can I get a New York Workers Compensation Bond?
- Apply for a New York Workers Compensation Bond: You may send your application for this bond HERE!
- Prequalification process – Once we have received your application, you will be asked to submit documents that the underwriter will check in order to determine the following:
- Proof of your financial capability
- Your business’ history
- Your credit score
In order to avoid any delay, make sure that your requirements are complete prior to submitting them.
- Pay the bond premium
- Sign the indemnity agreement
- Bond issuance
The entire process can take a day as long as all the documents are complete. This will be done through our secured online transaction management system.
How does a New York Workers Compensation Bond work?
This bond will be used to protect the Chairman of the Workers' Compensation Board of the State of New York (Obligee) from the failures of the self-insured employer. The Obligee can file a bond claim if the Principal fails to perform the bonded obligations. The Principal is the self-insured employer named in the bond. The Surety is the party who will financially support the Principal. In doing so, the immediate financial responsibility will be shouldered by the surety. When a bond claim is made by the obligee, it is the duty of the surety to settle the claim once its validity has been determined.
Ready to apply for your surety bond? START HERE!