New York Oil Buring Equipment Installer Bond
Cancellation Period:
30 days
Limit:
$2,500
Credit Check Required?
No
Businesses are required to file a $2,500 bond with the (the "Obligee") to activate their license. The bond protects the Obligee by transferring to a surety bond company the cost of ensuring the public is compensated for damages resulting from a licensed business breaking licensing laws.
Is a Credit Check Required for New York Oil Buring Equipment Installer Bonds?
Credit checks are not required for the New York Oil Buring Equipment Installer Bond.
Why is the New York Oil Buring Equipment Installer bond required?
Businesses are required to purchase and file a bond with the to activate their license. The bond protects the Obligee by transferring to a surety bond company the cost of ensuring the public is compensated for damages resulting from the failure of a licensed business complying with the provisions of licensing laws.
How does the New York Oil Buring Equipment Installer bond work?
New York Oil Buring Equipment Installer bonds must be issued by an insurance carrier admitted by the New York Department of Insurance. The insurance company issuing any surety bond, such as the Oil Buring Equipment Installer bond, will also be referred to as the "surety company" or the "bond company". The business is referred to as the Principal, the surety bond company as the Obligor and the as the Obligee.
The surety company provides the Obligee a guarantee (the surety bond) that the customers, vendors and employees of a licensed business will receive payment for financial damages due to a violation of licensing law up the bond amount stated on the bond form ("penal sum"). The bond company also directly receives claims from the public and determines the validity of claims. Ultimately, the licensed business owners are responsible for their actions and required by law to reimburse the surety company for any payments made under the bond or face indefinite license suspension.