New York Well Plugging and Surface Restoration Bond
Obligee Info:
State of New York Department of Environmental Conservation Division of Mineral Resources625 Broadway
Albany NY 12233
Cancellation Period:
90 days
Limit:
$0 - $999,999
Credit Check Required?
Yes
Businesses are required to file a 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 Well Plugging and Surface Restoration Bonds?
Credit checks are required for the New York Well Plugging and Surface Restoration Bond.
Why is the New York Well Plugging and Surface Restoration 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 Well Plugging and Surface Restoration bond work?
New York Well Plugging and Surface Restoration 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 Well Plugging and Surface Restoration 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.