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New York Public Construction Bonds

New York requires surety security when public improvement contracts; State agencies may dispense with bonds below $100,000, or below $200,000 in specified non-multiple-award cases; amount stated in the contract; payment bond may be required for claimant protection. If a bond is dispensed with on a qualifying State contract, New York allows 20% retainage until completion and acceptance; the public owner keeps bond copies available for inspection. 1,2

What Is Surety Bonds?

A surety bond guarantees that your business meets a specific obligation to a customer, contracting party or government agency. If a contract, license or permit requires one, get its exact form and amount; a bond is not insurance for your own losses. Read the national Surety bonds guide.

New York Requirements

RequirementDetails
Public construction securityPublic improvement contracts; state agencies may dispense with bonds below $100,000, or below $200,000 in specified non-multiple-award cases; amount stated in the contract; payment bond may be required for claimant protection. 1

What to Watch for in New York

  • Check the New York Contract Trigger

    New York law triggers public-work security when public improvement contracts; State agencies may dispense with bonds below $100,000, or below $200,000 in specified non-multiple-award cases. Amount stated in the contract; payment bond may be required for claimant protection Ask the contracting agency to confirm whether your project falls under this rule and to state the bond penal sum in the bid documents. 1

  • New York Has Another Bond Rule for This Work

    If a bond is dispensed with on a qualifying State contract, New York allows 20% retainage until completion and acceptance; the public owner keeps bond copies available for inspection. Before binding the surety, match the required obligee, bond form, and covered obligation to this separate rule. 2

  • Match the Solicitation’s Bond Form

    The State Finance Law §137 governs this statutory obligation, while the project solicitation identifies the obligee, filing deadline, and any bid-security details. Get the final form approved before the bid date and confirm that the named surety is authorized for New York work. 1,2

Who Regulates Insurance in New York

New York State Department of Financial Services

New York DFS supervises insurance companies and producers, administers insurance law and accepts consumer complaints about property and casualty policies, including commercial insurance. 3,4,5,6

Surplus-lines tax and stamping office

Reported tax rate: 3.6% of gross premium, less returned premium; ELANY stamping fee is 0.15% through 2026 and 0.17% for policies incepting on/after Jan. 1, 2027 When New York is the insured’s home state, excess-line tax is 3.6% of gross premium less returned premium. ELANY’s September 20, 2026 bulletin sets a 0.15% stamping fee through December 31, 2026 and 0.17% for policies incepting on or after January 1, 2027; statutory search requirements and guaranty-fund protection depend on the applicable New York excess-line rules. 7,8,9,10

Excess Line Association of New York

Providers With Documented State Licenses

These providers publish a national listing for Surety bonds; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in New York. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

  • TechInsuranceSpecialty Program Group LLCInsurance producer · checked 2026-09-28TechInsurance’s current licensing page names Specialty Program Group LLC / SPG Insurance Solutions and lists state license numbers, but labels Rhode Island “Individual licenses” rather than identifying a license for the named agency. RI is omitted because this disclosure does not establish agency authority there; this is a search limitation, not an assertion that the company is unlicensed. The remaining state entries are company-reported and are not an insurance product availability map. 15

Questions to Ask Before You Buy in New York

  1. Which New York statute or procurement rule triggers this bond for our project, and what is the exact penal sum?
  2. Will the obligee accept another form of security, and who must approve that substitution in New York?
  3. What notice, filing, and claim deadlines should our subcontractors and suppliers track under this bond?

Surety Bonds in New York: FAQ

When does a New York public construction project require a surety bond? 1

Public improvement contracts; state agencies may dispense with bonds below $100,000, or below $200,000 in specified non-multiple-award cases. Amount stated in the contract; payment bond may be required for claimant protection 1

Does New York have another bond requirement beyond the public construction bond? 2

Yes. If a bond is dispensed with on a qualifying State contract, New York allows 20% retainage until completion and acceptance; the public owner keeps bond copies available for inspection. 2

Surety Bonds in Other States

Other Coverage in New York

Sources

  1. State Finance Law §137. State Finance Law; State Finance Law §137. Accessed 2026-09-29.
  2. State Finance Law §139-f. State Finance Law; §139-f: progress payment and retainage provisions tied to performance and payment bonds. Accessed 2026-09-29.
  3. New York State Department of Financial Services. New York State Department of Financial Services; Official regulator homepage. Accessed 2026-09-28.
  4. Who We Supervise. New York State Department of Financial Services; DFS describes insurance oversight and provides links to company and producer searches. Accessed 2026-09-28.
  5. Consumer Complaints. New York State Department of Financial Services; Official portal files insurance complaints for health, life and property/casualty insurance. Accessed 2026-09-28.
  6. New York Insurance Law §2118(d)(1). New York State Senate; Current statutory text: 3.6% of gross premiums less returned premium when New York is the insured’s home state. Accessed 2026-09-28.
  7. ELANY Bulletin 2026-20: Notice of Change in Stamping Fee. Excess Line Association of New York; September 20, 2026 bulletin: 0.17% applies to policies incepting from Jan. 1, 2027; endorsements on policies incepting Jan. 1, 2023–Dec. 31, 2026 retain 0.15%; excess-line tax remains 3.6%. Accessed 2026-09-28.
  8. New York Insurance Law §2118. New York State Senate; Excess-line broker duties and filing requirements; §2118(a) due care; exceptions should be applied only where statutory conditions are met. Accessed 2026-09-28.
  9. New York Insurance Law §2118. New York State Senate; Excess-line statutory duties and policies; source is used for placement context. No state-specific guaranty cap/note included. Accessed 2026-09-28.
  10. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  11. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  12. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  13. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  14. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  15. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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