New York Car Wash Bond
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How much does a New York City car wash bond cost?
Although the bond amount for the NYC Car Wash Bond is $150,000, car wash owners only need to pay a percentage of the bond to get bonded. For highly qualified applicants, the percentage they will pay is typically between 1-3% of the bond amount—or $1,500-$4,500. Factors that are taken into account when determining a quote include credit, experience in the industry and financial information. Contact a surety specialist for your free surety bond quote!
What is a New York City car wash bond?
The $150,000 surety bond car wash operators are required to submit are intended to prevent wage theft. The bond enforces protections for consumers and the car wash workers, who have been vulnerable to mistreatment by some car wash owners in the past.
Employees benefit from this bond because it protects them from employers taking advantage of them financially and legally. With this bond, employees are guaranteed wages earned, fringe benefits, gratuities, and interest.
This bond also ensures car wash owners will fulfill obligations in a timely manner, properly and accurately pay employees and maintain a healthy and safe environment.
Why do I need a car wash bond?
Car wash bonds are a licensing requirement established by the New York Department of Consumer Affairs. If a car wash shuts down or disobeys laws regarding legal obligations, the bond guarantees employees will still collect their salaries, and harmed persons can file a claim against this bond and thus get reimbursement for their losses.
This surety bond can also provide coverage for fines or obligations owed to the city and even damages to vehicles or people who received car wash services. The New York City car wash surety bond holds operators liable for their actions.
New York City car wash operator license requirements
You must have a car wash license if your business cleans vehicles by means of washing, detailing, drying, polishing, vacuuming, or other methods of cosmetic care. To operate a car wash in New York City, car wash owners must fulfill the following licensing requirements:
- Submit a license application
- Submit a car wash self-certification
- Provide a sales tax ID number or a certificate of authority application confirmation number from the State Department of Taxation and Finance
- Provide copies of workers’ compensation insurance, disability benefits insurance, commercial general liability insurance and unemployment insurance (if applicable)
- Pay license fee(s)
- Provide a $150,000 car wash bond
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