The New York City Department of Consumer Affairs is now accepting applications for car wash licenses and will begin enforcement of the Car Wash Accountability Act on December 4th. Among the requirements for licensing under the new Act is the requirement for a $150,000 Car Wash Bond.
License bonds such as this new Car Wash Bond provide indemnification for loss or damage resulting from a license holder’s compliance with the law or regulation. In the case of this particular bond, if the car wash owner violates the law, a claim can be made against the bond. Under the Car Wash Accountability Act, the bond will cover:
- Any fine, penalty and/or obligation due the city by the car wash
- Any final judgment recovered for damages by any person due to services provided by the car wash
- Any final judgment recovered by the car wash’s employee for nonpayment or underpayment of wages
Goldleaf Surety Services works with several surety companies who are excellent markets for the New York City Car Wash Bond. If you would like more information on this bond or need assistance placing this bond for your client, Goldleaf Surety Services’ knowledgeable and experienced staff is available to assist you.