New York Health Club Bond
AmeriPro Surety Bonds | 844-589-9732
New York Health Clubs
New York health clubs are regulated by statute and are overseen by the New York Department of State.
Health clubs are normally required to post a surety bond as a prerequisite for licensing. This is as per statute §622-a of the General Business Law.
AmeriPro Surety Bonds will facilitate the bond amount required of your health club company whether it is a first time surety bond, or if you are required to renew an existing bond.
New York Health Club Bond: Amount Required
The amount of surety bond you are required to purchase will depend on the terms of your health club contracts with your customers, and the number of locations of your health club facilities.
For the terms of health club contracts, the breakdown is as follows:
- If your health club location sells contracts for 12 months or less, the amount of surety bond you are required to purchase is $50,000;
- Health clubs which have contracts for more than 12 months up to 24 months, are required to file a $75,000 surety bond;
- For health clubs who sell contracts longer than 24 months up to 36 months, the surety bond required is $150,000
To be added to the above surety bond requirements for terms of contracts are the number of locations of your health club. These are as follows:
- If you have 3 or 4 locations, add an additional $50,000 surety bond;
- If you have 5 or 6 locations, add an additional $100,000 surety bond;
- If you have 7 to 9 locations, add an additional $150,000 surety bond;
- If you have 10 or more locations, add an additional $200,000 surety bond.
New York Health Club Bond: The Purpose of this Surety Bond
The purpose of the New York health club bond is to protect the buyer – your customers — of the health club membership if the health club goes out of business before the end of the buyer’s contract; or, if the purchased contract is not able to be used within one year of purchase (as, for example, if a health club facility is under construction).
If you’ll notice, the New York health club bond is solely for the protection of your customers; it does not protect the health club at all, nor is it an insurance policy
The bond is a financial guarantee for existing and potential customers that a health club will be in full compliance with the terms of their contracts.
Should a claim ever be paid on a health club bond, it is the legal responsibility of the purchaser of the bond to reimburse the surety for all costs involved in paying the claim.
New York Health Club Bond: The Cost And Duration
The cost of the bond, known as the premium, will depend on the following factors:
- The amount of the health club you are required to purchase;
- An application, which we can accept over the phone (doing so allows us to address any questions);
- A credit check.
For larger sized health club bonds, you may be requested to provide business or personal financial information which makes the application process a little more involved and detailed.
Once the bond has been purchased, it is renews on an annual basis. Our agency will send a notice to you ahead of time advising you of the upcoming renewal date.
Should you need to adjust the bond amount upon renewal, AmeriPro Surety Bonds will facilitate this as well.
About AmeriPro Surety Bonds
AmeriPro Surety Bonds is a surety bonds-only agency which provides all types of surety bonds throughout New York state.
Our goals as an agency are to provide topnotch, friendly, and efficient surety bond services for all of our customers.
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