The state of New York requires long-term care facilities and nursing homes that accept and manage resident funds to file a surety bond. Residents of facilities such as these are vulnerable to improper use of trust fund finances, but this surety bond guarantees that the principal (care facility) protects and manages monies in the trust ethically and in compliance with all regulations in Section 415.26 of the New York Codes, Rules and Regulations. If a harmed party files a valid claim against the bond, the surety will pay out up to the penal sum of the bond to resolve the claim. The principal is then required to reimburse the surety for all monies paid out, including any attorney fees incurred.
The amount for this bond varies and is equal to or greater than the total dollar amount of resident funds that the facility manages. The New York State Department of Health (DOH) is the regulatory body that handles licensing for care facilities, and it is recommended you contact the DOH with specific questions regarding licensing and for the bond amount you will need prior to bonding.
Pacific Surety offers industry low rates and can obtain approvals for almost all credit situations. Once our simple application has been completed, we can have pricing to you within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.
Surety Bond Name
Patient Trust Surety Bonds – New York
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