Colorado Surety Bonds Overview
If you want to obtain a business license or permit in the state of Colorado, you may be asked to get a surety bond first. Similarly, if you are a contractor and want to participate in a bid or perform work on a public project, you may need to obtain a surety bond first.
Why do I need to get bonded?
Surety bonds are agreements between three parties:
- The bond obligee - the party that requests the bond
- The bond principal - the party that need to get bonded
- The bond company - the party that issues and backs the bond
The bond agreement guarantees that the bond principal will comply with the conditions of the agreement. For example, when a business obtains a bond, the bond usually requires them to comply with state laws and regulations. If the business violates this condition, causing losses or damages as a result, a claim can be filed against their bond by the bond obligee for compensation.
When a claim is filed against a bond, the surety company that has issued the bond will investigate the case and extend compensation to claimants if the claim is valid.
If you want to get a better understanding of how bonds work and why you need one, see our detailed 'What is a surety bond' guide!
If you know exactly what type of surety bond you require, you can look it up in the table below. Follow the applications link by clicking the ‘Apply’ button and proceed with submitting your documents. If you want to read more about Colorado surety bonds first, how much they cost and how you can get bonded, simply continue to the different sections below.
Find the Bond You Need
The table below contains a list of only the most popular surety bonds. If you can't find yours, fill out our online application and select "Not in the list".
|Contractor License (No P&P Language) Bond||Board of County Commissioners; El Paso County||Permit Compliance Bond (El Paso County, CO)||Apply Now|
|Contractor License Performance & Payment (Local) Bond||City of Trinidad||Contractor License Bond (City of Trinidad, CO)||Apply Now|
|Contractor License Performance & Payment (State) Bond||Dept of Local Affairs Div of Housing||Installer of Manufactured Homes Bond||Apply Now|
|Excess Weight, Other Highway & Street Permit Bond||El Paso County, CO Public Services Department||Right of Way Street Permit for Washo Circle Bond (||Apply Now|
|Collection Agency Bond||Collection Agency Board||Collection Agency||Apply Now|
|Debt Consolidators Bond||Collection Agency Board||Debt Management||Apply Now|
|Insurance Adjusters Bond||Colorado Division of Insurance||Public Adjusters Bond||Apply Now|
|Mortgage Broker (1st & 2nd Mortgages) Bond||Division of Real Estate||Mortgage Loan Originator (Individual)||Apply Now|
|Mortgage Broker (1st & 2nd Mortgages) Bond||Division of Real Estate||Mortgage Loan Originator||Apply Now|
|Mortgage Broker (1st & 2nd Mortgages) Bond||Division Of Real Estate||Mortgage Broker (1st & 2nd Mortgages)||Apply Now|
|Mortgage Lender/Banker (1st & 2nd Mort.) Bond||Adminstrator of Uniform Consumer Credit Code||Supervised Lender||Apply Now|
|Small Loan Companies Bond||Attorney General||Supervised Lender Bond||Apply Now|
|Defective Title Bond||Department of Motor Vehicles||Defective Title Bond||Apply Now|
|Auto & Mobile Home Dealers (New & Used) Bond||Department of Revenue - Auto Industry Division||Motor Vehicle Dealer||Apply Now|
|Auto & Mobile Home Dealers (Used Only, No New) Bond||Department of Revenue - Auto Industry Division||Motor Vehicle Dealer||Apply Now|
|Motor Vehicle (Non-Dealer, Not Listed) Bond||Dept of Revenue - Auto Industry Division||Motor Vehicle Buyer Agent||Apply Now|
|Motor Vehicle (Non-Dealer, Not Listed) Bond||Div. of Housing - Manufactured Home Registration||Home Sale Down Payment Bond||Apply Now|
|Detectives Bond||Department of Emergency Services and Public Protec||Private Detective and/or Security Service License||Apply Now|
|Professional Licenses (All Other) Bond||Dept. of Excise and Licenses||Merchant Guard Company||Apply Now|
|Professional Licenses (All Other) Bond||Division of Registrations / Office of Licensing||Hearing Aid Providers||Apply Now|
|Professional Licenses (All Other) Bond||Grand Junction City||For Purchasing of Gold||Apply Now|
|Professional Licenses (All Other) Bond||Public Utilites Commission||Motor Carrier||Apply Now|
|Professional Licenses (All Other) Bond||Department of Public Health and Environment||Waste Tire Hauler Bond||Apply Now|
|Schools (All) Bond||Division of Private Occupational Schools||COLORADO – BOND OF PRIVATE OCCUPATIONAL SCHOOLS||Apply Now|
|Schools (All) Bond||Department of Revenue||Third Party Testing-Examiner Bond||Apply Now|
|Schools (All) Bond||Division of Private Occupational School||Out of State Private Occupational School Agent Bon||Apply Now|
|Fuel Tax (All Others, Sellers & Users) Bond||Colorado Department of Revenue||Mileage & Fuel Tax||Apply Now|
|Fuel Tax (All Others, Sellers & Users) Bond||Colorado Department of Revenue||Fuel Distributors Bond||Apply Now|
|Sales, Use & Consumer Tax Bond||Department of Revenue||Medical Marijuana License||Apply Now|
|Sales, Use & Consumer Tax Bond||City and County of Denver||City & County of Denver Retail Marijuana License B||Apply Now|
|Sales, Use & Consumer Tax Bond||Dept of Revenue, Marijuana Enforcement Division||Retail Marijuana License Bond||Apply Now|
|Sales, Use & Consumer Tax Bond||State of Colorado, Department of Revenue||Retail Marijuana Excise Tax Bond||Apply Now|
|Sales, Use & Consumer Tax Bond||City & County of Denver||Medical Marijuana License Bond||Apply Now|
|Sales, Use & Consumer Tax Bond||City of Lafayette||(City of Lafayette, CO) Retail Marijuana License B||Apply Now|
|Sales, Use & Consumer Tax Bond||City of Aurora - Marijuana Enforcement Division||(City of Aurora, CO) Retail Marijuana Establishmen||Apply Now|
|Grain & Commodity (State License & Warehouse) Bond||COLORADO DEPT OF AGRICULTURE||Dealer and/or Commodity Handler Bond||Apply Now|
|Utility Deposit Bond||La Plata Electric Association||La Plata Electric Association Utility Payment Bond||Apply Now|
|Financial Guarantee (All Other) Bond||Hazardous Materials & Waste Management Division||Solid Waste Disposal Sites and Facilities Financia||Apply Now|
|Lottery Bond||Department of Revenue, Lottery Commission||Lottery/Lotto||Apply Now|
|Repossession Agent Bond||Colorado Attorney General||Repossessor||Apply Now|
|Appraisal Management||Colorado Division of Real Estate||Appraisal Management Bond||Apply Now|
Types of Surety Bonds in Colorado
If you require a surety bond, it will usually be one of the following three major types of bonds:
- License and permit bonds
- Contract bonds
- Court bonds
Read on for a more detailed information on these types of bonds.
License & Permit Bonds
License and permit bonds are required in practically every state in the country. However, not all states require the same types of license bonds, nor in the same amounts. These bonds are required for businesses in order to obtain their business licenses in the state of Colorado.
They serve to protect the public, the state and individual consumers who may suffer financial harm due to a business’s malpractice. These bonds also guarantee that businesses will comply with state regulations that apply to their particular business.
The bonding amounts (i.e. the penal sum) of license bonds may vary from that of similar bonds in other states. Bond amounts are either fixed on a state level, or are determined on a federal level. However, the bond amount is not the cost of your license bond. The cost is only a percentage of the total amount. Check the section on surety bond cost below for more information.
Contract bonds are often required by contractors on a project-by-project basis, in addition to their license bond. These bonds are almost always required of contractors when they bid to participate in public construction projects as well as when they perform on projects. Most private construction jobs in Colorado require contract bonds as well.
These serve as a guarantee that contractors will perform in accordance with a contract’s conditions and state regulations.
Court bonds are sometimes required of individuals in Colorado who want to appeal a judgement. If deemed necessary, a court will order appellants to obtain a supersedeas bond, a type of court bond. Fiduciaries or guardians may be required to obtain a fiduciary bond, another type of court bond, before they can perform their duties.
If you need any more information or help, you can always call one of our surety experts at (866) 450-3412.
How Much Does a Surety Bond Cost in Colorado?
The cost of your surety bond is based on the amount (or penal sum) of the bond that you need to obtain. The amount of a bond is the amount of coverage that it provides to its obligees if a claim is made against the bond. This is not the same as its cost, though.
How is the cost of my bond determined?
The cost that you will need to pay to obtain a bond is a fraction or percentage of its full amount. How high or low this percentage will be depends on various financial factors. The most important among these is personal credit score. When determining your premium, sureties take your credit score into account, as it is a reliable indicator of your financial strength and stability.
Other factors which sureties consider are:
- Your financial statements
- Your industry experience
- How long your business has existed
- Other financial factors
Those applicants who have a high credit score are typically offered a premium which is between 1%-4% of the total amount of their bond. The exact percentage varies on the type of bond you are applying for, as well as your status as an applicant.
Those applicants who have a low credit score can usually get bonded regardless. Due to the greater risk involved in bonding these applicants, rates under this program are higher - between 5%-15% of the total amount. Yet, by consistently improving your financials, you can get a better rate with every consecutive renewal of your bond.
Try our surety bond cost calculator below to get an estimate of the cost of your surety bond. If you want an exact quote on your bond, free of charge, simply follow the application link and submit your application.
You can also have a look at our surety bond cost page, which offers extensive information about how bond cost is determined.
Surety Bond Cost Calculator
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How to Get Bonded in Colorado
Getting bonded in Colorado is quite simple. All you need to do is fill in the relevant application form, and submit it through our secure application tool.
License bond application
Apply online here to get a license and permit bond. When submitting your application, you will have to include a number of details that are necessary to calculate your rate. Once you submit your application, you can expect to receive a reply with your free quote.
Contract bond application
To apply for a contract surety bond, simply fill in the relevant online application form. Once we review your application we will contact you with an entirely free quote on your contract bond.
You can also get in touch with us at (866)-450-3412 at any time if you should have further questions or need help. We look forward to providing you with assistance.