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.

Among the most popular license bonds requested in Colorado are the auto dealer bond, as well as freight broker bonds.

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.

Start your surety bond application today! Why us?
  • The lowest possible rates
  • A 100% money-back guarantee
  • Access to specialty programs, not available to small agencies

Contract Bonds

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

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

* This form is for a rough estimate only.

Tell us where to send you your FREE estimate

SEND ME MY ESTIMATE!

We'll never share your information with third parties

Back to Surety Bond Cost Calculator

Thank you for your request!

The ballpark estimate on your premium is: $100 - $167

We've send a copy of your estimate on your email as well.

Want an exact quote? Simply fill out our online application It's fast and 100% free!

Get a free exact quote Get another estimate

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.

Not ready to apply? Then simply get a free no-obligations quote, so you can see our low prices!

Contract bond application

To apply for a contract surety bond, simply fill in the relevant application form and send the form to us. This is necessary because these bonds go through a different process before they are underwritten. 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.

Further Reading


About the author:
Todd Bryant
Todd Bryant is a graduate of Germantown Academy and the University of Pittsburgh College of Business Administration Honors College. He has been President of Bryant Surety Bonds, Inc., an A+ rated Business with the Better Business Bureau, since 2007. Licensed as a producer with the Department of Insurance, he has been published in the National Association of Surety Bond Producers newsletter and on numerous authoritative publications such as The Washington Post, Entrepreneur.com, Azcentral.com and many more.