Overview of Colorado Public Adjuster Bond Requirements
Applicants for a public adjuster license in Colorado must obtain a public adjuster bond as part of their application. This bond must be in an amount of $20,000.
The purpose of this bond is to guarantee that licensed insurance adjusters will comply with sections §10-2-417(2) of the Colorado Revised Statutes (C.R.S.) and 1-2-19 of the Colorado Insurance Regulation. In particular, it guarantees that licensees will conduct business fairly and honestly, and in compliance with the above regulations.
The bond is also intended to serve as protection for adjusters’ clients and to protect them from fraud and dishonesty, such as charging them fees that were not agreed upon in advance.
If an adjuster violates the conditions of the bond, and state laws, and thereby causes losses to their clients, the latter may file a claim against their bond to receive compensation. The compensation extended under a bond claim may be as high as the full amount of the surety bond.
Never gotten bonded before? See our ‘What is a surety bond’ guide to learn all you need to know about how bonds work, and why businesses require a bond when getting licensed!
See the sections below for more information on the cost of this bond, what may give rise to a claim, and how to apply to get bonded in Colorado!
Call us at 866.450.3412 to speak to one of our bond experts if you have any further questions about this bond!
Colorado Public Adjuster Bond Cost
The Colorado public adjuster bond is in the amount of $20,000. To get bonded, you must pay a surety bond premium which is equal to a fraction of the full amount of the bond. The exact sum of that premium is determined by the surety when you apply for your bond.
Factors affecting your price
Sureties typically examine applicants’ credit score, as the primary factor that determines the bond cost, but may also examine applicant financial statements, assets and liquidity to get a fuller picture.
Applicants who have a credit score of 700 FICO or more are typically offered the lowest possible rates on their bonds. For these applicants, rates on this bond may be as low as .75%-1.5% of the total bond amount.
Want to get a quick estimate of your bond cost? Try our bond calculator or see the bond cost table below. To get a free and exact quote on your bond, simply complete our bond form!
Surety Bond Cost Calculator
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|Surety bond name||Surety bond amount||Credit Score|
|Above 700||Between 650-699||Between 600-649||Below 599|
|Colorado Public Adjuster Bond||$20,000||$150-$300||$200-$500||$500-$1,000||$1,000-$1,500|
Can I get bonded with bad credit?
If you have a low credit score, you don’t need to be worried about how you’ll get bonded!
The purpose of our Bad Credit Program is to enable those applicants who have low credit scores to get a surety bond that allows them to get licensed. Bond rates are higher under this program because sureties perceive a greater risk in issuing bonds for applicants with lower scores. Yet, bond rates are never final, and you can improve your rate year by year by improving your credit score.
See the program page to learn more about getting a bond with bad credit!
Claims Against Your Bond
Surety bonds are binding agreements and as such, they have conditions which cannot be violated without consequence. When the conditions of a bond are violated, parties that have suffered losses or damages due to such violation may file a claim against the bond to receive compensation.
The conditions of the Colorado public adjuster bond state that bonded adjusters need to comply with the provisions of any Colorado statutes that regulate adjusters.
In particular, the bond allows the Colorado Commissioner of Insurance to recover restitution against the bond for any person that sustains losses or damages due to an adjuster’s erroneous acts, conviction of fraud, failure to act, or conviction of unfair practices in the role of a public adjuster.
When a claim is made against the bond, the surety will extend the necessary compensation to claimants which may be as high as the full amount of the bond. After that, the bonded adjuster will be required to reimburse the surety in full, because the final liability for any claim always lies with the bonded party, and not with the surety.
For that reason, strictly complying with all conditions of a surety bond agreement, and avoiding violations is the best course of action!
Want to get a free quote on your bond and get started with your bond application? Complete our bond form, and we’ll get in touch with you shortly.
Along with your quote, we’ll also provide you with full details on how to finalize your application.
It may take up to two working days for your bond to be issued. After that, we will send it to you via mail and email.
Do you have any questions about this bond and the bonding conditions in Colorado? Call us at 866.450.3412!