Colorado Surety Bonds

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Surety Bond Professionals is a family owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all of your Colorado surety bond needs.
Continue reading below to learn more about common Colorado bonding requirements, or use our online form to request a quote now.

Required Surety Bonds in Colorado

Typical Colorado bonds include (click on any for more info):

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Required Surety Bonds in Colorado

There are three broad categories of surety bonds in Colorado—construction and contractor bonds, license and permit bonds, and court bonds.

Colorado Construction & Contractor Bonds

Although there is no statewide licensing of contractors in Colorado, the state and certain municipalities require contract bonds for contractors involved in public works projects. The most commonly required contractor bonds are bid bonds and performance bonds, though others might also be required, such as payment bonds and maintenance bonds.

Colorado License Bonds

Obtaining a surety bond is a prerequisite for getting a license to operate in a certain professional capacity in Colorado, such as a mortgage broker or motor vehicle dealer. Although there is no state licensing for contractors, local contractor license and permit bonds are required in some municipalities such as Denver, Colorado Springs, Aurora, Englewood, and a few other locations.

Colorado Court Bonds

Colorado court bonds generally fall into one of two categories: appeal bonds and probate bonds. Appeal bonds are required from people appealing a court decision, especially when contested assets are involved. Probate bonds are required from people named to serve in a fiduciary capacity, such as the executor of an estate or guardian of a minor.

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You can count on our experienced surety professionals to answer any questions and get you a competitive rate on the Colorado contract bond, license bond, or court bond you need. Apply now!

Frequently Asked Questions

There are three parties to every surety bond agreement, which is a legally binding contract:

  • The “obligee” is the state or local agency requiring the surety bond.
  • The “principal” is the party required to purchase the bond.
  • The “surety” is the company underwriting and issuing the bond.
  • The obligee sets the required amount of the bond, which is the maximum amount that will be paid out on a claim. The obligee also spells out the conduct required of the principal in order to avoid claims against the surety bond.

Any party who suffers a financial loss because the principal has violated the terms of the bond has the right to file a claim against the bond. The principal is solely responsible for paying all valid claims.

However, the surety will often pay a claim and wait to be reimbursed by the principal. This ensures timely settlement of the claim and gives the principal some time to gather the necessary funds.

What the principal in a bond agreement actually pays for a surety bond is a small percentage of the required bond amount established by the obligee. That percentage, known as the premium rate, is determined by the surety company based on the applicant’s credit score and other indicators of the likelihood of claims being filed against the bond. Those with good credit can expect a rate of 1-3%. Those with poorer credit may pay a higher premium.
No claim against a bond will be paid until the surety company has investigated and determined that it is valid. After making payment to a claimant, the surety company will demand reimbursement from the principal.