Colorado Surety Bonds

Surety Bond Requirements in CO

If you operate an appraisal management company (AMC) or collection agency in Colorado, you must be properly bonded in order to receive your business license. General contractors, mortgage brokers, motor vehicle dealers, and motor vehicle salespeople in the state must also post surety bonds to obtain licensure.

Bonds are required at state and local levels depending on your industry and where you're located within Colorado. For example, cities and counties require surety bonds for work on projects such as paving and sidewalk construction. The City of Denver requires a $50,000 bond for general contractors and for other types of construction professionals such as paving, sewer, structural, concrete, and water service contractors.

If you need a bond policy to comply with Colorado licensing regulations, we can help. NNA Surety Bonds has been providing affordable coverage to companies and individuals across the United States since 1957.

We offer the following surety bonds in the state of Colorado:

Appraisal Management Company (AMC) Bond

The Colorado Department of Regulatory Agencies Division of Real Estate requires appraisal management companies (AMCs) to post a $25,000 bond. This AMC surety bond is an agreement that says the principal (your company) will comply with all provisions of your state license and the law. It may be tapped up to the full $25,000 coverage amount to pay consumers or the state if damages result from failure to follow provisions of the bond agreement or state statutes. The annual cost for this bond is just $250.

Collection Agency Surety Bond

Collection agencies in CO must post a surety bond between $12,000 and $20,000 to the Colorado Department of Law along with their license application. The liability amount of the bond is determined by the DOL based on your agency's annual collections. Your premium cost will vary with the size of the bond as well as with your credit score. Annual premiums start as low as 1% of the full bondamount.

Contractor's License Bond

General contractors and most other kinds of contractors in Colorado are licensed at the city or county level rather than by the state.

For example, a city municipal contractor's license bond is set at $20,000 by the city of Arvada. In Denver, a $50,000 bond is required of city and county general contractors, as well as paving and sewer contractors. In Colorado Springs, the coverage amount needed for a city concrete contractor license bond is $5,000.

We suggest that you speak with one of our bonding experts to determine which type of CO contractor license bond you need.

Mortgage Originator Surety Bond

In Colorado, individually licensed mortgage brokers and mortgage loan originators are required to post a $25,000 surety bond with the Colorado Division of Real Estate. Groups with more than one but fewer than 20 licensees must post a $100,000 bond, and groups with 20 or more must post a $200,000 bond.

This bonding is required by most states as part of a general trend toward regulating the brokering industry after the 2008 financial crisis. Brokers who approve people for larger loans than they can handle, charge hidden fees, or fail to disclose information as required by law may encounter a bond claim.

For a $25,000 individual bond, your annual premium can be as low as $188 if you have a clean credit history.  

The $100,000 company bond for mortgage originators is available for $750 per year, subject to qualification.

The $200,000 company bond for mortgage originators is available for $1,500 per year, subject to qualification.

Motor Vehicle Dealer Bond

New and used motor vehicle dealers must post a $50,000 surety bond to the Colorado Department of Revenue. Its purpose is to provide immediate payment of damages if claims of dealer fraud or other malfeasance are upheld. Any such payment by the surety must be repaid by the principal (you, the dealer).

An auto dealer bond is required of the following dealer types in Colorado:

  • Motor vehicle dealer
  • Used motor vehicle dealer
  • Powersports vehicle dealer
  • Used powersports vehicle dealer
  • Wholesaler
  • Wholesale motor vehicle auction dealer

Your annual cost for this bond coverage could be as low as $450 with a strong credit score.

Motor Vehicle Salesperson Surety Bond

This $15,000 motor vehicle salesperson bond must be filed with the Colorado Department of Revenue's Auto Industry Division by anyone selling motor vehicles in the state. This bond is required if you sell cars, trucks, motorcycles, or powersports vehicles. The premium for applicants with good credit starts at only $90 per year.

Colorado Surety Bond Costs
Bond Name Coverage Amount Cost
(Annual Premium)
Regulatory Authority
Appraisal Management Company (AMC) Bond $25,000 $250 CO Dept. of Regulatory Agencies, Division of Real Estate
Collection Agency Bond $12,000-$20,000 Varies* State of Colorado Department of Law
Contractor's License Bond Varies Varies* Cities and counties
Mortgage Originator Bond $25,000/$100,000/$200,000 $188/$750/$1,500* CO Dept. of Regulatory Agencies, Division of Real Estate
Motor Vehicle Dealer Bond $50,000 $450* CO Dept. of Revenue - Auto Industry Division
Motor Vehicle Salesperson Bond $15,000 $90* CO Dept. of Revenue - Auto Industry Division

* Cost can vary depending on the bond amount required and your credit rating

Get Your Colorado Surety Bond

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Our knowledge of bond requirements in Colorado allows us to provide accurate quotes quickly. For guidance through the process of selecting surety bonds for your business license, talk to one of our experts today.

For faster service, call us at 855-215-2160
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Providing Bonds and Insurance Since 1957