Utah Surety Bonds

Surety Bond Requirements in UT

The state of Utah requires certain businesses and professionals to post a surety bond to protect consumers.

Alongside bonds required by the state, some cities and counties in Utah require bonds as well. Many of these local bonds involve excavation and site improvement work. Salt Lake City, for example, requires a “City Work in the Public Way" surety bond.

To make sure you are in compliance with Utah bonding regulations, talk to one of our specialists today.  We offer policies for several UT businesses, including:

  • Appraisal management companies
  • Collection agencies
  • Contractors
  • Motor vehicle dealers
  • Third-party administrators

Get Your Utah Surety Bond


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

Appraisal Management Company (AMC) Bond

You must post a $25,000 bond to the UT Commerce Department’s Division of Real Estate if you wish to be licensed as an appraisal management company (AMC). Its purpose is to allow your clients to be compensated if they are harmed by unlawful conduct by your business. The annual premium for an AMC bond in Utah starts at just $250.

Collection Agency Surety Bond

Collection agencies must post a $10,000 surety bond to the Utah Commerce Department along with your license application. The cost for your UT collection agency bond is just $100.

If a debt collector fails to report and pay collections to a client, or otherwise violates the terms of the bond agreement, money from the bond can be used to compensate the injured party. The agency must then repay that amount to their surety company.

Contractor License Bond

Contractors working in Utah must post a surety bond to Utah Division of Occupational and Professional Licensing. The amount of the bond varies depending on what kind of contracting business you operate:

  • General contractor – $50,000 bond
  • Residential contractors and small commercial contractors – $25,000 bond
  • Other contractor types – $15,000 bond

Specialty contractors in many trades fall into the $15,000 bond category. Whichever bond you choose, your cost will be only a small percentage of the bond coverage amount listed above, and it will vary depending on your credit rating and business finances.

Motor Vehicle Dealer Surety Bond

Utah licenses a number of different motor vehicle–related businesses, some of which require surety bonds. Here are a few of the automotive business categories for which the Motor Vehicle Enforcement Division of Utah’s State Tax Commission requires you to be bonded:

  • New or Used Motor Vehicle Dealer – $75,000
  • New or used motorcycle/ATV/trailer dealer – $10,000
  • Body Shop – $20,000
  • Crusher – $10,000

Surety bonds serve to shield consumers, the state, and other companies with which you do business from financial loss resulting from unethical or illegal practices by your company. Your premium will vary with the bond size and your credit rating.

Third Party Administrator (TPA) Bond

To obtain a license to act as a third-party administrator, you must provide a surety bond to the Utah Insurance Department. The amount of this bond varies between $5,000 to $500,000 and is tied to the size of your business.

A TPA bond must have a coverage amount equaling no less than 10% of the total funds handled by the administrator, with a minimum bond requirement of $5,000. Utah’s maximum bond requirement for third-party administrators is set at $500,000.

TPAs provide operational services like claims processing, retirement plan administration, and employee benefits management under contract to other companies. The bond protects the clients of the third party administrator. Should financial losses occur due to unethical or unlawful handling of assets, the injured party can be compensated from the bond, which must then be paid back to the surety.

Utah Surety Bond Costs
Bond Name Coverage Amount Cost
(Annual Premium)
Regulatory Authority
Appraisal Management Company Bond $25,000 $250* Utah Division of Real Estate
Collection Agency Bond $10,000 $100 Utah Division of Corporations and Commercial Code
Contractor License Bond $15,000/$25,000/$50,000 Varies* Utah Division of Occupational and Professional Licensing
Motor Vehicle Dealer Bond $10,000/$20,000/$75,000 $120/$240/$900 Utah Motor Vehicle Enforcement Division
Third Party Administrator Bond $5,000-$500,000 Varies* Utah Insurance Department

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

Our knowledge of Utah bond requirements enables us to provide accurate quotes quickly. For help through the process of selecting the surety bond for your business, talk to one of our experts today.

For faster service, call us at 855-215-2160
Monday to Friday, 6 a.m. to 5 p.m. (PT)