How to Get a Surety Bond in Colorado: A Step-by-Step Guide

If you've been told you need a surety bond in Colorado, you may be wondering what type of bond you need, how much it will cost, and where to get one. The process is usually simpler when you work with an agency that specializes in surety bonds.

Reeder Insurance Agency has helped Colorado businesses and individuals with their surety bonding needs since 1963. Here's what to expect when you need to obtain a surety bond in Colorado.

What Is a Surety Bond?

A surety bond is an agreement involving three parties: the principal, the obligee, and the surety company.

The principal is the person or business required to obtain the bond. The obligee is the government agency, business, court, or other entity requiring it. The surety company provides the bond.

Unlike traditional insurance, a surety bond is generally designed to protect the party requiring the bond rather than the person or business purchasing it.

Step 1: Determine Which Surety Bond You Need

The first step is finding out exactly which bond is required. In many cases, a Colorado state agency, municipality, court, or contract will specify the type of bond and required bond amount.

There are many different types of surety bonds. Some commonly requested bonds include:

• Motor vehicle dealer bonds

• License and permit bonds

• Mortgage loan originator bonds

• Court/Probate bonds

• Contract Bonds: Bid bonds, Performance and payment bonds

• VA bonds

• Fidelity/Dishonesty bonds

• Public official bonds

• Conservator bonds

If you're unsure which bond you need, a surety bond specialist can help you identify the appropriate bond before you apply.

Step 2: Complete the Bond Application

Once the required bond has been identified, you'll provide the information needed for the surety company to evaluate and issue the bond.

The information required varies by bond. Some bonds have very simple applications, while others—particularly larger contract or higher-risk bonds—may require additional financial or business information.

Working with an agency that specializes in surety bonds can make this step easier because the agency can help determine what information is actually required for your particular bond.

Step 3: Receive Your Surety Bond Quote

The cost of a surety bond is not necessarily the same as the bond amount.

For example, if an agency requires a $50,000 bond, that does not necessarily mean you pay $50,000. Instead, you generally pay a premium for the bond.

Pricing depends on the type of bond and the surety company's underwriting requirements. Some bonds may be issued at a standard rate, while others may require a credit review or additional underwriting.

Step 4: Have Your Bond Issued

Once the application and any underwriting requirements are completed and the premium is paid, the bond can be issued.

Depending on the requirements, you may receive an electronic bond, a bond form to submit to the appropriate agency, or an original bond document.

Be sure to follow the instructions provided by the organization requiring your bond so it is filed correctly.

How Long Does It Take to Get a Surety Bond in Colorado?

It depends on the type of bond.

Many commercial surety bonds have relatively straightforward requirements, while contract bonds and certain specialized bonds can require additional underwriting.

Providing complete and accurate information when you apply can help prevent unnecessary delays.

Where Can I Get a Surety Bond in Colorado?

You don't necessarily need to find a bond company in the same city where the bond is required.

Reeder Insurance Agency serves businesses and individuals throughout Colorado, including Parker, Denver, Colorado Springs, Fort Collins and communities across the state.

As a family-owned agency specializing in surety bonds, we've been helping clients with their bonding needs since 1963.

Whether you need a motor vehicle dealer bond

, contractor bond, license and permit bond, mortgage loan originator bond, court or probate bond, or another type of commercial or contract surety bond, we can help you determine what you need and guide you through the process.

Need Help With a Colorado Surety Bond?

If you've been told you need a bond but aren't sure where to start, contact Reeder Insurance Agency. We'll help you determine the bond you need and explain the next steps.

Call Reeder Insurance Agency at 720-883-1770 or visit our Bond Services page to learn more about the surety bonds we provide throughout Colorado.