Surety Bonds
From securing contracts to meeting licensing requirements, surety bonds are a critical part of doing business in Colorado. Whether you’re a contractor, service provider, or small business owner, RPM Agency helps you get bonded quickly, affordably, and without the stress.
What Surety Bonds Protect
Contract Performance
Guarantees that a contractor will fulfill their obligations as outlined in a construction or service agreement—often required for public and private projects in Colorado.
License and Permit Compliance
Required by the state or local governments to ensure businesses follow regulations—common for contractors, auto dealers, and specialty trades.
Payment Protection
Ensures subcontractors, suppliers, and laborers are paid in full if the bonded party defaults or fails to meet obligations.
Court and Fiduciary Bonds
Required for legal processes involving guardianship, estate management, or judicial appeals.
Business Service Bonds
Protect clients against theft or dishonesty by employees performing services on-site—often used by janitorial, IT, or home care businesses.
Why Surety Bonds Matter in Colorado
They’re Often Legally Required
Many Colorado state licenses and local permits require bonding—especially in construction, automotive sales, and financial services.
They Build Trust with Clients
Being bonded shows that your business stands behind its work and obligations—something Colorado customers look for when hiring contractors or service pros.
They Open Doors to Bigger Projects
In order to bid on public contracts in Denver, Aurora, or anywhere in Colorado, performance and payment bonds are typically mandatory.
Colorado Surety Bond FAQs
What’s the difference between insurance and a surety bond?
Insurance protects the policyholder, while a surety bond protects the party requiring the bond (like a government agency or client). If you break a contract or fail to follow regulations, the surety company may pay the claim—but you’re ultimately responsible for reimbursing them. It’s a three-party agreement: you, the obligee, and the surety provider.
Who needs to be bonded in Colorado?
Common professions that require bonding in Colorado include contractors, electricians, plumbers, auto dealers, notaries, and financial service providers. If you’re bidding on government jobs or applying for a state license, you’ll likely need a specific type of surety bond. RPM can help you figure out exactly what’s required for your trade or project.
How much does a surety bond cost in Colorado?
Costs vary depending on the bond amount and your creditworthiness, business history, and industry type. Most small business bonds range from 1% to 10% of the total bond value. RPM works with multiple surety providers to help you secure the best rate based on your financial profile.
Can I get bonded with bad credit?
Yes. While rates may be slightly higher, many surety providers offer options for business owners with challenged credit. The key is working with an experienced agency that can match you with the right underwriting partner. RPM specializes in helping Colorado entrepreneurs of all backgrounds get bonded quickly.
How long does it take to get bonded?
Many bonds can be issued the same day, especially for standard license and permit requirements. More complex contract or court bonds may take a few business days for underwriting. RPM moves fast to help you meet deadlines and start projects on schedule.