What Is a Colorado Public Adjuster Bond?
Public adjusters in Colorado need to get licensed with the state Department of Regulatory Agencies. Among the licensing criteria, one of the most important ones is to post a public adjuster bond.
The goal of this surety bond is protect your customers and the state against potential illegal actions on your side. If you fail to abide by the law in your activities as a public adjuster in Colorado, you may end up with a bond claim.
Your Colorado surety bond bond works like a three-party contract. The principal is your public adjuster business. The obligee is the Department, which requires the bond. The surety is the third entity, providing the bond and backing your company.
Frequently Asked Questions
When do I have to obtain this bond?
All public adjusters in Colorado need to undergo a licensing process with the Division of Insurance at the Department of Regulatory Agencies. This requires obtaining a $20,000 surety bond. The bond is a guarantee that you will adhere to all applicable state laws. The license and bond have to be renewed every two years.
What is the cost of a Colorado public adjuster bond?
The required bond amount for Colorado public adjusters is $20,000. The surety bond cost that you have to cover is determined on the basis of this bond amount. It represents a small fraction of it, referred to as the bond premium. If your finances are stable, the typical bonding rates are between 1% and 5%.
A number of factors influence your bond price, such as personal credit score, business finances, liquidity, assets, and professional experience. Your surety determines the level of bonding risk that you pose on the basis of these criteria. The more solid your profile is, the smaller your bond premium is likely to be.
|Surety bond name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Colorado public adjuster bond||$20,000||$150-$300||$200-$500||$500-$1,000||$1,000-$2,000|
Can I get bonded with bad credit?
Lance Surety Bonds runs its Bad Credit Surety Bonds program for applicants with problematic finances. If you are struggling with a low credit score, tax liens, bankruptcies, or civil judgements, this program is designed for you.
The bad credit bond rates are between 5% and 10%. This is due to the increased bonding risk. But with us, you are still guaranteed a top bond price. As we work with a number of A-rated, T-listed surety companies, we can shop around and find the best bond option for your particular case.
How do I obtain my bond?
Need more details about the way bonding works? Don’t miss out our detailed How to Get Bonded page for a full overview.
We are here to help. If you have further questions, just reach us at (877) 514-5146. Our bonding experts will assist you with your application or queries.
What if I get a bond claim?
Unlike insurance, your Colorado public adjuster bond does not protect your business. Instead, it is a safety net for your customers against potential legal breaches on your side. You can get a claim against your surety bond if you engage in illegal activities.
A harmed party can demand a compensation up to the penal sum of your bond, which is $20,000 in this case. At first, your surety can step in to cover the costs for proven claims, so that the reimbursement for the claimant is quick and seamless. However, you have to repay it in full afterwards. Thus, bond claims can be financially harming. They can also prevent you from getting bonded in the future, so it’s best to avoid them.