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Colorado Marijuana Surety Bonds for Dispensaries

Colorado is well known for its support of both the medical and recreational marijuana industries. In fact, the state’s marijuana industry earned Colorado a marijuana tax revenue of $135 million in 2015. However, that doesn’t mean that the laws for Colorado marijuana dispensaries aren’t strictly enforced! If you’re currently operating, or planning on opening a Colorado marijuana dispensary, it’s essential that you stay up to date on all marijuana laws in Colorado. One of the most important steps in ensuring that your business is operating legally is to ensure that you have the right surety bond in place to sell marijuana in Colorado. Read on to find out how you can secure an affordable bond to keep your business compliant with all Colorado marijuana laws!

What is a Colorado marijuana surety bond?

A surety bond is sometimes compared to insurance, although they work in a very different way. People confuse bonds for insurance as they provide a form of financial protection for one of the parties named in the surety bond contract. Bonds for Colorado marijuana dispensaries are designed to protect the local government from financial loss should the business fail to follow regulations or pay their taxes. In the event of a surety bond claim, the bond will cover the costs initially but the Colorado marijuana business will then be required to repay the bonding company. There are three parties involved in a surety bond contract:

• The principal: the business owner who is purchasing the bond
• The obligee: the party requiring the bond be purchased
• The surety: the surety provider who underwrites and backs the bond

Who needs a surety bond to sell marijuana in Colorado?

Up until recently all businesses working with marijuana in Colorado were required to obtain a number of bonds to operate in the state. However, the marijuana laws in Colorado were recently updated and now bonds are no longer required at state level, but many local governments still require them. What does this mean for your business? Put simply, it means that your bonding requirements will depend on the location of your Colorado marijuana dispensary. The ordinances and laws in place in your county and city will outline what bonds you need to run a business in the area. The bond amounts generally fall between $5,000 and $25,000 and are in operation in Antonito, Aurora, Commerce City, Denver, Dillon, Englewood, Federal Heights, Lafayette, and San Luis. Speak to a bonding agent to confirm the exact bonding requirements for your business’ location.

How To Get A Surety Bond In Colorado

Securing a marijuana dispensary bond in Colorado can actually be a difficult process unless you work with a bond company that’s experienced with working with businesses in the marijuana industry. Viking Bond Service can help you secure the right bond using our quick and easy application process. Simply fill in the application and business finances to get a quote. Once approved and you’ve paid the premium in full your bond will be issued!

Ensure Your Colorado Marijuana Business is Compliant!

Viking bond Service can help you find the right bond at the best price. Request a quote today by filling in our online application. If you have any questions about your bond options please call (888) 278-7389, our licensed agents are here to help!