Colorado Medical Marijuana Surety Bonds

Who needs a Colorado Medical Marijuana Surety Bond?

Medical Marijuana Surety Bonds, also known as Cannabis Bonds, are required by local municipalities in Colorado which have legalized the cultivation and use of medicinal cannabis. One must obtain this surety bond before being able to legally cultivate marijuana for medical use or operate a dispensary in Colorado.

What is the purpose of a Colorado Medical Marijuana Surety Bond?

Depending on the specific area and its current marijuana legislation, these surety bonds can range in type and scope. Many ensure that all applicable taxes and fees associated with the operation are met in a satisfactory manner, while others can address specific matters such as the THC content of the plant and its associated products. Colorado Medical Marijuana Surety Bonds ensure that the associated growers and retailers adhere to all applicable laws and regulations.

How do Medical Marijuana Surety Bonds work in Colorado?

Medical Marijuana Surety Bonds provide compensation to anyone who suffers damages due to the misconduct committed by the licensed cannabis business (principal). If a harmed party files a claim against the bond and it is found to be valid, the surety company will pay out up to the penal sum of the bond to resolve the claim. Any monies paid out by the surety, including attorney’s fees, must be reimbursed by the principal.

What is the bond amount for a Colorado Medical Marijuana Surety Bond?

Amounts for Colorado Medical Marijuana Surety Bonds vary and are set by the local rules and statutes regulating the industry. Therefore, bond amounts and requirements will fluctuate from bond to bond. Please contact us with specific questions, and our knowledgeable underwriting staff will assist you.

Which cities in Colorado require Medical Marijuana Surety Bonds?

Pacific Surety proudly offers Colorado Medical Marijuana Surety Bonds in the following cities:

If you do not see your city listed, please contact us and our knowledgeable underwriters will assist you.

How much does a Colorado Medical Marijuana Surety Bond cost?

Pricing for Colorado Medical Marijuana Surety Bonds will differ from applicant to applicant. An underwriter will review your application, and your premium will be based on a number of different factors including the following:

Municipality requiring the bond
Type/Scope of the bond
Amount of the bond
Personal credit of the applicant

Individuals with good credit can expect to pay between 1%-5% of the bond amount. Qualified applicants could pay as little as $100 annually for a $10,000 Colorado Medical Marijuana Bond. To find out how much your Colorado Medical Marijuana Bond is going to cost, please complete our online application for your free, no obligation price quote.

Can I get a Colorado Medical Marijuana Surety Bond with bad credit?

Pacific Surety offers a wide range of approvals, regardless of credit, for Colorado Medical Marijuana Bonds. With our strong surety relationships, we have the ability to approve 99% of applicants, regardless of how bad their credit is. Our knowledgeable underwriting staff will work with you to ensure you receive the lowest possible pricing for your bond. Applicants with substandard credit can expect to pay 5%-10% of the bond amount in premium. To see what rate you will qualify for, please complete our online application for your free, no obligation price quote.

How do I get a quote for a Colorado Medical Marijuana Surety Bond?

The first step is to complete our quick online application for your free, no obligation bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing. If you prefer to speak with our knowledgeable staff, please call 1-866-722-7873 and one of our Underwriters will assist you in applying for your bond.

After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.

How do I get licensed to distribute marijuana in Colorado?

The following are steps to getting issued a medical marijuana license in Colorado. License requirements vary for each specific city based on local laws and regulations. Please consult your local authority for more information.

Complete application with all associated forms
Obtain a medical marijuana surety bond in the specified amount.
Pay all required licensing fees