Colorado Unemployment Bond
Overview
Colorado employers who self-insure their unemployment obligations must protect the state against potential default — and that is exactly what the Colorado Unemployment Bond does. It guarantees that if a self-insured employer fails to pay unemployment benefits owed to former workers, the bond steps in to cover those obligations. Colorado's Department of Labor and Employment requires this bond before approving self-insured status, making it a prerequisite to operating outside the standard unemployment insurance fund.
Who Needs This Bond?
Employers seeking self-insured status under Colorado's unemployment insurance program need this bond. Instead of contributing to the state's unemployment trust fund, a self-insured employer pays benefits directly — and this bond is the state's guarantee that those payments will actually be made. Companies that meet the financial thresholds to qualify as self-insurers must post this bond before the Colorado Department of Labor and Employment will approve their self-insured designation.
What is this Bond For?
This bond protects Colorado workers and the state's unemployment system from financial loss if a self-insured employer fails to pay unemployment benefits it is legally required to pay. It holds the employer accountable to Colorado's Department of Labor and Employment, which acts as the obligee. If the employer defaults on benefit payments, the bond provides a financial backstop so that eligible workers still receive the unemployment compensation they are owed.
When is it Required?
Approval of self-insured employer status by the Colorado Department of Labor and Employment is the moment this bond becomes mandatory. Before the state will authorize a company to pay unemployment benefits directly rather than through the standard insurance fund, proof of this bond must be on file. The bond must remain in force for as long as the employer maintains self-insured status.
Where Does it Apply?
This bond is a statewide Colorado requirement and applies wherever the employer has workers covered under Colorado's unemployment insurance program. It is issued to satisfy the Colorado Department of Labor and Employment — not any local or county authority. Any employer operating in Colorado under a self-insured unemployment designation is subject to this requirement.
How to Buy Online
Click 'Buy This Bond Online' on this page and the secure surety portal will open in a new tab, guiding you through a fast, fully online application. Have your business information ready and complete the steps at your own pace — no agent callback required. Once approved, your bond documents are delivered digitally so you can submit them to the Colorado Department of Labor and Employment right away.
Why Bond Titan?
Bond Titan is powered by The Southern Agency and built for business owners who need a bond now, not after a week of back-and-forth with an agent. Our nationwide catalog includes Colorado-specific bonds like this one, ready for purchase online around the clock. Fast, direct, and paperless — that is how Bond Titan works.