Colorado Health Club Bond |
AmeriPro Surety Bonds | 844-589-9732
Health Clubs – Colorado
The Colorado Attorney General’s Office, the obligee for the health club bond, has a page especially designated for information about the surety requirement for health club licensees.
AmeriPro Surety Bonds provides you with the surety bond required for filing with the Attorney General.
Health Club Surety Bond: Amount Required and Qualifying
The Colorado health club bond is a $100,000 surety bond required of each location of a health club facility. (See Colorado Revised Statutes Title 6 Consumer and Commercial Affairs § 6-1-704).
Qualifying is by means of a standard surety bond application, the amount required, and a business or personal credit score.
For health clubs bonds which are more greater than $100,000, you may also be asked to provide a financial statement.
The financial statement, along with the application, is used as part of the underwriting process to determine qualifying for this bond.
The Premium and Prepayment Options
Using the $100,000 surety bond amount, an applicant for the Colorado health club bond may pay between $1000-$1500 a year.
The term of the bond, when issued, is for one year.
In some cases, prepayment of the bond premium may be an option. Prepayment allows you a savings over year to year renewal of this surety bond premium.
As an example, using a $100,000 health club bond, with a $1000 annual premium, prepayment options may be the following:
- Prepayment for 2 years, at $1800;
- Prepayment for 3 years, at $2600.
The Purpose Behind Your Surety Bond Requirement
As stated statutorily, the Colorado health club bond is for the benefit of any of your customers – “consumers” – who are financially harmed by the closure of your health club facility before the end of their membership contract.
The surety bond, therefore, is strictly for the protection of the consumer and the state of Colorado.
As principal for this surety bond, you are responsible for all costs and fees associated with any claims paid by the surety. However, the aggregate total of such liability, excluding attorney fees and costs, will not exceed the sum total of your surety bond.
AmeriPro Surety Bonds is a surety bonds-only agency which provides license and permit, court, and fiduciary bonds throughout Colorado.
Our agency also provides surety bonding nationwide.
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