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Colorado Business Insurance

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Business insurance in Colorado

Colorado ranks among the 10 fastest-growing states over the past decade,1 and small businesses and self-employed workers account for 1.1 million of its jobs.2

While no two small companies in Colorado are exactly alike, almost all of them will need business insurance to protect their livelihoods in case of events such as:

  • Injuries involving the business
  • Property damage
  • Accusations of professional errors
  • Accidents that occur when driving for work

Next Insurance helps more than 1,000 types of small businesses and self-employed workers easily get the coverage they need online at an affordable price. We specialize in small business insurance, so we can easily help you find a customized insurance package that is right for you.

Continue reading to find out about the most important types of business insurance in Colorado or start a free instant quote to review options for your business.

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How Next can help you with business insurance in Colorado

We offer a quick and simple way for you to get business insurance quotes online, purchase coverage and share your certificate of insurance. The entire process typically takes just a few minutes.

Our team of licensed, U.S.-based advisors can help you if you have any questions. 

Start an instant quote today.

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Business insurance coverage and requirements in Colorado

If you operate a small business in Colorado, your insurance needs will depend on factors such as your company’s: 

  • Industry
  • Employee count
  • Risk factors. For example, a welding company runs a greater risk of damaging someone else’s property than an accountant.

General liability coverage, which protects your business if you are accused of injuring another person or damaging their property, is considered essential small business insurance in Colorado. Business owners with employees will also need workers’ compensation insurance to assist employees who get hurt on the job. 

If you or your workers drive company cars for business, commercial auto insurance helps pay for accident damages. Professional liability (or E&O) coverage helps cover lawsuit costs if someone accuses you of making a mistake, missing a deadline or not completing a job based on the terms of your contract.

Business insurance typically comes in a package with several different types of coverage. You can decide what to include based on the specific needs of your operations and our recommendations.

 

General Liability insurance 

General liability insurance in Colorado helps pay for damages or lawsuit costs if someone other than an employee accuses your business of causing an injury or property damage. Clients and commercial landlords often require this type of insurance before signing contracts with your company or renting your property.

For example, an employee at a window cleaning business in Denver accidentally breaks a large pane of glass at an office building. General liability insurance would help the cleaning company pay for the window repairs.

If the building owner decided to sue, general liability insurance helps cover the window cleaner’s court costs and attorney fees, along with damages if it is found liable.

Construction and cleaning companies can upgrade their coverage to include tools and equipment insurance. This type of insurance helps pay for repair or replacement costs if business gear if it is stolen, lost or damaged.

 

Workers’ Compensation insurance

Like most states, Colorado requires small businesses with employees to purchase workers’ comp coverage. 

Workers’ compensation insurance helps business owners and employees who are injured on the job cover medical bills and lost wages. It will also pay for some legal costs if an injured employee claims that your negligence caused the incident.

For instance, a worker at a three-person carpentry firm in Colorado Springs suffers an injury while repairing a home, requiring stitches and a three-week leave of absence. Workers’ comp coverage would assist with the employee’s medical bills and lost wages during recovery.

 

Professional Liability (E&O) insurance 

Professional liability coverage, also known as errors and omissions (E&O) insurance, helps cover defense costs if someone accuses you of making a professional mistake that causes financial losses.

If a client claims that you made a work error, failed to complete a project on time or didn’t fully deliver what you promised, professional liability insurance helps your business pay to defend itself in court and cover damages if you are held responsible.

For example, an apartment complex developer in Fort Collins alleges that an architect drew faulty building plans, which causes a delay in construction. The developer sues the architect for professional negligence and lost income. 

Professional liability insurance would help the architectural firm cover legal costs. Depending on policy limits, this coverage also pays for damages if a court holds the architects liable or they need to settle.

 

Commercial Auto insurance

Colorado state law requires commercial auto coverage from company-owned vehicles.

Generally speaking, personal automobile insurance won’t cover business-related accidents.

Costs depend on how many vehicles your business owns, how often you’re on the road, and your history of previous insurance claims.

A landscaping company employee driving a company truck hits another car in the Eisenhower Tunnel on Interstate 70, causing several thousand dollars worth of damage. Commercial auto insurance would help the landscaping business pay for repairs to both vehicles and medical bills if the accident caused injuries.

Businesses that occasionally ask employees to drive their own cars or rented vehicles should consider adding hired and non-owned auto coverage.

 

How much does business insurance in Colorado cost?

Our customers in Colorado spend a median of $50 each month for business insurance.

However, each business is different, and the amount you pay for will depend on a variety of factors, including:

How much coverage is in your insurance package. If you only include one type of coverage in your insurance package or basic limits, your costs will be less, but you might have to pay more out of pocket after an accident.

Your industry. The amount of risk your business faces each day will impact your insurance costs. Colorado-based construction companies, which are more likely to experience an injury or property damage, pay about $59 per month for insurance. Owners of beauty salons, where customers are less likely to get hurt, pay $17 each month. 

The number of employees at your business. Some coverage, such as workers’ comp, uses payroll as a factor for pricing. It’s important to provide accurate estimates when you apply for insurance so your quote is correct.

Typically, businesses with more risks pay more per month. 

Start a quote with Next Insurance today to explore coverage options for your business in just a few minutes.

 

More resources for Colorado small businesses and self-employed workers

Sources: 

  1. U.S. Census Bureau statistics
  2. Colorado Office of Economic Development and International Trade