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Professional Liability Insurance in Colorado

You can save up to 25% in discounts.*

Business mistakes and accusations of negligence can be costly without the right insurance. Professional liability insurance can help cover:

Business errors

Business errors

A client or customer accuses you of making a professional mistake that costs them money.

Claims of negligence

Claims of negligence

Someone claims your inaction or wrongdoing caused a financial loss or personal harm.

Inaccuracy

Inaccuracy

Someone accuses you of misrepresenting information with your services.

Legal defense costs

Legal defense costs

You need to hire a lawyer to defend your business after you are accused of making a professional mistake.

What is Professional Liability insurance coverage?

Professional liability insurance can help protect Colorado small businesses if the owner or their employees are accused of negligence or make a professional error.

Professional liability insurance can help cover:

  • Professional mistakes that cost a client money or cause financial harm
  • Accusations of professional negligence such as wrongdoing or inaction
  • Misrepresentation of your business’s services

Whether you made an error or a customer claims that you did, professional liability insurance may help cover associated costs in many different situations. For example:

  • A Denver consultant makes a mistake in their paperwork which leads to a client making a terrible business decision, costing them $1,000,000. Professional liability insurance could help the consultant pay for legal costs if they need to defend their business.
  • A client claims that a real estate agent in Colorado Springs neglected to list unsafe levels of radon detected on the property in a seller disclosure. The agent may be able to submit a claim to help cover costs related to the error.

What is the difference between Professional Liability and E&O insurance?

Another name for professional liability insurance is errors and omissions insurance, or E&O.

These terms are commonly used interchangeably. They usually refer to the same coverage, but which term is used varies by industry. Errors and omissions or E&O is used primarily by insurance agents, real estate agents and property managers. There is also a contractor’s E&O option for construction professionals.

Most other professions call this insurance professional liability, including accountants, consultants, engineers, lawyers and medical professionals.

Is Professional Liability insurance required in Colorado?

Most businesses in Colorado are not legally required to have professional liability insurance. However, this coverage is sometimes necessary to adhere to professional standards in certain industries.

For example, businesses seeking Colorado state or local government contracts may need professional liability coverage. Another common example is malpractice insurance. If you’re a healthcare provider, your employer may require you to have this type of professional liability insurance.

Colorado businesses can benefit from having professional liability insurance even when it’s not required. Business owners often choose this coverage for these reasons:

Financial protection

With Colorado errors and omissions insurance, small businesses may be better protected financially if they make a professional mistake or face accusations of negligence.

Work contracts

Depending on your industry, your clients may require a certificate of insurance before agreeing to work with you, especially on high-value projects. Without E&O insurance, Colorado businesses may miss out on potential jobs.

Licenses and permits

You may need a valid professional liability insurance policy to obtain certain business licenses or certifications.

For example, to obtain or renew a real estate license in Colorado, you must have real estate E&O insurance. Colorado allows companies with more than one broker to be covered under an umbrella E&O policy. However, terminating employment with that firm may result in the need to purchase an individual policy.1

What types of businesses might need Professional Liability in Colorado?

Many types of businesses offering professional services, such as financial advisors, contractors and real estate, choose professional liability as professional liability as common insurance coverage.

However, businesses in other industries can also benefit from this type of Colorado business insurance.

Any business that runs the risk of making a mistake that could hurt someone financially or has the potential to face accusations of negligence or wrongdoing could benefit from professional liability or errors and omissions insurance. Colorado business owners may choose this coverage to help protect their reputations and resolve conflicts quickly.

For example, a client alleges that a mistake you made in your architectural designs led to the collapse of a stairwell and sues you for causing injuries. Professional liability insurance can help cover related costs to rectify the problem.

Likewise, suppose a client sues an accountant in Lakewood for using copyrighted material in their advertisements. In that case, professional liability insurance could help cover related expenses or the cost of defending against the accusation.

How much is Professional Liability insurance in Colorado?

Several factors influence the cost of Colorado E&O insurance or professional liability insurance, including:

  • The location where you do business
  • The number of employees you have
  • The type of work that you do
  • Your work experience
  • How high you set your policy limits
  • Your history of insurance claims

At NEXT Insurance, it’s easy to get affordable Colorado professional liability insurance or E&O insurance online in approximately 10 minutes. Monthly premiums for this business insurance coverage cost $45 or less for 52% of our U.S. customers

Learn more about professional liability insurance costs.

How NEXT Insurance helps Colorado businesses

NEXT provides professional liability insurance policies for Colorado small business owners and self-employed workers.

It only takes about 10 minutes to get a quote, review your coverage options, choose your policies and download a certificate of insurance.

Start an instant quote online today.

Our team of licensed insurance advisors is standing by to assist you if you have any questions along the way.

Other types of Colorado business insurance

Professional liability insurance is only one type of Colorado business insurance small businesses in the state may need. You could help protect your business from other common risks with additional coverage.
Many businesses in Colorado also consider these insurance options:
General Liability
General Liability insurance

Colorado general liability insurance can help protect your business from financial losses after a covered accident or mistake. If someone accuses your business of causing an injury or property damage, you may be able to submit a claim to cover the damages.



Workers Compensation
Workers’ Compensation insurance

Workers’ compensation insurance in Colorado is required for all businesses with at least one employee. This insurance can help cover lost wages and medical expenses if an employee has a work-related injury.



Commercial Auto
Commercial Auto insurance

Commercial auto insurance can help pay for costs such as medical expenses and property damage if you or one of your employees gets into an accident while driving a company vehicle.

In Colorado, all vehicles must have minimum auto insurance coverage of $25,000 per person, $50,000 per accident and $15,000 for property damage.2



Commercial Property
Commercial Property insurance

Commercial property insurance can help protect physical business assets such as inventory, furniture, commercial structures and equipment. With this insurance, Colorado business owners may be able to submit a claim after a covered event to pay for repairs or replacements.



Customer reviews

I am so excited
I am totally excited about my new insurance for my small business. I am happy that the price was in a range that I can afford, the terms were easy to understand and it was so simple to purchase my first policy. I look forward to doing business with you in the future.
Curzella J.
Easiest insurance purchase – EVER!
I was looking around trying to compare insurance and I am so lucky I found NEXT. I was able to compare levels of coverage, and all the options, without pressure from a salesperson or time limits. I was able to check out prices and it was more coverage for less than the “traditional” company I looked at.
Michael W.
Happy small business owner!
I needed liability insurance for my new small business brick & mortar location. I got the run around from another company, but NEXT provided a competitive insurance quote in a timely manner. I now have the insurance that I need and it was stress-free!
Nicole E.

Let’s find the coverage you need for your business

Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.

General Liability insurance
General Liability

Protect yourself from accidents that cause physical injury or damaged property.

Professional Liability or Error and Omissions Insurance
Professional Liability/E&O

Shield yourself from lawsuits that claim your work errors caused financial losses.

Workers' Compensation Insurance
Workers’ Compensation

Cover medical bills and lost wages if your employees have an accident at work.

Commercial Auto Insurance
Commercial Auto

Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.

Tools & Equipment Insurance
Tools & Equipment

Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.

Commercial Property Insurance
Commercial Property

Keep your building, inventory and equipment protected from fire or water damage.

Business Owner’s Policy Insurance
Business Owner’s Policy

Combine general liability and commercial property into one policy to protect your business.

Take a look at some helpful blog posts
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Errors and Omissions vs. Professional Liability vs. Malpractice: What's the Difference Anyway?

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Who Needs Professional Liability Insurance?
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* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
** The cost data presented here are based on NEXT active customers in the U.S. who purchased professional liability insurance over the previous 12 months. These data should not be considered a substitute for obtaining a quote specific to your business. These data were updated in July 2022.
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Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.