Home to one of the country’s fastest growing urban populations, Colorado is a fantastic place to start a business.1 Professional services and trades alike can thrive in the Centennial State. And with numerous national parks and resorts, the tourism and adventure businesses are always a hit in Colorado.

No matter what your business is, before you can open your doors you need to know a thing or two about insurance. To run a business, there are certain insurance coverages you must have according to law. And to protect your investment in the future, there are some other business insurance options you should strongly consider.

What business insurance am I required to get in Colorado?

Colorado workers’ compensation insurance

In Colorado, you’re required to have workers’ compensation insurance if you have one or more employees. Workers’ compensation insurance exists to safeguard employees from financial impact related to injuries or illnesses sustained on the job. As a business owner, it also protects you from liability related to employee injuries. Workers’ compensation covers expenses and lost wages caused by the following:

  • Work-related accidents and injuries, such as repetitive stress injury, and resulting disability
  • Illnesses caused by or related to employment

Colorado auto liability insurance

If you drive a car, truck or van as part of your business operation, you’re required to have auto liability insurance or qualify as a self-insurer. Auto liability insurance can protect you and your business from the following types of third-party claims resulting from auto accidents involving your vehicle:

Bodily injury – If you get into an accident and the driver or a passenger of the other vehicle is injured, your auto bodily injury liability insurance covers the costs arising out of bodily injury, including medical expenses and death benefits.

Property damage – In the above scenario, it’s extremely likely the other car sustained some damage as well. Your auto policy’s Property Damage Liability coverage insures the cost to repair or replace the other party’s vehicle.

Also, depending on the use of your vehicle, the kind of vehicle or if your vehicle is registered or titled under your business name, you may need a commercial auto insurance policy to secure the appropriate coverage and vehicle registration, and avoid penalties.

What other types of business insurance are recommended for Colorado?

Colorado general liability insurance

General liability insurance (also known as CGL—for commercial general liability) is one of the most essential and effective ways to safeguard your business. It protects your business from the financial consequences resulting from liability related to third-party non-employee bodily injury or third party property damage that arises from your business operations. It also provides coverage for personal and advertising injury. Without general liability insurance coverage, you could be in financial trouble in the event of an unfortunate accident involving a customer or other third party.

Colorado professional liability insurance

If you provide professional services and your advice is alleged to have led to one of your clients suffering a financial loss, professional liability insurance can help. When a former customer or client claims—rightly or wrongly—that a mistake in your work led them to suffer a financial loss, professional liability insurance provides you with investigation and defense of the claim as well as making payments of any settlements or judgments.

Inland marine insurance

Inland marine insurance is designed to protect that vital equipment you use to make your business run smoothly. It protects your business by covering costs associated with accidentally damaged, lost or stolen equipment that is on the go with you. Whether you have an expensive tool collection, pricey construction materials, or other equipment you transport to a job site, having inland marine insurance is a no-brainer. At Thimble, we offer inland marine insurance, or Business Equipment Protection as we call it, with coverage for up to $5,000 worth of business property and equipment.

Commercial property insurance

Commercial property insurance protects your company’s building and the contents inside it from all kinds of risks of physical loss or damage, including theft, vandalism, fires and natural disasters such as floods, storms or earthquakes. Commercial property insurance is often included as part of a Business Owners’ Insurance Policy, or BOP.

Professions covered in Colorado

No matter what your business is, if you’re in Colorado, you’ll benefit from being insured. If a non-employee slips and falls due to a workplace hazard or you accidentally damage a client’s property while working in their home, the last thing you need is to pay out-of-pocket for damages. In Colorado, Thimble’s business insurance covers:

Cost of business insurance in Colorado

Median Colorado insurance costs

Coverage Period

By the hour

By the day

By the Week

By the month

Median Cost

$7.27

$13.42

$24.78

$67.59

Top cities for businesses in Colorado

  • Aspen
  • Boulder
  • Breckenridge
  • Colorado Springs
  • Denver
  • Fort Collins
  • Loveland
  • Pueblo
  • Steamboat Springs
  • Telluride

Bottom line: Colorado business insurance

Whether you’re in fast-growing Denver, a skyward mountain town or anywhere else in the Centennial State, starting your own business in Colorado is sure to be just as rewarding as it is adventurous. As you consider your business plan, take some time to determine what kinds of insurance coverage you’ll need. Being covered means you can focus on growing your company without worrying about expensive insurance claims.

Even if you’re just starting up, you can find Colorado business insurance coverage that’s right for you. Through Thimble, you can get a quote for your general liability insurance, professional liability insurance or Business Equipment Protection in less than a minute and if you decide to buy, you’ll be able to access your policy and Certificates of Insurance (COIs) in your inbox instantly.

Sources:

  1. United States Census Bureau: Fastest-Growing Cities Primarily in the South and West

Our editorial content is intended for informational purposes only and is not written by a licensed insurance agent. Terms and conditions for rate and coverage may vary by class of business and state.