Navigating General Liability Insurance for Contractors in Colorado
For contractors in Colorado, having the right insurance is crucial for protecting your business. General liability insurance should be the foundation of your coverage, shielding you from common risks like property damage and bodily injury claims. This guide will explore general liability for Colorado contractors – from state requirements to costs to tips for choosing the best policy.
What is General Liability Insurance?
General liability insurance covers expenses if you’re held legally liable for bodily injury, damage to someone else’s property, personal injury, medical payments or damage related to your advertising For example, if a client trips over your tools at a worksite and gets injured, general liability insurance can pay for their medical bills and compensate them for lost wages.
This coverage protects contractors against the most frequent and costly claims. It also satisfies requirements in commercial leases and contracts. Limits usually start at $1 million and can go up to $5 million or more.
Why Colorado Contractors Need General Liability
In Colorado, general liability insurance is crucial for protecting contracting businesses from the following scenarios:
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A roofer accidentally drops shingles on a customer’s car, denting it
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Workers remodeling a kitchen cause water damage to the hardwood floors
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A botched patio installation results in injury to the homeowner
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An electrician improperly wires a light fixture, starting an electrical fire
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A plumbing leak floods a client’s basement due to pipe work errors
Having adequate general liability limits helps cover the expenses from claims like these – from legal defense fees to medical bills to repair or replacement costs. Without it, you’d be paying these costs out of pocket, which could bankrupt your small contracting business.
What Does General Liability Insurance Cost in Colorado?
Costs vary based on your trade, location, years in business and other factors. According to 2021 data from Insureon, here are median annual general liability premiums for contractors in Colorado:
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General contractors: $1,250
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Electricians: $649
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Plumbers: $649
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HVAC contractors: $649
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Home builders: $1,164
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Roofers: $2,053
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Painters: $649
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Landscapers: $649
Compared to national medians, general liability premiums for contractors tend to be a little higher in Colorado. But they’re still very affordable, especially considering the vital protection this coverage provides.
How To Get the Best Policy in Colorado
Follow these tips when shopping for general liability insurance for your Colorado contracting business:
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Work with an agent or broker who understands your trade – they can recommend suitable coverage limits and options.
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Make sure the insurance company is licensed to operate in Colorado.
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Look for a carrier with strong financial ratings from AM Best, Standard & Poor’s or Moody’s.
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Ask about exclusions and limitations to ensure your business risks are covered.
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Inquire about additional insured status for clients that require it.
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Choose appropriate limits to cover worst-case scenarios. $1 million per occurrence / $2 million aggregate is usually the minimum for contractors.
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Add supplemental coverage like completed operations for protection after you complete a project.
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Bundle general liability with other policies to save money.
How to Get Quotes for General Liability Insurance in Colorado
The fastest way to compare quotes is through an online insurance marketplace like Insureon. You simply answer a few questions about your business and you’ll receive quotes from top national and regional insurance carriers all in one place.
Benefits of using an online marketplace include:
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Quotes are customized based on your unique risks.
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You can compare quotes side-by-side to find the best fit.
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There’s no obligation to purchase a policy.
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You save time compared to contacting carriers individually.
For a contracting business, you’ll also want to consider business owner’s policies (BOPs) which package general liability with property coverage and other common policies contractors need.
Protect Your Contracting Business in Colorado
No matter what type of contractor you are – general contractor, electrician, plumber, roofer, etc. – fitting general liability insurance into your budget is crucial. This coverage can make or break your business in the event of a large claim. Partner with a reputable insurance provider to get adequate protection.
General LiabilityProtection for the injuries, accidents and damage you causeGeneral liability insurance is included in most business insurance packages, including general contractor business, because it covers the risks that many business owners face every day. It’s not typically required by law, but some clients and agencies could ask you to have a certificate of insurance before they work with you.
general liability can help you pay for:Medical payments Property damage Legal fees and judgments
Business insurance designed for general contractor business in Colorado
NEXT makes business insurance unbelievably easy and affordable. Because our coverage is made just for general contractors, you can be sure that it was made with you in mind. Insurance coverage for general contractor business in Colorado often include:
- General liability
- Professional liability
- Workers’ compensation
- Tools & equipment
- Commercial property
Insurance for General Contractors in Colorado
FAQ
How much is general liability insurance in Colorado?
Is general liability insurance required by law in Colorado?
Is contractors protective liability the same as general liability?
Is workplace liability the same as general liability insurance?
How much does general contractor insurance cost in Colorado?
For example, the median annual cost of general liability insurance for general contractors in Colorado is $1,250, about the same as the national median. However, the median annual cost of workers’ compensation insurance for general contractors in Colorado is $6,077, which is much higher than the national median of $3,682.
Do general contractors need insurance in Colorado?
General contractors may need different types of insurance depending on the work they do and their client contracts. In Colorado, general contractors often buy these policies. General liability insurance is the foundation of a general contractor’s protection. It covers damage to client property, as well as client injuries and advertising injuries.
Who provides general liability insurance in Colorado?
He holds a MBA degree from UC Berkeley – Haas School of Business. Here are our recommendations of the top 6 providers of general liability insurance in Colorado: CoverWallet, Hiscox, the Hartford, Progressive, Huckleberry, and Next Insurance.
How much does general liability insurance cost in Colorado?
A general liability insurance policy costs an average of $42 per month or $504 per year in Colorado. We get a couple of quotes from some of the companies we recommended above and here are some quote samples: Get a quote on insurance from Next Insurance company for just $300 annually.