General Liability Insurance for Colorado General Contractors: A Must-Have
Part of our guide to general contractors insurance in Colorado.
General contractors in Colorado understand the importance of protecting their business from unforeseen circumstances. General Liability Insurance is the foundational policy that covers third-party bodily injury, property damage, and advertising injury claims. You need this coverage to ensure your business is not held liable for damages or injuries caused to others. In Colorado, the risk environment is unique, with damaging hailstorms, heavy snowfall, and wildfire risks, making General Liability Insurance a necessity. You cannot afford to go without it, as it can lead to financial ruin. Nearly every commercial client, real estate developer, and lender requires general contractors to carry at least $1 million in general liability and workers' compensation insurance as a condition of signing any construction contract.
General Liability cost for general contractors in Colorado
Illustrative monthly general liability estimate for a small general contractor operation in Colorado. Actual pricing depends on revenue, payroll, coverage limits, claims history, and carrier. Get a personalized quote to see your real price.
Partner offer · General Contractors in Colorado
Get general liability for your general contractor business in Colorado
Flexible coverage built for general contractors in Colorado — by the job, month, or year. Get a fast online quote with no long-term commitment.
Sponsored · Coverage for general contractors
What General Liability Covers for General Contractors in Colorado
General Liability Insurance for general contractors in Colorado covers third-party bodily injury, property damage, and advertising injury claims. This means that if a client or visitor is injured on your job site, or if you accidentally damage their property, your General Liability Insurance will pay for the damages. However, it does not cover workers' compensation claims, which are covered by a separate policy. For example, if you are working on a construction site in Denver and a passer-by is injured by a falling object, your General Liability Insurance will cover the medical expenses. On the other hand, if one of your employees is injured on the job, your workers' compensation insurance will cover their medical expenses. General Liability Insurance also covers advertising injury claims, such as slander or libel. For instance, if you accidentally publish a false statement about a competitor in a marketing campaign, your General Liability Insurance will cover the damages. You need to understand what is covered and what is not to ensure you have the right protection for your business.
Do General Contractors in Colorado Need General Liability?
General contractors in Colorado are required to carry General Liability Insurance by nearly every commercial client, real estate developer, and lender. This is because General Liability Insurance protects these clients from potential damages or injuries caused by your business. Without General Liability Insurance, you may not be able to sign construction contracts with these clients, which can limit your business opportunities. Furthermore, General Liability Insurance can help you avoid financial ruin in case of unforeseen circumstances. For example, if you are working on a construction site in Colorado Springs and a client is injured due to your negligence, your General Liability Insurance will cover the damages. If you do not have General Liability Insurance, you may be held personally liable for the damages, which can lead to financial ruin. You need to have General Liability Insurance to protect your business and ensure you can continue to operate in Colorado. In addition, General Liability Insurance can also help you protect your reputation and avoid costly lawsuits. You should not risk your business by going without General Liability Insurance, as it can have severe consequences.
A Real General Liability Claim a General Contractor Could Face
It was a routine job until a client slipped and fell on a construction site in Fort Collins. The client suffered a broken ankle and sued the general contractor for negligence. The general contractor's General Liability Insurance covered the medical expenses and legal fees, totaling $200,000. If the general contractor did not have General Liability Insurance, they would have been held personally liable for the damages, which could have led to financial ruin. The general contractor's General Liability Insurance policy had a limit of $1 million, which was sufficient to cover the damages. The insurance company also provided legal representation, which helped to reduce the settlement amount. The general contractor was able to continue operating their business without significant financial disruption. You should ensure you have the right coverage to protect your business from similar claims. In this case, the general contractor's General Liability Insurance policy saved them from a significant financial loss.
What General Liability Costs for General Contractors in Colorado
The cost of General Liability Insurance for general contractors in Colorado varies depending on several factors, including revenue, payroll, coverage limits, deductible, and claims history. On average, general contractors in Colorado can expect to pay $40-$110/month for General Liability Insurance. However, this cost can increase or decrease depending on your specific business needs and risk profile. For example, if you have a high-risk business with a history of claims, your premium may be higher. On the other hand, if you have a low-risk business with a good claims history, your premium may be lower. You can also lower your premium by increasing your deductible or reducing your coverage limits. However, you should ensure you have sufficient coverage to protect your business from unforeseen circumstances. In Colorado, the unique risk environment, including hailstorms and wildfires, may also increase the cost of General Liability Insurance. You should work with an insurance professional to determine the right coverage and cost for your business. They can help you navigate the complex insurance market and ensure you have the right protection for your business.
How to Get General Liability in Colorado
To get General Liability Insurance in Colorado, you should work with an insurance professional who understands the unique risks and requirements of general contractors in the state. They can help you determine the right coverage and cost for your business and ensure you have the necessary protection. You should also gather all necessary documents, including your business license, tax ID number, and financial statements, to apply for General Liability Insurance. Additionally, you should compare quotes from different insurance companies to ensure you get the best rate. In Colorado, you can find insurance professionals in cities like Denver, Colorado Springs, and Aurora who specialize in General Liability Insurance for general contractors. They can help you navigate the complex insurance market and ensure you have the right protection for your business. By bundling General Liability Insurance with your other core policies, such as workers' compensation and commercial auto insurance, you may be able to lower your total premium. You should get a quote today to ensure you have the right protection for your business and avoid financial ruin in case of unforeseen circumstances.
Frequently asked questions
Will my General Liability premium jump after one claim?＋
Yes. Your premium may increase after a claim. However, the amount of the increase will depend on the severity of the claim and your overall claims history. You should work with your insurance professional to understand how a claim may affect your premium and to find ways to mitigate the increase. For example, you may be able to increase your deductible or reduce your coverage limits to lower your premium. You should also ensure you have a good claims history to minimize the impact of a single claim on your premium.
Can I get a COI same-day for a client?＋
Yes. You can get a certificate of insurance (COI) same-day for a client. Most insurance companies can provide a COI within 24 hours, and some may even offer same-day service. You should work with your insurance professional to ensure you can get a COI quickly and easily. They can help you navigate the process and ensure you have the necessary documentation to provide to your clients. You should also ensure you understand the requirements for a COI in Colorado and that you have the necessary coverage to meet those requirements.
Does a sole proprietor need General Liability?＋
Yes. A sole proprietor needs General Liability Insurance to protect their business from unforeseen circumstances. As a sole proprietor, you are personally liable for the actions of your business, and General Liability Insurance can help protect your personal assets in case of a claim. You should work with an insurance professional to determine the right coverage and cost for your business, even if you are a sole proprietor. They can help you navigate the complex insurance market and ensure you have the necessary protection for your business.
What's not covered by General Liability?＋
General Liability Insurance does not cover workers' compensation claims, professional liability claims, or commercial auto claims. You need to have separate policies to cover these risks. For example, you need workers' compensation insurance to cover employee injuries, professional liability insurance to cover errors and omissions, and commercial auto insurance to cover vehicle accidents. You should work with an insurance professional to ensure you have the necessary coverage to protect your business from all potential risks.
Can I cancel my General Liability policy at any time?＋
Yes. You can cancel your General Liability policy at any time, but you should understand the potential consequences. If you cancel your policy, you may not have coverage in case of a claim, which can lead to financial ruin. You should work with your insurance professional to understand the terms of your policy and the potential consequences of cancellation. They can help you navigate the process and ensure you have the necessary protection for your business. You should also ensure you have a good reason for cancelling your policy, such as a change in your business operations or a reduction in your risk profile.
Partner offer · General Contractors in Colorado
Ready to cover your general contractor business in Colorado?
Flexible coverage built for general contractors in Colorado — by the job, month, or year. Get a fast online quote with no long-term commitment.
Sponsored · Coverage for general contractors
Other coverages general contractors in Colorado should know
This article is for general educational purposes and is not insurance or legal advice. Coverage requirements and pricing in Colorado change over time and vary by business. Verify current rules with the Colorado Department of Insurance and a licensed agent before purchasing a policy.