If you’re a contractor working in Colorado, having the right insurance in place is essential in 2025. With new risks, rising premiums, and increasing scrutiny around job site safety and liability, now is the time to review your coverage. These 11 tips will help you better understand what’s needed for Colorado contractors insurance—and how to make sure your business stays protected and compliant.
1. Know What General Liability Insurance Covers
General liability is a must for most Colorado contractors. It can cover third-party bodily injury, property damage, and legal defense costs. Many cities or clients require a minimum limit of $100,000–$1,000,000 depending on the scope of work. Always confirm local and contractual requirements.
2. Bundle Coverage with a Business Owner’s Policy (BOP)
A BOP combines general liability and property insurance and is often cost-effective for small to mid-size construction businesses. Ask your agent if your operations qualify.
3. Maintain Workers’ Compensation Compliance
Colorado law requires any business with employees to carry workers’ comp insurance. This policy can cover medical expenses and wage replacement for job-related injuries. It’s required even for part-time or seasonal workers.
4. Don’t Skip Commercial Auto Insurance
Whether you own or lease vehicles for your contracting business, commercial auto insurance is a must. Hired and non-owned auto (HNOA) coverage is also essential if employees use personal or rented vehicles for business.
5. Use Builder’s Risk Coverage for Projects Under Construction
Builder’s risk insurance protects your materials, tools, and unfinished work from theft, vandalism, fire, and severe weather. Many project owners and lenders will require it before work begins.
6. Consider Professional Liability Insurance (E&O)
If you provide any design, consulting, or project management services, errors & omissions insurance can help protect against claims of negligence or missed deadlines. It’s increasingly important as project complexity grows.
7. Add Umbrella Coverage for Extra Protection
In today’s litigious environment, umbrella insurance can provide an extra $1M+ in liability protection above your other policies. Many Colorado contractors are adding this in response to rising claim costs.
8. Review Policies for Hail, Wind & Wildfire Exposure
Colorado contractors face increasing exposure to extreme weather—especially along the Front Range. Make sure your property and builder’s risk policies clearly address hail, wind, and wildfire damage, and understand any exclusions.
9. Prioritize Job Site Safety and Risk Management
Insurance carriers reward contractors who invest in safety training, formal protocols, and incident documentation. A clean claims history and strong risk management program can improve your rates and eligibility.
10. Work with a Broker Who Specializes in Contractor Insurance
Not all agents understand the specific needs of the construction industry. Find one who specializes in Colorado contractor insurance, understands state regulations, and can tailor coverage to your project types.
11. Review and Understand Your Policies Annually
Don’t wait until you file a claim to understand what’s covered. Review policies annually, confirm limits, and clarify exclusions or gaps with your agent. Ask for a Certificate of Insurance (COI) that aligns with your contractual requirements.
Final Thoughts
The construction landscape in Colorado is changing—and so are insurance needs. Between regional weather risks, rising premiums, and evolving project demands, now is the time to review your business’s insurance strategy.
By staying informed and working with an experienced commercial insurance advisor, Colorado contractors can protect their assets, comply with state laws, and build resilience for the future.
🛠 Need Help with Colorado Contractor Insurance?
Whether you’re framing houses in Fort Collins or pouring concrete in Colorado Springs, the right policy matters. Reach out to a licensed broker who understands Colorado’s construction insurance market and can guide you through options tailored to your trade.
