If you own a small business in Colorado, it’s important that you understand how Colorado Commercial Liability insurance works. When it comes to protecting your business and assets from legal claims and settlements that could damage your business for good, having the right insurance means everything.
Colorado Small Business
By definition, a small business is defined as having 500 employees or less. Colorado has over 500K small businesses and this makes up nearly 98 percent of all state employees. Due to this, small business is vital to the state of Colorado.
Every Colorado business owner should carry insurance to protect their business. As you’ll soon learn, there’s a number of different coverage options for you to find a business insurance policy that fits your unique business.
Commercial Liability Insurance For Colorado
Commercial liability insurance, also referred to as commercial general liability insurance and business liability insurance, is what protects your small business from financial losses. A commercial liability insurance policy can help protect you from;
- Bodily Injury – This protection covers you in case someone other than an employee gets injured at your business, even if you’re at fault. It can also protect you if your employees are at a client’s home or business and injury occurs.
- Property Damage – This type of protection covers damages caused by you or an employee to another’s property.
- Advertising Injury – This gives you protection from losses that resulted from someone running advertisements against you or your business.
- Personal Injury – This part of commercial liability insurance covers slander, false arrest, libel, invasion of privacy, copyright infringement that causes damage to a person’s reputation or rights.
- Legal Defense – This protects you from the expenses that will result in you going to trial or court, up to your limit coverage.
Minimum Insurance Requirements For Colorado Business
In the state of Colorado, commercial liability insurance is not required. Colorado is a fault state.
- The cap for non-economic damages is $468,010.
- The court can increase the non-economic cap to $936,030.
- Economic damages are not capped.
- Punitive and exemplary damages are not routinely awarded.
- Statue of limitations for personal injury suits and products liability is 2 years.
- Automotive injuries statue of limitations is 3 years.
How Much General Liability Insurance Should I Buy?
Every business is unique, so the amount of general liability insurance you should carry for your business is going to vary from the next.
With that said, ask yourself, is my business in a higher-risk category? For example, is your business in construction? Building? If so, you may want to make sure you carry a $1M policy.
For many Colorado business owners, $500K-$1M is going to be enough. However, if you feel you should carry more depending on your specific business industry, that could be the right move for you.
If you’re not sure, no worries, we can help you decide. You can give us a call today at 1-303-623-1997 for a free commercial liability insurance quote. We’ll be glad to go over everything and weight out all your options.
How Are Premiums Calculated?
There’s a wide range of factors that will determine your Colorado commercial liability insurance premiums. Here’s a few of those;
- Types of services offered
- Types of products offered
- Type of business you have
- How long you’ve been in business
- How many employees you have
- Claims history
Additional Colorado Business Insurance Coverage
Many Colorado business owners want to make sure their assets are protected, so they look for other insurance types for added coverage.
In the state of Colorado, you’re going to be required to carry workers’ compensation insurance. If you’re a sole proprietor with no employees, you’re not required to have workers’ comp insurance.
If your business has drivers, Colorado requires all of them to have a valid Colorado license. For this, it’s recommended that you carry commercial vehicle insurance.
Now, let’s look at the other insurance types Colorado business owners should consider.
- Business Owner’s Policy (BOP)
- Errors And Omissions (E&O)
- Employee Disability Insurance
- Professional Liability
- Commercial Property Insurance
- Product Liability
- Employment Practices Liability Insurance (EPLI)
Colorado Department of Regulatory Agencies/Division of Insurance
The Colorado Department of Regulatory Agencies/Division of Insurance is responsible for regulating all insurance policies sold in the state of Colorado, which does include commercial general liability insurance.