Find the Best Business Insurance Options in Colorado
There are approximately 691,000 small businesses in Colorado, which represents over 99 percent of the businesses in the state. Small businesses employ over 1.2 million people in Colorado, making small businesses essential to the state’s economy.
Colorado business owners face various risks, from crime, severe weather, fires, and other kinds of property damage to the financial devastation that a single lawsuit can bring. Colorado business owners, regardless of size, need business insurance to protect their assets and employees.
Business insurance is not a single insurance policy. It is a set of tailored policies designed to cover the unique risks of your business. A comprehensive program can help you repair and rebuild damaged property after a disaster. And it can help you stay in business and pay for your defense if you are faced with a lawsuit.
An independent insurance agent can help you compare business insurance quotes in Colorado.
Best Business Insurance Companies in Colorado
There are a lot of insurance companies that offer business insurance in Colorado. We’ve noted some of the best business insurance companies in Colorado. They are highly rated for their mix of valuable coverage offerings and competitive pricing.
- EMC Insurance Companies: EMC is in the top 60 business insurance companies in the United States. The company specializes in designing well-rounded insurance programs to protect the financial assets of many types of businesses and organizations.
- Liberty Mutual: Liberty Mutual is headquartered in Boston, MA and has been offering business insurance since 1912. Today the company offers a flexible, multiline range of coverages designed to meet the needs of any business, regardless of size or industry.
- Travelers: Travelers offers highly rated business insurance in Colorado. The company provides a variety of business insurance options, including inland marine, workers' compensation, and general liability.
- Nationwide: Nationwide provides business insurance and other popular types of insurance coverage in Colorado. The company is headquartered in Columbus, OH and is represented by independent insurance agents in 50 states.
- Progressive: Progressive is based in Ohio, but offers business insurance across all 50 states, including Colorado. Colorado business owners can look to Progressive for most of their insurance needs.
- Hanover Insurance Group: Together with local independent agents, Hanover Insurance Group offers standard and specialized insurance protection for small and mid-sized businesses.
An independent insurance agent in your area can help you learn more about these and other Colorado business insurance companies. A local agent can help you get competitive quotes for the coverage that fits your Colorado business insurance needs.
Colorado Business Insurance Requirements
Business insurance is a package of insurance policies covering your property and liability risks. Most types of business insurance are not required in Colorado. But if your business owns any vehicles, you'll likely have to buy commercial vehicle insurance that complies with the state’s financial responsibility laws.
In addition, if you have one or more employees in Colorado, you must have workers’ compensation insurance and maintain it at all times. This requirement applies to all employers, regardless of whether the employees are part-time, full-time, or family members. If you are in the construction industry in Colorado, you may have additional workers’ compensation insurance requirements.
Your independent insurance agent can help you learn more about the requirements for commercial vehicle insurance and workers’ compensation insurance in Colorado.
What Business Insurance Covers in Colorado
A typical business insurance package in Colorado will include the following types of coverage, at a minimum:
- Commercial general liability (CGL) insurance: Protects your business from lawsuits related to bodily injury and property damage claims. It pays for medical expenses, legal fees, and financial settlements or judgments. Your CGL policy even covers personal injury claims such as libel and slander.
- Commercial property insurance: This covers damage to a building and its contents if damaged by a weather event, fire, theft, vandalism, and other covered perils.
- Business interruption coverage: Protects your earnings and pays certain expenses if your business cannot operate because of damage after a fire, hail, wind, equipment breakdown, or another covered event. If you are forced to close for a while to make repairs or rebuild your business, this coverage pays for rent, employee salaries, lost income, relocation fees, and more.
- Commercial vehicle insurance: Protects your business-owned cars and trucks from property damage and liability claims.
- Workers’ compensation insurance: Pays for medical expenses and a portion of an employee's lost wages after a work-related injury.
Your business insurance in Colorado may include additional policies that cover your unique risks.
Liability Coverage Options for Small Businesses in Colorado
Lawsuits against businesses are common. Whether a customer trips and falls in a store or a food manufacturer is responsible for sickening hundreds with tainted products, negligence claims can quickly destroy a business.
A commercial general liability (CGL) policy is a type of small business liability insurance that offers broad protection from lawsuits. It covers the injured party's medical expenses and any property damage you are responsible for. And it covers court costs, attorney fees, and even settlements or judgments that you must pay to injured parties.
A CGL policy does not cover every kind of liability risk. There are additional small business liability policies available for times when your CGL policy isn’t sufficient.
Talk to your independent insurance agent about why you might need other liability coverage options like commercial umbrella insurance, employment practices liability insurance, cyber liability insurance, professional liability insurance, or any other customized small business liability protection.
Property Coverage Options for Small Businesses in Colorado
Property losses can originate in a variety of ways and cause tremendous harm to your business. Here are the basic business property coverage options in Colorado:
- Commercial property insurance: Helps you rebuild or make repairs when an unexpected event—like a fire, a flood, hail, lightning, or a tornado—destroys your business property. It helps you replace, rebuild, or repair computers, inventory, equipment, machinery, furniture, and more after a covered event.
If you own your building, your property insurance covers damage to the structure. If you rent your space, your landlord must purchase coverage for the structure. But you still need to purchase commercial property insurance to cover the contents of your commercial buildings.
- Business interruption coverage: Compensates you for lost business income and pays for operating expenses if you must temporarily close after a covered loss. It is usually included as part of a commercial property policy.
A local independent insurance agent can help you get quotes for business property insurance in Colorado.
Other Insurance Options for Small Business Owners in Colorado
Your business insurance needs likely don’t end with basic property and liability coverage. Other insurance options for small business owners in Colorado include:
- Business owners policy (BOP): A package policy that includes commercial liability insurance, commercial property insurance, and business interruption insurance.
- Workers’ compensation insurance: Typically required for any business that has employees. It pays for lost income and medical expenses for employees who are injured on the job.
- Commercial vehicle insurance: Covers your vehicles and drivers in the event of an accident or other types of vehicle damage.
- Cyber liability insurance: Provides coverage in the event of a data breach involving your business.
- Employment practices liability insurance: Protects you if an employee sues you for discriminatory employment practices.
- Flood or hurricane insurance: Your basic commercial property policy does not cover flood or hurricane damage. Talk to your agent about flood and hurricane insurance if you live in an area that is prone to these events.
- Professional liability insurance: Protects you if a client claims you have been negligent in providing professional services.
- Commercial umbrella insurance: Provides excess liability coverage above and beyond the limits of your applicable underlying commercial liability policies.
This is not an exhaustive list of your business insurance options in Colorado. An independent insurance agent can make sure that all of your Colorado business insurance needs are met.
Average Cost of Business Insurance in Colorado
The size of your business and the types of policies you need to cover your unique risks are the biggest predictors of how much Colorado business insurance will cost. A number of variables that are unique to your business help determine how risky you are to insure, and consequently how costly your insurance will be.
To determine the types and amounts of coverage that you need, your insurance company will evaluate several factors, such as:
- Number of employees
- Size and location of your business
- Whether you are a single-location or multi-location business
- Whether you have flammables, dangerous chemicals, expensive machinery, or other risky or costly commercial property
- Amount and value of your commercial property
- Whether or not you own or lease your building
The more risks you face across your business, whether they are property risks or liability risks, the more your business insurance will cost in Colorado. An independent insurance agent can help you understand all of the risks you face and get quotes for affordable business insurance in Colorado.