Do You Need Small Business Insurance in Colorado?
The Centennial State may be known for the Rocky Mountains, skiing, and craft beer, but it is also home to small businesses serving many other needs across the healthcare, food and beverage, and consulting industries (among many others). These small but mighty Colorado businesses are growing in number each year and currently:
- Provide over 1 million jobs to nearly 49% of all private workers; and
- Account for 612,000 of all businesses in the state.
To protect these businesses from the burden of liability or damage costs, Colorado mandates certain small business insurance coverage. Unexpected events, like theft or a customer accident, as well as a data breach or delivery accident, may be claimed—depending on the coverages selected.
Required Business Insurance Coverage in Colorado
Commercial Auto Insurance
The state mandates all drivers—individual or commercial—carry automobile insurance in case of an accident or other covered event (ex. theft). The minimum benefits for Colorado include ($25,000 per person/$50,000 per accident) for bodily injury liability and ($15,000 per accident) for property damage liability.
Workers’ Compensation Insurance.
It is fairly common for states, including Colorado, to include Workers’ Compensation insurance. This type of coverage helps shield a small business from on-the-job employee accident or injury lawsuits. And it typically provides relief for medical costs related to treatment for such occurrences.
Recommended Business Insurance Coverage in Colorado
Small Business Owner’s Insurance.
Referred to as a Business Owner’s Policy or BOP, is insurance coverage that spans both liability and property damage. So events like fire and theft, in addition to customer injuries and damage claims, are typically covered in this singular policy.
General Liability Insurance.
Small businesses in Colorado can choose liability coverage individually, which focuses on common damage claims—such as advertising misrepresentation or a customer wet floor slip-and-fall. This coverage may also be required for a commercial space lease.
Professional Liability Insurance.
Often referred to as errors and omissions insurance, professional liability coverage designed for businesses that provide advice and expertise as a service. For example, an employee provides outdated tax advice, resulting in a customer damage claim.
Cyber Liability Insurance.
Since even a small business can experience a data breach or cyber attack, in Colorado, cyber liability coverage is recommended. This coverage can help businesses pay for related customer notification and fraud monitoring costs, as well as legal fees, associated with breaches, malicious hacking, and cyberattacks.
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