Insurance for Small Business Owners 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 accidents or injury lawsuits. And it typically provides relief for medical costs related to treatment for such occurrences.

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 third-party damage claims—such as advertising misrepresentation or a customer wet floor slip-and-fall. General liability insurance coverage may also be required for a commercial space lease.

Professional Liability Insurance.

Often referred to as errors and omissions insurance, professional liability coverage is 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 For example, an employee provides outdated tax advice, resulting in a customer damage claim.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.