Insurance is essential for Colorado contractors to protect their business, meet state requirements, and secure contracts. This guide breaks down insurance costs and coverage options based on our analysis of actual quotes from leading carriers.
Build your knowledge with our overview of liability insurance for general contractor.
General Liability Insurance for Colorado Contractors
General liability insurance protects your contracting business from third-party claims of property damage and bodily injury. Based on our analysis of over 800 contractor quotes, here are the typical costs for Colorado contractors:
| Revenue Size | Average Premium | % of Revenue | Favorable Premium | Potential Savings |
|---|---|---|---|---|
| $500K | $7,800 | 1.6% | $5,000 | 36% |
| $1M | $12,800 | 1.3% | $9,400 | 27% |
| $2.5M | $28,800 | 1.2% | $20,500 | 29% |
These premiums assume:
- Clean claims history (5+ years without incidents)
- Standard $1M/$2M coverage limits
- Typical mix of residential and commercial work
- Approximately 10% subcontractor costs
Worker’s Compensation Insurance for Colorado Contractors
Worker’s compensation insurance is mandatory for Colorado contractors with employees. Based on our analysis, Colorado contractors typically pay around $2,716 per employee annually for workers’ compensation coverage.
For Colorado contractors, typical workers’ compensation costs per $100,000 of payroll average $7,400, which is relatively affordable compared to other states.
Common contractor classification codes and approximate rates:
- Code 5606 (Project Manager/Supervisor): $2-4 per $100 of payroll
- Code 5645 (Residential Construction): $7-10 per $100 of payroll
- Code 5403 (Commercial/Large Projects): $10-15 per $100 of payroll
Key factors affecting premiums:
- Employee classification codes
- Annual payroll
- Claims history
- Safety programs
- Experience modifier rating (EMR)
Additional Business Insurance for Contractors in Colorado
1. Commercial Auto Insurance
- Typical cost: $1,000-$4,000 per vehicle annually
- Required for business-owned vehicles
- Higher limits often needed for larger contractors
2. Tools & Equipment Coverage
- Cost: $1,500-$5,000+ annually for $15k-$50k coverage
- Protects both owned and rented equipment
- Coverage follows equipment to all jobsites
3. Commercial Property Insurance
- Protects offices, storage facilities, and workshops
- Annual premiums: $2,000-$20,000+ based on property value
- Coverage for fire, theft, vandalism, and natural disasters
4. Builder’s Risk Insurance
- Premium: 0.15-0.75% of project value
- Covers projects under construction
- Protection against fire, weather, vandalism
5. Surety Bonds
- Premium varies based on credit and experience
- Cost: 1-3% of bond amount
- Required for certain projects and licenses
Get Colorado Contractor Liability with ContractorNerd
ContractorNerd specializes in making insurance simple and data-driven for Colorado contractors. Our platform offers:
- Instant online quotes from top-rated carriers
- Side-by-side coverage comparisons
- Contractor-specific expertise and guidance
- Streamlined application process
- Ongoing policy management support
- Claims advocacy when needed
Our team of contractor insurance specialists understands Colorado’s unique requirements and can help you:
- Optimize coverage levels based on your specific risks
- Find competitive rates through our carrier network
- Bundle policies for additional savings
- Ensure compliance with state regulations and contract requirements
To get started with tailored quotes for your Colorado contracting business, visit our online quote tool or speak with one of our contractor insurance specialists today.