What Business Insurance Is Required in Colorado?
As a business, you must account for many risks and exposures. After all, even the most diligent and experienced organizations may eventually be involved in accidents, errors or other incidents that could lead to significant financial losses. Furthermore, while business insurance is already an advisable financial precaution, it may also be mandated, meaning failure to acquire and maintain appropriate coverage could lead to costly fines and penalties.
What Is Business Insurance?
Business (or commercial) insurance does not generally refer to a single type of insurance product that can financially protect your organization from all incidents and perils. Rather, a business policy typically involves a collection of policies that, when woven together, cast a fitting financial safety net across many common risks and exposures that may impact your enterprise.
What Types of Business Insurance Does My Business Need?
As a Colorado business, you may be beholden to various laws and requirements regarding insurance, such as the following:
- Workers’ compensation insurance—This coverage is legally required for nearly all Colorado organizations that employ at least one person. Although there may be some exemptions, any company that hires someone else to perform services for pay is generally required to maintain a workers’ compensation insurance policy.
- Commercial auto insurance—If your company owns and uses motor vehicles for business purposes, this type of coverage is mandated by law. Although state law establishes minimum commercial auto insurance requirements, maintaining a policy with expanded coverage may be advisable to protect your business from potentially catastrophic out-of-pocket losses.
- Professional liability insurance—Also known as errors and omissions insurance, this type of coverage may be legally required depending on the industry in which your business operates. For example, health care providers, real estate professionals and companies awarded with state or local government contracts may be required to carry coverage.
- Business property insurance—This coverage, also known as commercial property insurance, may be required by landlords and or lenders if you rent or lease your business’s premises or equipment.
While the aforementioned types of insurance may be required, your business should not assume that retaining them addresses all of your coverage needs. In addition, the following types of policies are often advisable for many commercial enterprises:
- General liability insurance
- Cyber liability insurance
- Business interruption insurance
- Employment practices liability insurance
- Commercial umbrella insurance
We’re Here to Help
The qualified insurance professionals at McDonald Insurance Group can help your company identify and address applicable coverage requirements. Contact one of our agents today to begin analyzing your insurance needs, exploring available options and assembling an optimal collection of coverage for your business.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.