| WHAT INSURANCE SHOULD MY BUSINESS HAVE?
Most businesses need to purchase at least the following five types of insurance:
Required Insurance for Small Businesses in Colorado
- Health and/or Supplemental Insurance
- Property Insurance
- Liability Insurance
- Business Vehicle Insurance
- Workers Compensation Insurance Workers compensation questions
Workers Compensation insurance - is required for all businesses with employees
- All public and private employers in Colorado, with limited exceptions, must provide workers
compensation coverage for their employees if one or more full or part-time persons are
employed. A person hired to perform services for pay is presumed by law to be an employee.
This includes all persons elected or appointed to public sector service and all persons
appointed or hired by private employers for remuneration. There are a few exemptions to this
- Colorado state law mandates that a business provides workers’ compensation coverage for all
employees. This insurance provides prompt, partial wage replacement and covers medical
expenses for workers injured on the job. The business must pay the full cost of this insurance.
It is unlawful to deduct the cost of this coverage from an employee’s wages.
Automobile Insurance - Any vehicles used by the company must be properly insured according to
- All businesses with employees are subject to Unemployment Insurance tax. Unemployment
Insurance is not regulated by the Division of Insurance, it is in the Colorado Department. of
Labor and Employment.
Colorado law, whether they are owned, borrowed or leased. The minimum limits of liability required by
Colorado law are:
Policies are not limited to these minimums and additional coverage may be purchased. A person who
- $25,000-per person for bodily injury
- $50,000-per accident for bodily injury
- $15,000-per accident for property damage.
- Safeguard your investment in your automobile. Pay for medical expenses in case of an
accident. Provide financial protection from lawsuits. Cover losses caused by uninsured or
underinsured drivers. Pay for damage due to theft, vandalism or natural disasters.
is injured in a car accident is not restricted to seeking only those amounts if the damages or medical
costs are greater, and may attempt to collect additional damages or reimbursement for losses directly
from the business or vehicle owner.
Other Insurance for Small Businesses in Colorado
Professional Liability Insurance is required for certain professions. For other professions, it may be
strongly recommended, if not required by law. This type of insurance is specific to the risks/liabilities in
their profession. Professional Liability Insurance may be called “Malpractice” insurance for some
professions (doctors and other health professionals) and Errors and Omissions (E&O) for other
professions. This type of insurance can pay the costs to defend the professional’s reputation and
cover the potential damages to anyone who was harmed by improper actions or negligence. (See
below for more information on types of liability insurance.)
Depending on the type of service or products offered, a small business may purchase insurance
- Lender-required insurance -- If the business acquires a loan to purchase a building, vehicles
or equipment, the bank or lender may require insurance to protect their investment in the
structure, items or materials being purchased.
- Other types of business insurance
coverage which includes:
- General liability;
- Errors and omissions (E&O);
- Property coverage for fire, water damage and more;
- Spoilage of inventory;
- Business equipment and equipment breakdown;
- inland marine for mobile equipment
- Crime; employee dishonesty, burglary & robbery
- Business interruption;
- Commercial automobile and use of non-owned vehicles;
- Property of others
- Employers’ liability
- Umbrella & excess Liability
- Farm or crop coverage.
OWNERS' GUIDE TO
(click to read more)
Welcome to the
Insuring Your Business:
Small Business Owner's
Guide to Insurance.
There are over seven
million small businesses
in the U.S., ranging
from construction firms
to grocery stores to
businesses. All have
one thing in common:
Without the right
each could be wiped
out by a disaster or a