Contractor Insurance in Colorado

If you are a contractor in Colorado, you know that your work comes with risks and responsibilities. You may face accidents, injuries, property damage, lawsuits, and other unforeseen events that could jeopardize your business and reputation. That's why you need contractors insurance to protect yourself and your clients from potential losses.

Contractors insurance is a type of business insurance that covers the specific needs and exposures of contractors in various industries and trades. It can include general liability, workers' compensation, commercial auto, builders risk, professional liability, and more. The core elements of contractors insurance are designed to protect you from claims related to your work and provide financial compensation for injuries or property damage caused by an employee, subcontractor, vendor, client, or other third parties.

At 3R Insurance Agency, we understand that no two contractors are the same. That's why we offer custom-tailored contractors insurance plans to fit your specific needs and provide the coverage you need at a price you can afford.

Our policies include everything from general liability to workers' compensation, property damage, and more. Our 7-step process helps us find the best coverage for your business, from liability and property damage to loss of income or equipment breakdown.

1. Understand Your Needs: We will sit down with you and get to know your business and its specific needs before recommending a policy.
2. Get A Quote: After we understand your needs, we will work hard to find the best coverage at an affordable rate.
3. Review Coverage: Our experienced agents will review the coverage details and help you understand what's included in the policy.
4. Customize Your Plan: We can customize your policy to fit your exact coverage needs and budget requirements.
5. Finalize The Policy: Once you're happy with the coverage, we'll finalize the legal documents and get everything into place for you.
6. Monitor Your Policy: We'll monitor your policy to make sure it's up-to-date and provide you with any additional coverage needs that arise.
7. Answer Questions & Provide Support: Our knowledgeable agents are always here to answer any questions or provide support when needed. When claim time comes, we will be there for you too.

Fill out our online form or call us today to get started on finding the best contractor insurance in Colorado. We have years of experience helping contractors like you find the right coverage at an affordable rate. 

Let us help protect your business and provide financial security for you and your clients!

Unlike many states, Colorado doesn’t have a specific list of insurance policies that contractors must carry - unless mandated by a state or federal law. However, it’s important to understand the different types of policies available and tailor your coverage to fit the specific needs of your business.

General Liability Insurance

General liability insurance is a type of business insurance that protects contractors from common risks they face on the job, such as property damage, bodily injury, and advertising injury. It can cover legal fees, medical expenses, and settlements if a client or a third party sues a contractor for these types of claims.

Clients or partners who hire contractors in Colorado often require general liability insurance, as it shows that the contractor has the financial means to pay for any damages or injuries they may cause. It can also help contractors build trust and credibility with their customers and potential customers.

General liability insurance for contractors in Colorado can vary depending on the size, scope, and nature of the contractor's work. Some factors that affect the cost of general liability insurance include:

• The type of contracting work (e.g., plumbing, roofing, landscaping, etc.).
• The annual revenue and payroll of the contractor.
• The number and location of projects.
• The amount and type of coverage needed.
• The deductible and policy limits chosen.

The median cost of general liability insurance for contractors in Colorado is $105 per month or $1250 per year, but it can be higher or lower depending on these factors. Contractors can compare quotes from different insurance providers to find the best coverage and price for their needs.

Professional Liability (E&O) Insurance 

Professional Liability Insurance, also known as Errors and Omissions (E&O) Insurance, protects you from claims arising from your professional services or advice. It covers you if you make a mistake, miss a deadline, breach a contract, or cause financial loss to your client due to negligence or error. Professional Liability Insurance can help you pay for legal fees, settlements, and judgments if a client sues you for a covered claim.

Professional Liability Insurance is especially important for contractors who provide specialized or technical services, such as architects, engineers, consultants, IT professionals, and more. These professions have a higher risk of lawsuits from dissatisfied clients who may claim their work was faulty, incomplete, or inaccurate. Without Professional Liability Insurance, you could be personally liable for the damages and costs of a lawsuit, which could ruin your reputation and your finances.

The median cost of Professional Liability Insurance for contractors in Colorado is $49 per month or $588 per year. As with General Liability Insurance, the exact cost depends on factors such as your annual revenue and payroll, the type of contracting work you do, and the amount of coverage you need.

Workers' Compensation Insurance 

Colorado law requires contractors with one or more employees to carry Workers’ Compensation Insurance. This type of insurance covers medical expenses, lost wages for employees injured or who become ill while on the job, and legal fees if an employee sues you for a work-related injury.

Workers’ Comp insurance also provides death benefits to the families of employees who are killed in work-related accidents or illnesses. The benefits usually include funeral expenses and a lump sum payment to the family.

The average cost of Workers’ Compensation Insurance for contractors in Colorado is $0.95 per $100 in earnings, but it can vary depending on the type of work, the size and scope of your business, and the amount of coverage you need.

Commercial Auto Insurance 

The state of Colorado requires contractors who own and operate business vehicles to carry Commercial Auto Insurance. Colorado's minimum auto liability coverage is $25,000 for bodily injury or death to one person, $50,000 for bodily injury or death to multiple persons and $15,000 for property damage.

Commercial Auto Insurance covers your business vehicles if they are involved in an accident, stolen, damaged by hail or flood, and more. It also covers you if an employee is injured in a work-related crash or your vehicle damages someone's property. The exact cost of Commercial Auto Insurance depends on the type of vehicles you own and the amount of coverage you need. On average, it costs around $117 per month or $1400 per year for full coverage.

Tools and Equipment Insurance 

Tools and Equipment insurance is an important type of coverage for Colorado contractors, as tools and equipment can be expensive to replace if stolen or damaged. This type of insurance covers a contractor’s tools, equipment, and materials against theft, fire, or vandalism. It also provides coverage for breakdowns, mechanical malfunctions, and any damage or injury caused by the tools.

The cost of Tools and Equipment Insurance varies depending on your equipment type and the value of your tools. On average, it costs around $45 per month or $540 per year for coverage of up to $50,000 in tools and equipment.

Inland Marine Insurance

Inland Marine Insurance is a specialized form of insurance that covers property in transit, such as tools and equipment you transport to job sites. This type of insurance covers your property for loss or damage caused by theft, fire, and other perils. The cost of Inland Marine Insurance depends on the value of your property, but it typically costs around $800 per year for coverage of up to $100,000 in property.

Umbrella Insurance

Umbrella Insurance is an important type of coverage for contractors in Colorado because it provides extra liability protection above and beyond your other policies. This type of insurance can provide coverage for claims that exceed the limits of your General Liability Insurance, Workers' Compensation Insurance, and Commercial Auto Insurance. For example, if you are sued for more than the limits of your General Liability Insurance, Umbrella Insurance can provide additional coverage.



The cost of Umbrella Insurance varies depending on the size of your business and the amount of coverage you need, but it typically starts from $250 per year, with coverage amounts varying based on your needs.

The 3R Insurance Agency team of local Colorado insurance experts can help you find the right coverage for your contractor business. We offer a variety of contractors’ insurance products and services, from General Liability Insurance to Workers' Compensation, Commercial Auto, and Tools and Equipment Insurance.

Contact us today for a free quote on Colorado Contractors’ Insurance. We can help you compare options, find the coverage that best suits your needs, and get the protection you need for your business.

Get a free quote today and protect your business with the right coverage.