General Liability Insurance in Colorado
Colorado has a law most contractors have never heard of that changes how their liability policy gets read. C.R.S. 13-20-808 tells courts to presume damage from a contractor's work is an accident. Here is that law, the local license minimums, and what Colorado contracts can and cannot make you insure.
Commercial Insurance › General Liability › Colorado
General liability pays when someone who does not work for you is hurt, or their property is damaged, because of your business. In Colorado, whether you are required to carry it depends less on the state and more on the city you work in and the contracts you sign.
This page covers the Colorado side. For how the policy works in general, see our general liability insurance guide.
Written and reviewed by the Grit Insurance Group team · Last reviewed October 12, 2026
Grit is an independent brokerage licensed in Colorado. We place commercial insurance and surety bonds for Colorado businesses from our headquarters in Salt Lake City.
Is General Liability Insurance Required in Colorado?
Not statewide. Colorado does not require most businesses to carry general liability. Two things require it anyway:
- Local contractor licensing. Colorado has no statewide building code, and general contractor licensing is handled by cities, counties and regional building departments. Many of them set a GL minimum to issue or renew a license.
- Your deals. Landlords, lenders, general contractors and project owners write their own minimums into the paperwork. $1,000,000 per occurrence is the usual starting point.
Colorado Local License Minimums
If you pull permits in more than one Colorado jurisdiction, you may be carrying several different license requirements at once. The ones we have verified against each jurisdiction's own published rules:
| Jurisdiction | GL minimum | Certificate details |
|---|---|---|
| Pikes Peak Regional Building Department (Colorado Springs and El Paso County area) | $1,000,000 each occurrence / $2,000,000 general aggregate, every license category | PPRBD as certificate holder. 10-day notice of cancellation or reduction. The certificate must show re-roofing and wrecking / XCU as included or not excluded. Workers comp certificate if you have employees, or a filed Rejection of Coverage if you do not. Binders and pending policy numbers are not accepted. |
| Fort Collins | $2,000,000 general aggregate for most licenses; $1,000,000 aggregate for right-of-way | City of Fort Collins as certificate holder. GL required for all licenses and registrations. |
| Boulder | $1,000,000 per occurrence / $2,000,000 aggregate | City of Boulder as additional insured and certificate holder, plus workers comp as Colorado law requires. |
| Denver | No single GL minimum for building contractor licenses. Certificate with Denver as additional insured for right-of-way and sewer licenses | Denver's building code requires licensed contractors to carry insurance "commensurate with the type of project and scope of work." Total demolition carries its own minimums: $500,000 or $300,000 depending on license class. |
The Pikes Peak detail is the one that catches people. A certificate that does not show re-roofing and wrecking / XCU as included or not excluded gets bounced, even if the limits are right. Tell us which jurisdictions you work in and we will issue certificates that match each one.
The Colorado Law That Changes How GL Claims Are Read
Colorado's Construction Defect Action Reform Act includes a section aimed squarely at contractors' liability insurance. C.R.S. 13-20-808(3) says:
"In interpreting a liability insurance policy issued to a construction professional, a court shall presume that the work of a construction professional that results in property damage, including damage to the work itself or other work, is an accident unless the property damage is intended and expected by the insured."
Why it matters: a GL policy covers property damage caused by an "occurrence," which the policy defines as an accident. Insurers have argued that faulty workmanship is not an accident. In Colorado, the court starts from the opposite presumption. The legislature passed it after a 2009 Colorado Court of Appeals decision that, in the legislature's words, did not properly consider a contractor's reasonable expectation that its insurer would defend it.
The statute also lets a court consider a construction professional's objective, reasonable expectations when a policy is ambiguous (13-20-808(4)(a)).
What it does not do: it does not require coverage for damage to your own work unless the policy provides it, and it does not create coverage that is not in the policy. The exclusions and endorsements on your policy still decide most claims, which is why the policy you buy matters more than the price.
Additional Insured Requirements in Colorado
Colorado limits what a construction contract can make you insure. Under C.R.S. 13-21-111.5(6), a construction agreement provision that requires you to indemnify, insure or defend another party against injury or property damage caused by that party's negligence is void, with limited exceptions. A contract can still require you to name the other party as an additional insured, but only for liability caused by your own acts or omissions. Builder's risk is outside the rule.
In practice: a Colorado sub contract that demands broad-form indemnity or additional insured coverage for the GC's own negligence is asking for something state law will not enforce. Talk to your attorney about the contract language. We will tell you what your policy actually provides.
Construction Defect Deadlines Every Colorado Contractor Should Know
Completed operations claims in Colorado run on a statutory clock. Three facts to keep in mind when you decide how long to keep completed operations coverage in force:
- Notice of claim: a claimant has to send written notice at least 75 days before suing a construction professional, or 90 days for commercial property (C.R.S. 13-20-803.5).
- Statute of repose: six years after substantial completion, with up to two more years if the claim arises in year five or six (C.R.S. 13-80-104).
- 2025 change: HB25-1272, signed May 12, 2025, raised the share of an HOA board needed to start a construction defect claim from a majority to 65 percent and requires recovered money to go to repairs first.
What a Colorado General Liability Policy Covers
Colorado GL policies use the same standard form as most states. They cover bodily injury and property damage to others, personal and advertising injury, small no-fault medical payments, and products and completed operations.
They do not cover your own employees (workers comp in Colorado), your vehicles (commercial auto), your own equipment (inland marine), or professional mistakes (professional liability).
How Much Does General Liability Insurance Cost in Colorado?
There is no single Colorado price. Your premium is set by your class of business, your revenue or payroll, your claims history, the limits and deductible you choose, and for contractors, how much of your work is subcontracted and whether those subs carry their own insurance. Uninsured subcontractors are commonly added to your premium at audit.
Contractors can see how cost varies by state and trade in our contractor general liability cost guide. For your own number, an application quoted with several carriers tells you what you will actually pay.
General Liability Is One Line of a Colorado Program
- Workers compensation, required in Colorado from the first employee, part-time or family included.
- Commercial auto on any vehicle the business owns, borrows or leases.
- Umbrella or excess liability for contracts above $1,000,000.
- A business owners policy for smaller businesses that qualify.
Contractors should start with our Colorado contractor insurance page. Everyone else, see our Colorado business insurance guide.
Frequently Asked Questions
Is general liability insurance required in Colorado?
Colorado has no statewide general liability requirement for most businesses. Many cities and regional building departments require it to license contractors, often $1,000,000 per occurrence and $2,000,000 aggregate, and most leases and contracts require it as well.
What is C.R.S. 13-20-808?
It is a Colorado statute that tells courts how to read a liability policy issued to a construction professional. A court must presume that property damage resulting from the contractor's work, including damage to the work itself, is an accident unless the damage was intended and expected. It does not create coverage the policy does not contain.
How much general liability do Colorado contractors need?
It depends on where you work. Pikes Peak Regional Building Department and Boulder require $1,000,000 per occurrence and $2,000,000 aggregate, Fort Collins requires a $2,000,000 aggregate for most licenses, and your contracts may require more. Check each jurisdiction you pull permits in.
How much does general liability insurance cost in Colorado?
It depends on your industry, revenue or payroll, claims history, limits and how much work you subcontract. A Denver office and a Colorado Springs roofer pay very different premiums for the same limit. An independent agent can quote several carriers at once.
Can a Colorado contract require me to cover the other party's negligence?
Generally no in construction. C.R.S. 13-21-111.5(6) voids construction contract provisions requiring you to indemnify or insure another party for its own negligence, with limited exceptions, and limits additional insured requirements to liability caused by your own acts. Have an attorney review the contract.
Get General Liability Coverage in Colorado
Tell us what you do, which Colorado jurisdictions you work in, and what your contracts require. We will match limits, endorsements and certificate wording to each one.
Call the Grit team at (801) 505-5500 or start online.
