Contractor Insurance in Colorado
Colorado does not license general contractors at the state level, so your insurance requirements change at every city line. Here is what the local building departments require, the workers comp rules that apply to construction, and the Colorado laws that shape your GL policy.
Business Insurance › Contractors › Colorado
We grew up in the trades, and contractors are the core of what we do. Grit places insurance and surety bonds for Colorado contractors, from one-truck operations to general contractors bidding public work.
Colorado contractor insurance comes in three layers: what your licensing jurisdictions and the state require, what your contracts require, and what keeps one bad job from ending the company.
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.
What Insurance Does a Colorado Contractor Need?
Workers comp from your first employee, or a filed rejection if you are an eligible owner with none. General liability at whatever minimum each jurisdiction you are licensed with sets, commonly $1,000,000 per occurrence and $2,000,000 aggregate. Commercial auto on every business vehicle. Then whatever your contracts add, which usually means an umbrella and specific endorsements.
Who Licenses Contractors in Colorado
Colorado has no statewide building code, and general contractor licensing is handled by cities, counties and regional building departments. Denver, for example, issues its own contractor licenses and does not accept licenses from other counties or states.
The state does register some trades:
- Electrical and plumbing contractors register with the state electrical and plumbing boards. Registration requires evidence that you comply with Colorado's workers compensation and unemployment insurance laws, and a licensed master electrician or master plumber.
- Fire suppression system contractors register with the Division of Fire Prevention and Control and must show general liability of at least $1,000,000.
Local License Insurance Minimums
| 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. |
Working in several jurisdictions means several certificate holders and several sets of wording. Pikes Peak's re-roofing and XCU wording is the detail we see trip up contractors most. We issue certificates built to each jurisdiction's rules.
Workers Comp Rules That Apply to Construction
- No exemption for being small. One employee, part-time or family, requires coverage.
- Owners must carry it or reject it. In construction, even a sole proprietor or partnership must either insure the owner or file a WC43 rejection. Corporate officers and LLC members need at least 10 percent ownership and management control to reject.
- You must get proof from your subs. Under C.R.S. 8-41-404, whoever contracts for construction work must provide coverage for, or require proof of coverage from, every direct sub. Check CDLE's coverage and rejection lookups before work starts.
Full details on our Colorado workers comp page.
Colorado Laws That Shape Your Liability Coverage
C.R.S. 13-20-808: damage from your work is presumed an accident
When a court reads a liability policy issued to a construction professional, it 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 your policy does not contain, so the exclusions on your policy still matter. More on our Colorado general liability page.
Anti-indemnity and additional insured limits
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
- 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.
The Full Colorado Contractor Program
| Coverage | What it covers | Why Colorado contractors need it |
|---|---|---|
| General liability | Injury and property damage to others, including completed work | Required by most local licenses and every contract |
| Workers compensation | Employee injuries | Required from the first employee; owners must carry or reject in construction |
| Commercial auto | Trucks, trailers, hired and non-owned vehicles | Colorado requires liability on vehicles the business owns, borrows or leases |
| Inland marine / equipment | Tools and equipment on site or in transit | GL and property do not cover your own equipment at the job |
| Builders risk | The structure under construction | Often required on new builds and remodels |
| Umbrella | Limits above GL, auto and employer's liability | How most contractors meet higher contract limits |
| Contractors pollution | Pollution caused by your operations | Excluded from standard GL |
Colorado Contractor Bonds
Several Colorado jurisdictions require license or permit bonds, and public work requires bid, performance and payment bonds. Our Colorado contractor license bond page covers the local bond requirements. Colorado also changed its retainage rules for bonded work; see our breakdown of Colorado retainage bonds under HB 1311.
Looking for public work to bid? Start with our guide to finding construction work in Colorado. Bonding for the first time or need more capacity? Take the Bond Scorecard.
Colorado Contractor Insurance by Trade
- General contractors
- Excavation and concrete
- Roofing
- Electrical, plumbing and HVAC
- Landscaping and painting
How Much Does Contractor Insurance Cost in Colorado?
Your trade sets most of it. After that it is payroll, revenue, subcontracted work and whether those subs carry their own insurance, your claims history, and the limits your licenses and contracts require. Our contractor general liability cost guide shows how GL cost varies by state and trade.
Frequently Asked Questions
What insurance does a Colorado contractor need?
Workers compensation from your first employee, or a filed rejection if you are an eligible owner with no employees. General liability at the minimum set by each city or regional building department you are licensed with, often $1,000,000 per occurrence and $2,000,000 aggregate. Commercial auto on business vehicles. Most contracts add an umbrella and specific endorsements.
Does Colorado have a state contractor license?
Colorado has no statewide building code, and general contractor licensing is handled by cities, counties and regional building departments such as Denver and Pikes Peak Regional Building Department. Electrical and plumbing contractors register with the state.
Do Colorado electrical and plumbing contractors need insurance to register?
State registration for electrical and plumbing contractors requires evidence of compliance with Colorado's workers compensation and unemployment insurance laws. Local licensing and contracts set any general liability requirement.
Do Colorado sole proprietor contractors need workers comp?
In construction, a sole proprietor or partnership must either carry workers compensation for the owner or file a rejection of coverage with the Division of Workers' Compensation.
How much does contractor insurance cost in Colorado?
It depends on your trade, payroll, revenue, subcontracted work, claims history and the limits your licenses and contracts require. The fastest route to a real number is quoting several carriers at once.
Get Your Colorado Contractor Program Quoted
Tell us your trade, your payroll, the jurisdictions you are licensed in and what your contracts require. We will build the insurance program and the bond program together.
Call the Grit team at (801) 505-5500 or start online.
