Verified insurance requirements for general contractors operating in Colorado.
Colorado does not require GL insurance by state law. There is no statewide general contractor license. However, municipalities (Denver, Colorado Springs) typically require GL as part of local contractor licensing.
Minimum Coverage
$500,000 - $1,000,000
Estimated Annual Cost
$500 - $2,000/year
Colorado requires workers' compensation for ALL employers with one or more employees, including part-time and family members (Colorado Revised Statutes Section 8-40-102). Administered by the Colorado Division of Workers' Compensation under the Department of Labor and Employment (CDLE). Independent contractors without employees must be covered unless they formally reject coverage. Construction contractors must provide WC for their contractors or obtain proof of WC compliance or rejection of coverage.
Minimum Coverage
Statutory limits
Estimated Annual Cost
$1,000 - $5,000/year
Colorado does not require a surety bond at the state level for general contractors — there is no statewide contractor license. Bond requirements are set by local jurisdictions. Denver requires a $50,000 bond for general contractors. The Colorado Division of Water Resources requires a $20,000 bond for well drillers and pump installers.
Minimum Coverage
$5,000 - $25,000
Estimated Annual Cost
$100 - $500/year
Required for business vehicles. Colorado auto minimums: 25/50/15 ($25K per person, $50K per accident bodily injury, $15K property damage).
Minimum Coverage
25/50/15 ($25K per person, $50K per accident bodily injury, $15K property damage)
Estimated Annual Cost
$1,200 - $3,000/year
Provides additional coverage beyond your general liability and auto policy limits. Recommended for larger projects.
Minimum Coverage
$1,000,000+
Estimated Annual Cost
$300 - $1,000/year
$2,800 - $10,000/year
Varies based on your revenue, number of employees, claims history, and specific coverage limits.
Insurance requirements and costs vary by insurer, your business specifics, and local regulations. Always consult with a licensed insurance agent for quotes specific to your situation. This guide is informational only.