Insurance in Colorado

Colorado does not mandate commercial general liability coverage as a condition of a DORA electrician or plumber license. State licensing at DORA focuses on individual trade qualification (wireman, journeyman, master) rather than contractor insurance. That is a floor, not a ceiling. Most Colorado cities that register electrical, plumbing, and mechanical contractors do require CGL with minimum limits and certificate of insurance filed with the city. General contractors and commercial owners will typically require CGL with additional-insured endorsements before you can step on site. Most Colorado trades operators carry $1,000,000 per-occurrence / $2,000,000 aggregate CGL at a minimum, with higher limits for commercial work. Workers' compensation. Colorado requires workers' compensation insurance for virtually all employers with one or more employees, under Colorado Revised Statutes Title 8 Article 41 (https://leg.colorado.gov/). The Colorado Division of Workers' Compensation, within the Department of Labor and Employment (CDLE), administers the system. A sole proprietor with no employees is not required to cover themselves but may elect coverage. Source: CDLE Division of Workers' Compensation (https://cdle.colorado.gov/divisions/division-of-workers-compensation). Other coverages trades operators typically carry in Colorado: - Commercial auto for trucks and vans. Personal auto policies carve out business use. Colorado's minimum financial responsibility limits are low. Commercial buyers expect well above the state minimum. - Hired and non-owned auto for employees driving their own vehicles on company errands. - Inland marine (contractor's equipment) for tools, equipment, and materials in transit or on site. Tool theft from Colorado job sites is not rare. - Pollution liability for refrigerants, solvents, and fuel handling. Material for HVAC, mechanical, and underground trades. - Umbrella for $1M–$2M over the underlying CGL and auto layers, commonly required by commercial GCs. - Builder's risk, on a per-project basis, for new construction and major remodel work. Shop the market annually. Colorado trade associations (ABC Rocky Mountain, AGC Colorado, PHCC of Colorado, IEC Rocky Mountain) run group programs that sometimes price below street rates. Whatever you buy, keep the applicable municipal license bond current and the CDLE workers' comp policy active. Lapses on either are license-impacting at the city level and can trigger CDLE penalties.