General Liability Insurance Colorado – Professional Liability Insurance
When your business is found liable for the loss of another, it can create a financial burden for your operation that has ripe effects in multiple ways. Expensive medical expenses, property losses, and other disputes can harm your business. General liability insurance in Colorado helps local businesses, contractors, and other entities protect against such losses.
There are several different types of business insurance in Colorado, but general liability insurance for Colorado small business operations can ensure that you avoid paying out of pocket, dealing with expensive legal battles, and disrupting your business.
Professional Liability Insurance in Colorado Explained
Also known as errors and omissions insurance (E&O), a professional liability policy in Colorado can offer you protection should a mistake caused by your business causes another business harm. General liability insurance doesn’t cover these issues but when they occur, you can still find yourself liable.
It’s common for businesses and professionals such as consulting firms, to provide advice as their service and if their advice causes damage, the costs of restoring such loss as well as legal expenses can be detrimental. The average professional liability insurance policy in Colorado costs hundreds of dollars and can help you safeguard against substantial financial loss.
Types of General Liability Insurance for Colorado Small Business
Insurance for business liability provides protection that comes in many different forms. This is because within the threat of liability claims are multiple areas in which your business can be the center. Here’s how a commercial general liability policy (CGL policy) protects your company:
Bodily Injury Liability
Your business can become liable for someone’s injuries when they are visiting your property and are injured. The same liability comes into play if you or an employee is negligent and ends up injuring someone. Such costs may include the affected party’s medical expenses, loss of income, and more.
Property Damage Liability
Your general liability insurance policy will help mitigate the cost of restoring damage caused to another party’s property if you or an employee are found responsible.
Legal and Administrative Expenses
Legal expenses are already high and continue to trend higher. Sadly, even with a policy in place, you may face legal and administrative expenses while handling your claim, but without general liability insurance in Colorado, you face the risk of expensive, lengthy lawsuits which can be detrimental to your company.
Advertisement and Reputation Disputes
If your company conducts marketing or advertising efforts that another business deems to be damaging to its operation, legal action may be taken. Yet another reason that it is important to have general liability insurance coverage in place for your business.
Licensing and other copyright issues can arise if the proper steps are not taken. Even an innocent mistake can land your company in hot water when marketing your products or services, but a CGL policy can help you protect against this loss.
A comprehensive general liability insurance policy can help protect your company from a variety of claims including bodily injury and property damage claims while protecting your physical workspace, operations, work conducted using independent contractors, your products, and services.
But like other forms of insurance, a general liability insurance policy won’t cover everything. It’s not blanket coverage but can still help you restore the loss of a third party in many ways rather than using company funds. Here are some common losses that are not covered by your policy:
- Employee injured on the job.
- Losses due to liability that exceed your coverage limits.
- Illegal activities conducted by your employees leading to a loss.
- A loss suffered by your company, including property damage. Commercial property insurance can help you with losses to your company’s property.
- Losses involving an employee while driving either their own vehicle or a company vehicle and conducting business on your organization’s behalf. Commercial auto insurance policies are, however, available.
There is a lot to protect against and each company and industry is different, which is why speaking with a licensed insurance agent can help you gain a clearer understanding of your needs. This allows you to review your operation and build protection that fits both your budget and your risk tolerance.
Professional Liability Insurance for Attorneys in Colorado
Professional liability insurance for law firms in Colorado helps those practicing law protect themselves, and their firms, from potential legal concerns involving malpractice. As anyone practicing law knows, such issues can lead to substantial losses and can take up plenty of resources and time.
Having the right coverage in place can help you avoid such losses and should be crafted toward your specific risks. Attorneys require protection in a much different manner than other professions and by assessing your potential risks, you can pinpoint the right level of coverage that helps protect your practice.
Remember, those who may file for negligence against you or your firm can do so at any time within the two years allotted by Colorado law from the time of the injury. Therefore, such malpractice claims may come when you least expect it. Professional liability insurance for attorneys helps provide an extra level of protection and can grant peace of mind, knowing you’re protected.
General Liability Insurance for Contractors Working in Colorado
Contractors operating in Colorado have many similar interests to protect, much like a small business or larger enterprise do as well. General liability insurance for contractors is arguably even more important because overcoming losses related to liability can be even more detrimental to their operation.
Working as a contractor means assuming risk but you can safeguard your finances and business against these risks with the right coverage. Considering there is the potential for property damage, issues involving advertising, possible medical bills, and more, the right policy will protect you, and your business and help restore losses without as much of a hassle.
Additionally, being a licensed and insured contractor is a requirement in many cases, which doesn’t just make it only a requirement, but could hurt your chances of earning business in the first place.
Businesses That Benefit From General Liability Insurance Colorado
General liability insurance in Colorado can come in handy across a wide range of positions and industries. Basically, no matter the size of your operation or the scope of your reach, if there is the potential for causing a loss for which you can be found liable, general liability insurance for business is an important consideration.
Both general liability insurance coverage and professional liability insurance in Colorado are available to help protect those conducting business throughout the state. Here are some common examples:
- Industry consultants
- Digital and real-life creators
- Entrepreneurs and freelancers
- Restaurants, bars, shops, and other social hubs
- Small businesses
- Manufacturing factories
CGL insurance is important protection no matter the industry. From the oilfield to hospitality, you’ll find it all in Colorado and no matter where your brand operates, having the right policy in place is a necessary safeguard against expensive legal action due to liability.
Is General Liability Insurance Required in Colorado?
No, general liability insurance isn’t required by Colorado law, but that doesn’t mean you might not be required to enroll in some form of coverage. Maintaining commercial general liability insurance is a common term and condition for most businesses leasing property.
This is because landlords understand the importance of these coverages. General liability insurance in Colorado is there to help mitigate the risk of paying for losses out of pocket and depending on the situation, there are legal ramifications for all involved.
To help nip things in the bud, your coverage is there to help everyone avoid legal battles. This means you’ll have a policy in place to help avoid lawsuits due to property damage, bodily injury, and other potential losses for which your company may be liable.
Umbrella Insurance vs. General Liability in Colorado
Commercial umbrella coverage is an extra level of protection for your business when your general liability or professional liability insurance policy won’t cover the size of your loss. Your coverage will have policy limits but if losses exceed these limits, you’re going to have to pay the difference without the protection of coverage.
Fortunately, umbrella policies act as supplemental coverage for companies facing a large loss due to liability. It’s an affordable, additional safety net to help safeguard your company’s operations, the livelihood of your employees, and your own personal finances as owner.
Does Colorado Require Pilot Cars To Carry General Liability Insurance?
Yes, in addition to certifications and commercial auto insurance coverage, you’ll also be required to maintain a minimum of at least $1,000,000 combined single limit or commercial liability coverage for pilot escort operations, according to the Colorado Department of Transportation.
How General Liability and Workers Comp Insurance Works in Colorado?
If you own a business and have an employee that is injured while on the job, general liability insurance in Colorado won’t be enough. You’ll need to have workers’ compensation coverage in order to protect your operation from lawsuits and expensive payouts for medical costs.
A workers’ comp policy in conjunction with your general liability coverage will help avoid coverage gaps and provide a more comprehensive approach to your protection. Non-employee losses are handled by the general liability policy while workers’ comp is there for employees who have suffered an injury on the job.
How Much Is General Liability Insurance in Colorado?
The amount you pay for general liability insurance in Colorado will vary for a variety of reasons, but policies are often affordable coverage costing businesses less than a thousand dollars per year.
When shopping for commercial general liability policies, it’s important to understand the many variables that factor into the price your company will pay. This includes your business’s coverage rate, the size of your company, your organization’s industry, etc.
If you are engaged in riskier business practices, you can expect to pay higher premium rates, and companies with fewer or smaller risk factors will pay lower premiums. For example, you’ll likely find that a small coffee shop will pay a lower rate than an aerospace manufacturing plant.
Overall, trends emerge, and there are similar risk factors that each commercial insurance carrier will view when calculating your policy’s premium. Here are some of the most common risk factors each brand will assess when enrolling your company as a client:
- The location of your business.
- Your company’s industry and the routine levels of risk during normal operating hours.
- The age of your business and the experience leadership has operating within the space.
- How large or small your business is in both physical size and the number of employees your business employs.
- The number of claims your company has made before.
- The amount of coverage your company requires as well as the policy limits set.
- The amount you set for your policy’s deductible.
The range of factors continues but these are some of the most common. You can control some of them, but for many others, they are outside of your control. However, they are all being assessed and they are also being assessed in accordance with each carrier’s individual benchmarks.
Because each company uses its own metrics to determine how risky a client is, there can be many different outcomes involving the amount of risk your company poses for a commercial insurance brand.
These variations can be frustrating because with so many different prices, even for the same level of coverage, how can business owners be sure that they are receiving the best rate? The truth is, in order to keep costs low, the best solution is to shop and compare rates among many different brands.
This is a great way to not only understand which provider offers the lowest price for your company’s commercial general liability coverage, but it can also help you find the best level of protection for your industry’s specific needs.
How To Find Affordable General Liability Insurance in Colorado
Protecting your business from liability losses should be affordable and by working with more than 25 top-rated insurance carriers, Freedom Insurance Group helps deliver such coverage to our clients.
We understand that running a business means accepting risk but there are ways to limit these risks and protect your company’s financial well-being in the process.
Insurance carriers offering commercial policies all look at the amount of risk a potential client will hold when determining how much premiums will be, but they each look at risk differently. This means that you’ll find policies with the same level of protection but for different rates.
You can avoid overpaying by comparing your coverage needs among a variety of brands, which is where our team comes in. The experts at Freedom Insurance Group have forged meaningful relationships and have the tools to quickly compare your coverage needs among our partners and deliver the best option at the lowest possible cost to you.
Whether you are in need of Colorado professional liability insurance or a general liability insurance policy in Colorado, we’re here to help. Get a quote for your business and save more while staying protected.