General liability insurance is a necessity for most small businesses. It protects you from accidents that can occur at your business. For example, you need to have a lot of general liability insurance if you own or operate a company that may cause injuries, such as a restaurant, construction company, repair shop, and more.
With the constant threat of litigation in the U.S., you’d be taking a considerable risk not to buy general liability insurance—but you’d also be a fool not to shop for it.
In Colorado, many companies provide this type of insurance and being able to choose from so many companies, you need to take time to compare different companies before deciding on one. Like most things, it pays to do some research and shop around beforehand – so that’s why we’re here.
Below are the six general liability insurance companies in Colorado you can trust in 2021.
- Top 6 General Liability Insurance Providers in Colorado
- What is General Liability Insurance?
- What does General Liability Insurance Cover?
- What Doesn’t General Liability Insurance Cover?
- Why do Businesses Need General Liability Insurance in Colorado?
- Who Affects the Cost of General Liability Insurance in Colorado?
- How Much Does General Liability Insurance Cost in Colorado?
Top 6 General Liability Insurance Providers in Colorado
We researched more than 20 companies offering general liability insurance in Colorado and here are our recommendations of the top 6 providers:
- Simply Business: Best for finding cheap coverage from top-tier carriers
- CoverWallet: Best for Instant Rates
- Hiscox: Best for Flexible Payment Plans
- The Hartford: Reliable and Long-Standing Provider of Small Business Insurance
- Progressive: Best If You also Need Commercial Auto Insurance for Your Business
- Next: Best for fast and affordable quotes
Simply Business: Best for finding cheap coverage
Simply Business is a digital brokerage firm specializing in serving small businesses. What sets them apart is that they partner with several reputable carriers that have solid financial strength ratings and tend to offer low-cost coverage. That makes it easy for you to find the cheapest general liability insurance quotes with them.
After submitting your information, Simply Business will provide several quotes from partners that they work with. Many of their carrier partners may not be well-known but offer great affordable quotes that you wouldn’t be able to access otherwise.
Getting and comparing several quotes online are fast and simple. Within 10 minutes you will find the cheapest one for you.
Simply Business also has a great customer satisfaction rating on trustpilot.
CoverWallet: Best for Instant Quote Comparison
CoverWallet was founded in 2015 with the idea of putting a simple, convenient insurance solution within reach of every business.
The company acts as an online brokerage of business insurance, offering coverage from top carriers nationwide, which allows them to cover a broader range of industries— over 30.
Covering all business types from restaurants and small retail stores to fitness clubs and event planners, CoverWallet wants to be your one-stop shop for business insurance. To do this, the company helps business owners to compare and pick several quotes within minutes with the option of managing other business insurance policies on the CoverWallet dashboard.
From a policy to protect you from liability suits to a package that allows you to cover merchandise against damage or loss, CoverWallet will help you navigate the sea of confusing insurance jargon and get the coverage that works for your business.
Hiscox: Best for Flexible Payment Plans
Hiscox helps protect people and their possessions in everyday life. With offices in Bermuda and all 50 U.S. states, Hiscox combines a global perspective with local expertise when delivering a range of insurance products to individuals and businesses.
This insurance company offers personal and business liability policies for attorneys, accountants, real estate agents, and a wide range of other professionals. Whether you’re headquartered in Silicon Valley, on a farm in North Carolina, or anywhere in-between, Hiscox has a tailor-made policy that can help you manage your business risks.
If you want to protect your business from potential lawsuits, Hiscox insurance can be a great option. Not only does Hiscox provide you with reliable insurance coverage, but this global company also offers exceptional service that is always quick and courteous.
With a wide range of policies to choose from and a flexible payment plan (if you bundle policies), your business is sure to find the proper protection at an affordable price.
The Hartford: Established and Long-Standing Provider of Small Business Insurance
Hartford is one of the largest insurance companies in the U.S. and has protected families and businesses for over 200 years.
With flexible small business insurance solutions, including business auto insurance, business umbrella insurance, traditional commercial business insurance, and more, the company is here for you to support your business with quality insurance and service.
If you’re starting a business or considering coverage for the first time, turn to The Hartford.
Progressive: Best If You also Need Commercial Auto Insurance for Your Business
Progressive Insurance is one of the best insurance companies in the U.S. Although the company’s main strengths lie in motorcycle and auto insurance, the insurance company provides competitively priced standard homeowner’s insurance and more.
With its strength in the auto insurance industry, Progressive is probably one of the best providers for commercial auto insurance, which tends to be one of the more expensive business insurance policies. If you run a business that needs to have commercial auto insurance, you should definitely give Progressive a look. And if you also need general liability insurance, you might consider getting it through Progressive as well to benefit from its multiple discount programs.
You should be aware that Progressive doesn’t underwrite general liability insurance policies. Instead, it acts as a broker to sell general liability insurance underwritten by other insurers. If you buy a general liability insurance policy from Progressive, you will enjoy good discounts on both general liability and commercial auto insurance policies.
Next: Best for fast and affordable quotes
Next Insurance is an entrepreneur-driven company. This small business insurance specialist offers simple, specialized policies online at affordable rates with free monthly payment options.
Next Insurance provides small business owners with top-quality general liability insurance through its specialized online quote engine. The company is dependable and straightforward for entrepreneurs, offering flexible plans tailored to meet the needs of a diverse clientele while maintaining affordable coverage.
Even though Next is a relatively new and innovative company, you can rest assured knowing it has an excellent rating from A.M. Best, an insurance company rating agency. All the company’s policies are backed by MunichRe, an established insurance company and reinsurer. More than 10,000 business owners have turned to Next for their insurance needs. The firm has earned a solid 4.7 customer rating.
One caveat about Next: It offers insurance coverage for a limited number of industries.
>>MORE: The 10 Best General Liability Insurance Companies for Small Businesses
What is General Liability Insurance?
General Liability Insurance (GLI) is coverage designed to help you cover claims that are likely to come up in your business even if you have no direct responsibility for them.
For example, if you run a handyman business and a customer gets injured on your premises, but you didn’t make sure the safety equipment was in place, then you could be held liable. GLI provides liability protection on top of regular insurance, so you won’t have to pay out of pocket for serious injuries or even death claims.
What does General Liability Insurance Cover?
According to the U.S Small Business Administration, general liability insurance in Colorado protects your business if someone sues you for something that your company caused.
General liability insurance in Colorado covers:
- Property or bodily harm caused by your business
- Advertising injuries like copyright infringement
- Reputational harm caused to an individual or company from slander, libel, or malicious prosecution by your company
- Medical costs if a client is injured on your property
- Damage to rented property
What Doesn’t General Liability Insurance Cover?
General liability insurance does not cover:
- Auto accidents – you’ll need to have commercial auto insurance to cover this
- Employee injuries – you’ll need workers compensation insurance to cover this
- Workmanship
- Data breaches – you’ll need cyber security insurance to cover this
- Professional mistakes – you’ll need professional liability insurance to cover this
- Punitive damages (in some states)
- Intentional acts
- Claims resulting from decisions by executives or directors
Why do Businesses Need General Liability Insurance in Colorado?
Even though it is not mandated by law, business owners in Colorado need to consider general liability insurance for both legal and financial reasons. If accidents do happen, a severe injury or damage can spell disaster for your business—and you might not have enough cash at hand to recover from it.
Many small business owners are hesitant to purchase general liability insurance because they fear it’ll cost too much. However, without a general liability insurance policy in place, when accidents happen, it will likely cost you the whole business.
If you’re still not convinced, here are other reasons why you should consider general liability insurance as a contractor in Colorado:
- A study conducted by the National Association of Insurance Commissioners found that the average cost of liability insurance for small businesses in Colorado is 5 percent less than large businesses.
- Currently, there are over 654,000 small businesses in Colorado which makes up for over 48.1% of the private workforce in Colorado.
- As of 2020, civil cases (which include litigation) made up 46% of the total number of filings in the Colorado Judicial Branch.
- Should you be hit with a slip and fall claim in Colorado, you might have to pay up to $20,000 or more. Reputational harm also averages $50,000 in costs.
As if that was not enough, State Courts in Colorado have a reputation of awarding large settlements. And worse still, all this is money you would have to pay out of pocket without a general liability insurance coverage.
For this reason, small business owners should seriously consider purchasing general liability insurance for their business sooner than later.
What Affects the Cost of General Liability Insurance in Colorado?
Several factors determine the overall cost of general liability insurance. The elements can be complex and subject to change over time, but the most basic include:
- The kind of work you do
- Number of employees
- Annual revenue
- Claim history
- Amount of coverage
How Much Does General Liability Insurance Cost in Colorado?
A general liability insurance policy costs an average of $42 per month or $504 per year in Colorado.
We get a couple of quotes from some of the companies we recommended above and here are some quote samples:
- Get a quote on insurance from Next Insurance company for just $300 annually.
- With Hiscox general liability insurance, you can get a quote and insurance coverage online in only a few minutes at a $350 annual premium.
- With Progressive insurance, you can request a quote online for an average of $636 per annum, depending on specific business features.
However, the cost might vary depending on the type of business you do and the part of Colorado your business is located in. Companies with higher probabilities of risk or located in higher risk areas might be required to pay more compared to companies with low-risk chances in low risk areas.
For example, a photographer in Denver is likely to pay higher insurance fees compared to another photographer working in Steamboat Springs .
Because various factors determine the cost of general liability insurance, one insurance company might be cheaper than another for you. Fortunately, digital brokers like CoverWallet can fill in the blanks for you and find the best deal.
Final Thoughts
General Liability Insurance isn’t just used for big companies — small businesses and large businesses in Colorado may require it. Even though small claims tend to be less expensive than large ones, there are still benefits to having these kinds of protection in place.
General liability insurance means you can rest assured knowing your business is protected from financial ruin should your company be sued.
Whatever your reason for needing it, finding the right Colorado general liability insurance company can be easy with our list of Colorado’s top 6 general liability insurance companies.
