Colorado Contractor Insurance
Colorado has 563,917 small businesses. Though they span a range of industries, about 64,200 of them involve construction. In 2013, the economy in the state of Colorado grew at a faster rate than the United States. More specifically, its real gross state product increased by 3.8 percent, which is impressive compared to the 2.2 percent growth that the gross domestic product in the United States saw the same year. (Source: BEA). You can prepare your own business to benefit from this growth by making sure you have Colorado contractor insurance. Check out what kind of coverage you need for the best results in this industry.
Colorado Contractors Need The Following Insurance
Coverage for Third Party (GL): If anyone visits your workplace and is injured, you will be responsible for paying for the hospital bills, unless you have general liability insurance. This coverage is an important aspect of your Colorado contractor insurance because it will pay for not only the medical bills of anyone who is hurt on your property, but also the repairs when a visitor’s personal belongings are damaged in any way. If you can’t afford to pay for these costs out of pocket, you need to make sure you include general liability on your Colorado contractor insurance policy.
Tools & Equipment Coverage (BOP): Whether you use major equipment or mostly small tools to do your job, it’s important to protect the tools of the trade. If your business would come to a halt if your ladder, saw, or pressure washer was stolen, lost, or broken, you need tools and equipment coverage. This part of your Colorado contractor insurance is meant to pay for replacements when you lose access to any tools or equipment you need for your job. This applies whether you rent or own the tools and equipment in question.
Employee Coverage (WC): Most construction companies in Colorado do not employ workers, since nearly 49,000 are considered nonemployer firms. But 15,404 construction companies in this state have anywhere from 1 to 499 employees. If this describes your business, you need workers compensation. This coverage will protect your employees by paying for their missed income and medical bills if they are ever injured or become ill as a result of working at your company. It will also protect you by paying for any legal fees you face, such as lawsuits against your business.
Business Vehicle Insurance: If you ever need to drive for business purposes in Colorado, it’s important to have the right insurance policy. This means you should add business vehicle coverage to your Colorado contractor insurance plan. This will ensure that your insurance company will pay for any damages you cause to another car during an accident, because your personal auto coverage does not apply when you are driving for business.
Bond: A surety bond guarantees your services as a contractor in Colorado. This is because it indicates that you will pay a fee if you fail to fulfill the requirements in your contract, so you should include it as part of your Colorado contractor insurance policy.