Foundation repair contractors play a vital role in ensuring the structural stability of homes and buildings across Colorado. But working with unstable foundations, heavy machinery, and excavation sites comes with major liability risks—from property damage and worker injuries to customer lawsuits over structural failures.
Without the right insurance, one foundation collapse, soil settlement issue, or excavation injury could bankrupt your business. Here’s what Colorado foundation repair contractors need to know about protecting their company, workers, and reputation.
The Biggest Risks for Foundation Repair Contractors in Colorado
🏚 Property Damage from Improper Repairs – A poorly executed foundation lift or pier installation can cause cracks in walls, floors, and plumbing systems, leading to expensive damage claims.
🏗 Structural Failure & Liability Lawsuits – If a repaired foundation fails or shifts again, homeowners may sue the contractor, claiming negligence or defective workmanship.
🚧 Worksite Accidents & Heavy Equipment Hazards – Foundation repair often requires excavation, hydraulic lifting, and working in confined spaces, increasing the risk of worker injuries.
🌨 Colorado’s Expansive Soil Conditions – The state’s clay-rich soil expands and contracts with moisture changes, making foundation repairs high-risk for long-term stability issues.
💡 Real Case Study: A foundation repair contractor in Denver faced a $400,000 lawsuit after a homeowner claimed the foundation lift caused plumbing and drywall damage throughout their house. Professional liability insurance covered legal defense and settlement costs.
Essential Insurance for Foundation Repair Contractors
✔ General Liability Insurance – Covers property damage, third-party injuries, and lawsuits related to foundation repairs.
✔ Professional Liability Insurance – Protects against claims of faulty repairs, improper soil stabilization, or structural defects.
✔ Workers’ Compensation – Legally required in Colorado for foundation repair businesses with employees. Covers injuries from falls, excavation work, and heavy lifting.
✔ Contractor’s Equipment Insurance – Covers hydraulic lifts, jacks, drilling machines, and excavation tools from theft or damage.
✔ Commercial Auto Insurance – Protects trucks, trailers, and heavy equipment transport vehicles.
✔ Surety Bonds – Required for many municipal and commercial projects to ensure contract compliance.
💡 Did You Know? Some Colorado counties require foundation repair contractors to carry at least $1M in liability insurance before issuing building permits.
How to Reduce Insurance Costs for Foundation Repair Contractors
🔹 Use high-quality materials and pier systems to prevent future repair claims.
🔹 Conduct soil stability tests before performing major repairs to lower liability risks.
🔹 Bundle liability, workers’ comp, and professional insurance to reduce overall premiums.
Final Thoughts
Foundation repair is a high-liability trade, and one structural failure or injury claim could lead to serious financial losses. With the right insurance, foundation contractors can focus on stabilizing structures without worrying about lawsuits or unexpected costs.
