General contractors build and manage Colorado’s homes, offices, and infrastructure, overseeing multiple trades and subcontractors. But with that responsibility comes significant risks—from injuries on-site to property damage and lawsuits.
One accident, dispute, or defect could bankrupt a project without the right insurance. Let’s break down why general contractor insurance is essential, the biggest risks you face, and real claims examples that highlight the importance of coverage.
The Biggest Risks for General Contractors in Colorado
🏗 Job Site Accidents & Worker Injuries – Construction is one of the most dangerous industries. Falls, heavy machinery accidents, and electrical shocks are common.
🏠 Property Damage from Construction Work – A subcontractor’s mistake (such as a plumbing error) can cause thousands in damages.
⚖️ Lawsuits Over Construction Defects – Even a minor defect could result in a costly legal battle years later.
🌨 Weather-Related Delays & Damage – Colorado’s harsh winters and sudden hailstorms can damage materials and delay projects.
💡 Real Case Study: A general contractor in Boulder faced a $400,000 lawsuit after a subcontractor’s framing work was found defective two years after project completion. Without professional liability insurance, the contractor would have had to pay out-of-pocket.
Essential Insurance Coverage for General Contractors
✔ General Liability Insurance – Covers third-party injuries, property damage, and lawsuits.
✔ Workers’ Compensation – Required in Colorado if you have employees or subcontractors.
✔ Builder’s Risk Insurance – Protects unfinished projects from damage due to fire, theft, or weather.
✔ Professional Liability Insurance – Covers lawsuits related to construction defects and errors.
✔ Commercial Auto Insurance – Covers work vehicles used to transport materials and equipment.
💡 Did You Know? Colorado requires general contractors to verify that subcontractors have their own workers’ comp coverage—or the GC can be held liable.
How to Lower Your Insurance Costs
🔹 Hire insured subcontractors to limit your liability.
🔹 Invest in workplace safety training to reduce injuries.
🔹 Bundle policies for better rates.
Final Thoughts
Without the right insurance, one accident, lawsuit, or natural disaster could end your business. General contractors in Colorado must protect themselves—so they can focus on building, not battling claims.
