- Rising Lawsuit Risks
The number of small business lawsuits is increasing. Without liability insurance, legal defense costs alone can exceed $50,000, even for minor claims.
- Colorado’s Harsh Weather Conditions
Snow, ice, and unpredictable weather increase the risk of slip-and-fall accidents on business properties. If a customer gets injured outside your storefront, your business could be held responsible.
- Business Contract Requirements
Many commercial landlords and vendors require proof of general liability insurance before signing leases or contracts. Having coverage ensures you meet these requirements and avoid losing business opportunities.
How Much General Liability Coverage Do You Need?
The right amount of coverage depends on your industry and risk exposure. Standard policies typically include:
- $1 million per occurrence (per claim).
- $2 million aggregate limit (total coverage for all claims).
High-risk businesses, such as construction companies, may need higher coverage limits.
How to Reduce Liability Risks in Your Business
While insurance provides protection, taking preventive measures can reduce claims and lower premiums:
- Install security cameras to monitor premises.
- Ensure walkways are safe during icy winter months.
- Train employees on proper safety procedures.
- Use contracts with clear liability disclaimers for services provided.
Final Thoughts
General liability insurance is a smart investment for Colorado small businesses in 2025. It protects against costly lawsuits, medical expenses, and property damage claims, allowing you to focus on growing your business. Review your coverage needs with an insurance expert and ensure your business is fully protected.
