The Checklist Nobody Hands You When You Start a Contracting Business
You get your license, you buy your tools, you land your first job. Nobody sits you down and says “here’s exactly what insurance you need before you show up on a jobsite.” So a lot of Colorado contractors figure it out the hard way, usually after a general contractor or property owner asks for proof of coverage they don’t have.
Avalue Insurance in Centennial, CO gets this call a lot: “What do I actually need to have?” Here’s the honest answer.
General Liability: The Non-Negotiable
If you’re doing any kind of contracting work in Colorado, general liability insurance isn’t optional in any practical sense. Most GCs and property management companies won’t let you on a job without proof of it, and for good reason, one dropped tool through a window or one client tripping over your equipment can turn into a claim fast.
Workers’ Comp: Required Sooner Than You’d Think
Colorado requires workers’ compensation coverage once you have employees, and the definition of “employee” trips people up more than you’d expect. Bring on a helper for a few weeks? That might already count. This is one to get clear on before you hire your first person, not after an injury happens on site.
What Most Contractors Miss
- Commercial auto coverage for the truck hauling your tools and materials
- Tools and equipment coverage, since general liability typically doesn’t cover your own stolen or damaged gear
- Builders risk coverage if you’re working on new construction or major renovations
- Additional insured requirements written into your contracts, which some GCs require before they’ll even sign you on
A Quick Gut Check
If you’ve never actually sat down and mapped your coverage against what your contracts require, that’s worth doing before your next job, not during a dispute over who’s responsible for what. Avalue Insurance works with contractors across Centennial, CO to make sure nothing’s missing from that list. Check out our contractors insurance page or give us a call to walk through your specific situation.
