Insurance Needs for Colorado Business Owners

There are few areas of the country that are growing faster than Colorado. From Denver’s thriving metropolis to the many tourist areas in ski country, it’s becoming a major hub for new businesses and those looking to expand. With many industries thriving here, it’s important to be prepared before you enter the business sector.

Denver’s workforce attracts both long-time residents and newcomers to the state attracted by its thriving economy. If you’re considering opening a business here, make sure your investment is protected. Here are some of the insurance types you should consider before opening day.

Professional Liability Insurance

If your business will be providing a service, you’ll want to make sure you’re covered for any mistakes you or your employees might make. This is also known as errors and omissions insurance, and it covers your associated costs and settlements or judgments when facing a lawsuit for negligence. How much of this insurance you’ll need will depend on your business, but no business is foolproof. You’ll want to be covered to avoid a potentially devastating lawsuit or legal costs, so be sure to research the best errors and omissions insurance in Colorado.

Property Insurance

Unless you’re a fully mobile business working from home, you’ll want to cover your most valuable asset: your place of business. Property insurance will cover not only your office or other workspaces but any equipment or valuable materials you store within it. Make sure to check what your policy covers before signing on. All policies generally cover theft and fires, but natural disasters may be a case-by-case question, and you don’t want to be caught without needed coverage.

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Workers’ Compensation Insurance

This should be the first type of insurance you get squared away for one simple reason: it’s illegal to operate your business without it. Workers’ compensation is required in Colorado for every business with at least one employee, so unless you’re running a one-person show, make sure your employees are covered. This insurance will cover the medical costs and other associated costs for an injury suffered on the job. Still, it also has a benefit for you—in most cases, by accepting workers’ compensation benefits, an employee agrees not to sue their employer.

Product Liability Insurance

Similar to errors and omissions insurance, this insurance protects you from liability. The focus here is on businesses that produce products to be sold. If a product you sell is found to be faulty, unsafe, or otherwise not suitable for sale, you could be held liable in court and face costly legal fees or a devastating judgment. This will cover your costs and settlements or judgments up to an agreed point. It’s especially important for major manufacturers, who have many points where something could go wrong in the design or manufacturing process.

Car Insurance

This is one type of insurance that often gets overlooked, and it may be mandated if your business does driving or delivery. If your employees drive their own cars as part of the job, make sure their insurance is up to date, but if they’re performing direct services for the business or using company-owned vehicles, you’ll want to have business coverage. General liability insurance often doesn’t cover automotive-related accidents, and even a small fender-bender when on the job can be costly. Each car will generally need to be insured, but lower rates may be available for companies with a large fleet.

Cyber Insurance

The internet is becoming a larger part of many businesses, with some conducting all their business solely online. And with this new frontier come new risks, including data breaches, hacking, and denial-of-service attacks. A hack can be costly to fix, so make sure you have this type of insurance to pay for expert help and any settlements if customer security or data is compromised. Not all businesses need this, but it’s highly recommended if you’re taking payment or collecting customer data over the internet.

Business Owner’s Insurance

If you have all the other types of insurance, you may not need this one, but you might want to consider getting it first. That’s because this combines all the above insurance policies into one convenient package that’s usually a better deal for the business owner. It’s easy to customize packages to fit your business’s needs, and it’s easier to manage your insurance when it’s all coming through a single provider.

Cover Your Bases

Some of these insurance types might not seem immediately essential, but you’d be surprised. Even the most careful business can find themselves facing an unexpected lawsuit or costly repairs. Having a robust insurance package is the best way to protect yourself, your employees, and your investment in your business.

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