Best General LiabilityColoradoMoneyGeek found the best general liability insurance companies in Colorado by considering key factors like affordability, customer satisfaction, financial stability and the online quote process. Nationwide claimed the top spot based on high scores across these metrics. An average policy from this insurer costs $36 per month for LLCs with 20 employees and $35 per month for sole proprietors with no employees.
MoneyGeek also ranked companies on affordability, finding that Next offers the cheapest general liability insurance in Colorado for small business owners on a budget. General liability coverage from Next costs $26 per month for LLCs with 20 employees and $25 per month for sole proprietors with no employees.
Best General LiabilityColoradoBest General Liability Insurance in Colorado
Best Overall - Nationwide
Cheapest - Next
Best for Employers - Nationwide
Best for Sole Proprietors - biBERK
Best Overall General Liability Insurance in Colorado
MoneyGeek determined that the best general liability insurance company in Colorado is Nationwide, earning a MoneyGeek score of 89 out of 100. Customer satisfaction was the tie breaker between Nationwide and Next, which also earned a MoneyGeek score of 89 out of 100.
The table below shows our rankings of the companies we analyzed in Colorado with their average costs and MoneyGeek scores.
How was this MoneyGeek score calculated?
MoneyGeek’s Pick: Score: 89
4/5LLC Affordability
1/5Sole Proprietor Affordability
5/5Customer Satisfaction
4/5Financial Stability
3/5Online Quote Process
PROS
High customer satisfaction and financial stability ratings
Cheaper than most competitors for LLCs
CONS
Highest average rate in Colorado for sole proprietors
Slow online quote system
Company Highlights
Nationwide’s general liability insurance has an excellent blend of affordability and service quality that made it our top choice in Colorado. The company is affordable for LLCs at roughly $36 per month but more expensive than all competitors for sole proprietors at $35 per month.
In terms of customer satisfaction, Nationwide received the lowest rate of complaints among all insurers in our comparison group. Its A+ (Superior) rating from AM Best also indicates that it is financially sound and capable of paying insurance claims.
Cheapest General Liability Insurance in Colorado
Next offers the cheapest general liability insurance in Colorado, with an average rate of $26 per month for LLCs and $25 per month for sole proprietors.
To rank companies in this category, we generated an “affordability” score that combines the monthly costs for sole proprietors and LLCs. As such, our winner may not have the lowest cost for both entity types.
How was this MoneyGeek score calculated?
MoneyGeek’s Pick: Score: 96
5/5LLC Affordability
4/5Sole Proprietor Affordability
0/5Customer Satisfaction
2/5Financial Stability
4/5Online Quote Process
PROS
Most affordable for LLCs out of six insurers
Third-cheapest for sole proprietors
CONS
Low financial stability score
Slow online quote system
Company Highlights
Next is the cheapest company for general liability insurance in Colorado. Of the six insurers in our study, Next offers the most affordable rate for LLCs at an average of $26 per month and the third-lowest rate for sole proprietors, averaging $25 monthly.
Next received an A- (Excellent) rating from AM Best, meaning it’s likely to meet its financial obligations, such as paying claims or paying off debts. However, the other companies we reviewed had even better AM Best scores. You can get a quote online from Next, but expect the process to take longer than with other insurance companies.
Best General Liability Insurance for Employers in Colorado
Colorado employers looking for general liability insurance may fare best with Nationwide, which received a MoneyGeek score of 94 out of 100. An average policy from this company costs $36 per month.
We based our rankings in this category on the average monthly cost for LLCs with 20 employees. Employee count is a significant factor affecting the cost of general liability insurance. Businesses with fewer than 20 employees will likely pay less than our average cost, and the opposite for more than 20 employees.
How was this MoneyGeek score calculated?
MoneyGeek’s Pick: Score: 94
4/5LLC Affordability
5/5Customer Satisfaction
4/5Financial Stability
3/5Online Quote Process
PROS
Receives fewer complaints than the average insurer
Superior ability to meet financial obligations
Second-cheapest insurer at $36 per month
CONS
Online quote application process could be faster
Company Highlights
Because of its affordable rates, quality service and strong financial stability rating, Nationwide is Colorado’s best general liability insurance company for employers. Its policies cost an average of $36 per month for LLCs with 20 employees, the second-cheapest rate in the state.
With Nationwide, employers are assured their businesses are financially protected from unexpected mishaps. The company often meets policyholders’ expectations based on the low rate of complaints it receives. Plus, paying claims is not an issue since Nationwide has superior financial strength.
Best General Liability Insurance for Sole Proprietors in Colorado
With a MoneyGeek score of 97 out of 100, biBERK provides the best general liability insurance in Colorado for sole proprietors. Its policy cost is approximately $23 per month.
We ranked companies based on their average costs for sole proprietors with no employees. Those in riskier industries like construction may pay more for general liability insurance.
How was this MoneyGeek score calculated?
MoneyGeek’s Pick: Score: 97
5/5Sole Proprietor Affordability
4/5Customer Satisfaction
5/5Financial Stability
3/5Online Quote Process
PROS
Financially strong
High customer satisfaction
Second-most affordable insurer
CONS
Getting a quote online can take a long time
Company Highlights
In Colorado, sole proprietors may consider biBERK as their best option for general liability insurance. Its policies average $23 per month, cheaper than most competitors in our analysis.
biBERK has the financial strength you want to handle your claims. It received an A++ (Superior) rating from AM Best, the highest rating available. Additionally, it boasts strong customer satisfaction, receiving fewer complaints than the average insurer. This gives sole proprietors peace of mind regarding their insurance concerns and claims.
Do You Need General Liability Insurance in Colorado?
Although general liability insurance is not required by Colorado state law, it makes sense to purchase a policy to protect your business against financial loss due to liability claims from third parties. It provides coverage for:
- Third-party bodily injuries: General liability insurance helps cover medical costs if a customer sustains an injury at your business.
- Third-party property damage: General liability insurance pays for the cost of damages to someone else’s property caused by your business or employees.
- Personal and advertising injury: If someone sues your business or employees for libel, slander or copyright infringement, general liability insurance covers your legal expenses and damages.
Note that getting general liability coverage may be required to obtain business licenses or win contracts in certain industries.
In Colorado, businesses are required to purchase other types of business insurance, including workers’ compensation insurance if they have one or more employees. They are also required to get commercial auto insurance for company-owned vehicles with at least the following limits:
- $25,000 per person for bodily injury liability
- $50,000 per accident for bodily injury liability
- $15,000 per accident for property damage liability
SMALL BUSINESS RESOURCES IN COLORADO
The Colorado Small Business Development Center Network and the Minority Business Office of Colorado provide business consulting, training and education through the Small Business Accelerated Growth program. The program is offered in English and Spanish and is available to Colorado businesses with at least one year in operation and 19 or fewer employees.
How Much Is General Liability Insurance in Colorado?
The average cost of general liability insurance in Colorado is $48 per month for LLCs with 20 employees and $27 per month for sole proprietors with no employees.
Note that these rates are for a policy with a $2 million aggregate limit, a $1 million occurrence limit and a $0 deductible. The aggregate limit refers to the maximum amount an insurance provider can pay out for claims during a policy period, whereas the occurrence limit is the maximum amount an insurer can cover per claim. The deductible is the amount that business owners have to pay out of pocket before insurance kicks in.
Factors That Impact General Liability Insurance Costs in Colorado
The cost of general liability insurance varies for each business based on these important factors:
Policy limits
General liability insurance includes the aggregate limit and the occurrence limit. The former is the total amount your insurer will pay out during the policy period, while the latter is the total amount your insurer will cover per claim. Typically, choosing higher limits will increase your premium.
Number of employees and payroll costs
How many employees you have has a significant influence on your premiums. Expect general liability coverage to be more expensive if you have a higher employee count.
Business location
Where your business is located can also affect the cost of general liability insurance. Companies charge higher rates to those running their businesses in more populated areas because they are more likely to file a claim.
Claims history
Business owners who are claims-free often use risk management strategies to avoid insurance claims. As such, they tend to have lower premiums than those who have filed claims before.
Industry
The industry your business is in plays a role in your premiums. For instance, being in an industry with high levels of risk, such as construction, can significantly impact the cost of general liability insurance. Browse the table below to see how the average cost of general liability insurance in Colorado changes based on the business industry.
Frequently Asked Questions About General Liability Insurance in Colorado
Your best option for general liability insurance will depend on your specific business needs and other factors. We answered some commonly asked questions to help you gain more valuable insight.
About Melissa Wylie
sources
- Colorado Division of Insurance. "Small Business Insurance." Accessed March 31, 2023.