NEXT has the best professional liability insurance in Colorado with affordable rates and dependable customer support. The Hartford ranks second, while Simply Business claims third place.
Professional Liability Insurance in Colorado
NEXT earns the highest score of 4.71 out of 5 in our analysis of the best professional liability insurance in Colorado.
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Updated: October 27, 2025
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Key Takeaways
NEXT is our top pick for professional liability insurance in Colorado, followed by The Hartford and Simply Business.
Your industry risk, client contracts, potential claim costs and budget determine the best Colorado professional liability insurance for you.
Assess your needs first, then compare quotes from multiple providers to find the best small business insurance to match your professional liability needs in Colorado.
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Industry
State
Best Professional Liability Insurance Companies in Colorado
| NEXT Insurance | 4.71 | $70 |
| The Hartford | 4.68 | $71 |
| Simply Business | 4.49 | $76 |
| Nationwide | 4.43 | $82 |
| Coverdash | 4.42 | $77 |
| biBERK | 4.40 | $79 |
| Progressive Commercial | 4.38 | $74 |
| Hiscox | 4.35 | $76 |
| Chubb | 4.25 | $88 |
| Thimble | 4.20 | $75 |
How Did We Determine These Rates and Rankings?
These rates are estimates based on MoneyGeek's proprietary analysis of small businesses with two employees across 79 major industries and should not be considered quotes. Your actual rate will differ based on business-specific factors. Contact insurers directly for accurate pricing tailored to your business needs.
LEARN MORE ABOUT BUSINESS INSURANCE
Professional liability coverage represents just one layer of protection for Colorado businesses. Understanding how different coverage types work together creates comprehensive financial security for small companies.
Best Colorado Professional Liability Insurance Reviews
Most professionals need professional liability insurance, but not all providers offer the same value. We've broken down what differentiates these top providers and why they made our list for Colorado businesses.
NEXT
Overall Best Provider
MoneyGeek Rating
4.7/ 5
4.7/5Affordability
4.7/5Customer Experience
4.8/5Coverage Options
Average Monthly Premium
$70These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability policies.Our Survey: Claims Process
3.9/5Our Survey: Recommend to Others
4.8/5
The Hartford
Runner-Up for Best Provider
MoneyGeek Rating
4.7/ 5
4.7/5Affordability
4.6/5Customer Experience
4.7/5Coverage Options
Average Monthly Premium
$71These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability policies.Our Survey: Claims Process
4.5/5Our Survey: Recommend to Others
4.5/5
Cheapest Professional Liability Insurance Companies in Colorado
NEXT provides cheap professional liability insurance in Colorado at $70 monthly ($840 annually). The Hartford offers another budget-friendly option at $71 monthly for business owners seeking reliable coverage.
| NEXT Insurance | $70 | $840 |
| The Hartford | $71 | $847 |
| Progressive Commercial | $74 | $893 |
| Thimble | $75 | $906 |
| Simply Business | $76 | $910 |
| Hiscox | $76 | $915 |
| Coverdash | $77 | $929 |
| biBERK | $79 | $950 |
| Nationwide | $82 | $983 |
| Chubb | $88 | $1,056 |
How Did We Determine These Rates?
These rates are estimates based on MoneyGeek's proprietary analysis of small businesses with two employees across 79 major industries and should not be considered quotes. Your actual rate will differ based on business-specific factors. Contact insurers directly for accurate pricing tailored to your business needs.
Average Cost of Professional Liability Insurance in Colorado
Professional liability insurance costs $77 monthly ($923 annually) in Colorado, $1 less than the national average. Home-based businesses pay around $36 per month, while mortgage brokers average $162. Your location, claims history and coverage limits also affect rates.
| Accountants | $144 | $1,729 |
| Ad Agency | $94 | $1,131 |
| Auto Repair | $82 | $980 |
| Automotive | $76 | $906 |
| Bakery | $53 | $631 |
| Barber | $43 | $519 |
| Beauty Salon | $48 | $577 |
| Bounce House | $58 | $697 |
| Candle | $42 | $499 |
| Cannabis | $124 | $1,490 |
| Catering | $79 | $954 |
| Cleaning | $55 | $664 |
| Coffee Shop | $61 | $729 |
| Computer Programming | $104 | $1,250 |
| Computer Repair | $63 | $757 |
| Construction | $75 | $901 |
| Consulting | $107 | $1,280 |
| Contractor | $63 | $754 |
| Courier | $49 | $593 |
| DJ | $44 | $532 |
| Daycare | $108 | $1,296 |
| Dental | $82 | $985 |
| Dog Grooming | $54 | $649 |
| Drone | $106 | $1,270 |
| Ecommerce | $61 | $732 |
| Electrical | $63 | $757 |
| Engineering | $103 | $1,232 |
| Excavation | $65 | $785 |
| Florist | $37 | $439 |
| Food | $107 | $1,281 |
| Food Truck | $58 | $698 |
| Funeral Home | $80 | $956 |
| Gardening | $40 | $480 |
| HVAC | $80 | $961 |
| Handyman | $54 | $643 |
| Home-based business | $36 | $436 |
| Hospitality | $73 | $881 |
| Janitorial | $50 | $596 |
| Jewelry | $60 | $721 |
| Junk Removal | $67 | $802 |
| Lawn/Landscaping | $50 | $601 |
| Lawyers | $147 | $1,764 |
| Manufacturing | $59 | $706 |
| Marine | $88 | $1,062 |
| Massage | $103 | $1,240 |
| Mortgage Broker | $162 | $1,943 |
| Moving | $81 | $972 |
| Nonprofit | $49 | $590 |
| Painting | $64 | $763 |
| Party Rental | $54 | $651 |
| Personal Training | $69 | $828 |
| Pest Control | $96 | $1,153 |
| Pet | $45 | $541 |
| Pharmacy | $57 | $684 |
| Photography | $63 | $755 |
| Physical Therapy | $93 | $1,119 |
| Plumbing | $88 | $1,050 |
| Pressure Washing | $57 | $686 |
| Real Estate | $125 | $1,504 |
| Restaurant | $80 | $966 |
| Retail | $55 | $661 |
| Roofing | $96 | $1,150 |
| Security | $99 | $1,192 |
| Snack Bars | $48 | $582 |
| Software | $96 | $1,148 |
| Spa/Wellness | $109 | $1,311 |
| Speech Therapist | $99 | $1,185 |
| Startup | $73 | $870 |
| Tech/IT | $96 | $1,152 |
| Transportation | $95 | $1,135 |
| Travel | $95 | $1,140 |
| Tree Service | $74 | $893 |
| Trucking | $110 | $1,325 |
| Tutoring | $60 | $720 |
| Veterinary | $116 | $1,386 |
| Wedding Planning | $78 | $932 |
| Welding | $76 | $915 |
| Wholesale | $61 | $736 |
| Window Cleaning | $62 | $745 |
How Did We Determine These Rates?
These rates are estimates based on MoneyGeek's proprietary analysis of small businesses with two employees across 79 major industries and should not be considered quotes. Your actual rate will differ based on business-specific factors. Contact insurers directly for accurate pricing tailored to your business needs.
How Much Professional Liability Insurance Do I Need in Colorado?
Professional liability insurance requirements differ by profession in Colorado. Health care providers and attorneys often face mandatory coverage rules, while other fields rely on client contracts and industry standards. Even without legal requirements, your coverage amount should match your risk exposure and clients' expectations. Many higher-risk professions carry $1 million per occurrence and $3 million aggregate coverage. Your coverage decision depends on three factors:
Your Industry Risk
Some industries in Colorado carry greater liability exposure than others, directly affecting your coverage needs. Risks in professional liability for accountants in smaller towns like Fort Collins or real estate agents in Grand Junction are lower than those for technology consultants in Denver's tech corridor and architects working on major developments. Your industry's typical claim frequency and severity should guide your coverage amount selection.
Client Requirements
Many clients and contracts in Colorado require proof of professional liability insurance at specific minimum limits before work can begin. Large corporations, government contracts, and major organizations like Denver International Airport often mandate $1 million to $2 million in coverage. Meeting these contractual requirements is essential for winning and maintaining business relationships across the state.
Potential Claim Costs
Your coverage should reflect the possible financial impact of a professional liability lawsuit in Colorado's legal environment. Minor errors might result in $10,000 to $25,000 in damages, while mistakes on larger projects could lead to $500,000 or more in damages plus $100,000 to $200,000 in legal defense costs. Consider the scale and financial impact of your typical projects when selecting coverage limits.
How to Get the Best Professional Liability Insurance in Colorado
Our step-by-step guide explains how to get business insurance in Colorado that matches your professional liability needs and budget.
- 1Evaluate Your Risk Exposure
Different businesses face varying liability risks across Colorado. A consulting firm typically needs lower coverage limits than an engineering company handling major projects. Review your industry standards and any coverage requirements specified in client contracts.
- 2Find a Local Agent
Choose an insurance agent familiar with the state's business environment and regulations and who understands how the cost of insurance for small business varies by location and industry. Local agents understand which coverage options work best for common regional industries. They can recommend policies that match your specific business needs and budget.
- 3Compare Multiple Insurance Quotes
Request quotes from at least three insurers, comparing cheap business insurance options and policy terms like exclusions and deductibles. A $1 million policy from one company may offer different protections than another.
- 4Research Insurer Reliability
When researching business insurance in Colorado, look beyond price. Check each company's AM Best financial rating and claims handling reputation before buying. Look for insurers with experience in your industry and positive professional reviews. Strong financial ratings indicate the company can pay claims when needed.
- 5Explore Bundling Opportunities
Many insurers offer discounts when you combine professional liability with other
types of small business insurance coverage, like general liability or business owner's policies. Bundling multiple coverages often reduces your total insurance costs while simplifying policy management. Ask agents about available package deals.
- 6Maintain Continuous Coverage
Professional liability insurance only covers claims filed while your policy is active. Never let coverage lapse, even when switching carriers. Purchase tail coverage or ensure your new policy includes prior acts protection to avoid dangerous coverage gaps.
How to Prevent Professional Liability Claims in Colorado
Professional liability claims often result from poor communication and vague client expectations rather than genuine mistakes. Small disputes can quickly escalate into expensive legal battles costing thousands. These proven strategies help Colorado businesses prevent conflicts and avoid costly claims.
Document Everything
Keep written proof of all client interactions, including email confirmations, scope changes and client approvals. This documentation prevents disputes by providing a clear record of what was agreed upon and when decisions were made.
Use Detailed Contracts With Clear Scope
Create contracts that clearly define your responsibilities, project timelines and specific deliverables. Outline what work is included and what falls outside the scope to avoid conflicts over additional services or unexpected costs.
Communicate Project Changes Immediately
Confirm all client-requested changes in writing before proceeding with any additional work. Document how these changes affect project timelines, budgets and final deliverables to prevent misunderstandings later.
Set Realistic Expectations Upfront
Be transparent with clients about project timelines, potential challenges and expected results from the start. Honest communication about your capabilities prevents overpromising and reduces the likelihood of client disputes.
Keep Detailed Project Records
Maintain thorough records of all work performed, decisions made and the reasoning behind your professional recommendations. This documentation demonstrates your diligence and provides strong protection if your work is questioned or challenged.
Colorado Professional Liability: Bottom Line
Professional liability insurance decisions in Colorado start with understanding your specific business risks and client needs. NEXT takes the top spot among providers, but your industry requirements, contract obligations, and budget matter more than rankings. Evaluate your coverage needs first, then connect with a local agent to compare options. The right policy delivers crucial financial protection when clients file claims against your business.
Colorado Professional Liability Insurance: FAQ
Colorado professionals commonly ask these questions about professional liability insurance. We've compiled clear answers below.
What does professional liability insurance cost in Colorado?
Professional liability insurance in Colorado costs between $70 and $88 monthly, based on provider data. Your actual premium depends on your industry's risk level, claims history, coverage limits and business location, making each policy unique to your specific circumstances.
Which professional liability insurance company is best in Colorado?
NEXT ranks as the top professional liability insurance company in Colorado, scoring 4.71 out of 5 for its affordable rates and strong customer service. The Hartford follows closely at 4.68, while Simply Business rounds out the top three at 4.49, providing solid coverage options for local businesses.
How much professional liability coverage do I need in Colorado?
Professional liability coverage amounts in Colorado depend on your industry's risk level, client contract requirements and potential lawsuit costs. High-risk professions like architects and consultants typically need higher limits, often $1 million or more, while lower-risk businesses may require less coverage.
Is there a difference between professional liability and E&O insurance in Colorado?
Yes. Professional liability and errors and omissions (E&O) insurance are two names for the same coverage. Both protect you from claims about mistakes in your services. Some industries prefer one term, but they work the same way.
How We Scored the Best Professional Liability Insurance Companies in Colorado
Professional liability claims can devastate small businesses in Colorado, potentially forcing them to close permanently. We evaluated insurers throughout the state to identify which companies provide the most reliable financial protection for businesses from new startups to established firms.
Our Scoring System
- Affordability (50%): Cost drives most small business insurance choices. We gave affordability the highest weight because finding quality coverage within budget constraints is essential for business survival.
- Customer experience (30%): Professional liability claims create significant stress for business owners. We assessed service quality through J.D. Power ratings and complaint records from the state's Department of Insurance.
- Coverage options (15%): We analyzed policy flexibility and exclusions to ensure they address the specific needs of local professional service providers.
- Financial strength (5%): AM Best financial ratings confirmed each insurer has sufficient resources to pay professional liability claims when they occur.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
sources
- Alliance Health. "Provider Insurance Requirements." Accessed November 1, 2025.