Obtaining business liability insurance in Colorado protects your business. And its associated properties from lawsuits arising from property damage and bodily injury. But, do you need this type of insurance policy for your Colorado-based business? Find out in this article!
What is Business Liability Insurance?
Business insurance is a policy that protects business owners from property damages. Bodily injury to both employees and customers, and stolen properties. The coverage extends to the business-owned vehicles in Colorado. Lawsuits filed by clients over the business’s mistakes. And protects the company from cyberattacks.
Does My Business Need the Liability Insurance in Colorado?
Now that you understand the relevance of the policy, you may be wondering if you need one? What is the stands of Colorado have to say as it pertains to getting business liability insurance?
According to the Colorado Department of Regulatory Agencies. Division of Insurance (DOI), small business owners must get coverage.
According to the publication, the coverage protects both the businesses and the customers. In the case of the customers, the coverage mandates the insurance provider to offset the medical bills. And or pay damages if a lawsuit is involved.
Yes, need to to get business liability insurance coverage to protect your business in Colorado. And to reduce the financial expenses arising from lawsuits.
What Type of Business Liability Insurance in Colarado Does My Business Need?
According to the DOI, small business owners operating the venture need to get specific coverages to protect the business.
Here are some business liability insurance policies required of Colorado business owners.
General Liability Insurance
This is the most popular of the business liability insurance coverages. It is for business owners in Colorado who want to protect their business from bodily injury. Note that this policy covers damages of any kind to third parties, i.e., people who don’t work for your business.
Here are some of the scenarios that may prompt the use of the general liability insurance:
Third-Party Property Damage
If your business causes damages to other people’s property, it would be sued. The general liability insurance covers the damages and lawsuit expenses when company is sued.
A third party can claim to be libeled or had the reputation slandered by an advert made by your business. It is possible for the third party to claim a copyright infringement. Especially if your business uses the person’s creative work without permission.
Note: Because of how relevant this coverage is, some clients may need you to provide evidence before signing contract with you.
Commercial Property Insurance
This type of insurance also known as Business Property Insurance. It protects the business from both losses and physical damages to its properties. Also, the coverage covers the expenses for replacing damaged or lost equipment.
It is imperative to get this business liability insurance coverage. If you intend to run a physical store or have an offline branch for your business.
Commercial property insurance covers expenses for business property-related damages and losses. Though there are some exceptions.
First, your business may not be liable to make a claim if its business activities or property is destroyed by acts of war.
Second, the business may be unable to make claims in the case of some environmental hazards. Such as earthquakes and windstorms affect the operations of the business.
Cyber Liability Insurance
This type of liability insurance covers a Colorado business from cyberattacks. The coverage is for protecting the business’ online platforms from hackers. Or having the information therein tampered with.
This type of coverage also known as Data Breach Insurance Coverage. In some cases, the insurer may have to cover the expenses if the business it provides insurance for is sued for a data breach.
It may also be in the insurer’s place to pay for the restoration of data. And the enhanced protection of the data of the affected customers. Provided the business owner has the policy and is up-to-date with paying the premiums.
Commercial Umbrella Insurance Coverage
The traditional business liability insurance policy doesn’t cover all aspects of your business. You may get commercial auto insurance, which is exclusive to your company’s vehicles.
Then, if your business causes harm to someone or the person’s property, there may be no way to avoid settling the bills from your business accounts.
This is the reason the Division of Insurance (DOI) provided the Commercial Umbrella Insurance Coverage.
This type of insurance policy is an “added layer of protection”. That covers your business from extra financial expenses.
It provides Liquor Liability Insurance (if your business deals in liquor). It also covers expenses arising from Non-Owned aircraft, in the case that your business hires or charters an aircraft and it gets bad alone the line.
Commercial Auto Insurance
Business liability insurance is for owners that want to protect their business-owned vehicles . The damages include direct and indirect damages. Either to the company-owned vehicles or that of a third-party/someone else.
The policy cover the damages caused by weather, theft, and vandalism of the biz vehicle
Lender Required Insurance
This type of business liability insurance in Colorado is for small businesses in need of a loan. The business owner is needs to present evidence of holding the policy before a loan provider.
Note: The coverage covers the loans obtained for purchasing equipment for the business. Payment for company-owned vehicles. Or acquiring property for expansion are also part of the policy.
Business Liability Insurance in Colorado-Conclusion
The DOI of the Colorado Department of Regulatory Agencies. Mandated small businesses operating in the state to get the necessary coverages. Commercial auto insurance, property insurance, and general liability insurance are the most popular.
If you are looking to protect your business all-around, consider adding the Business Owner’s Policy. And Commercial Umbrella Insurance for holistic business insurance in Colorado.