# Colorado contractor insurance requirements

> What Colorado law says about workers' comp, contractor license insurance and indemnity clauses, and what to check on a contractor COI for a project there.

Reviewed Oct 28, 2026 by Forsured. Source: https://forsured.ai/coi-requirements/colorado/

## The short version

- Workers' comp required at: 1 employee
- License insurance minimum: No statewide minimum
- Anti-indemnity statute voids: Own negligence, even in part; reaches additional insured

## Workers' comp in Colorado

All Colorado businesses with employees must carry workers' comp, whatever the headcount, including part-time workers and family members.

Agency: [Colorado Division of Workers' Compensation](https://cdle.colorado.gov/dwc)

## Contractor licensing and insurance

We found no statewide general liability minimum tied to a general contractor license. Colorado has no statewide general contractor license. Cities and counties can set their own licensing and insurance rules, so check where the project is.

## Indemnity and additional insured clauses

Colorado's anti-indemnity statute (Colo. Rev. Stat. § 13-21-111.5) voids construction contract clauses that make a contractor indemnify another party for that party's own negligence, even in part. Clauses limited to the contractor's own share of fault generally hold up. The statute also reaches insurance: a contract can't use an additional insured requirement to get coverage for the other party's negligence that the indemnity rule forbids.

## What to check on a contractor COI for a Colorado project

1. **Workers' comp.** Nearly every contractor with employees needs it in Colorado. A contractor with a crew and no workers' comp on its COI is a gap. For an out-of-state contractor, confirm Colorado is listed on the workers' comp policy.
2. **General liability.** Colorado doesn't set a statewide floor for a general contractor license, so your project requirements set the bar. Compare each limit on the COI with what the contract asks for.
3. **Additional insured.** In Colorado, the anti-indemnity statute also limits what an additional insured requirement can do. Ask your broker or attorney which wording holds up, then check that the endorsement on file matches it.
4. **Dates.** Every policy should run through the end of the job. A COI only shows coverage on the day it was issued, so check again at each renewal.

## Common questions

### Do contractors need workers' comp in Colorado?

All Colorado businesses with employees must carry workers' comp, whatever the headcount, including part-time workers and family members.

### Does Colorado require contractors to carry general liability insurance?

We found no statewide general liability minimum tied to a general contractor license. Colorado has no statewide general contractor license. Cities and counties can set their own licensing and insurance rules, so check where the project is.

### Can a Colorado construction contract make a contractor cover another party's negligence?

Colorado's anti-indemnity statute (Colo. Rev. Stat. § 13-21-111.5) voids construction contract clauses that make a contractor indemnify another party for that party's own negligence, even in part. Clauses limited to the contractor's own share of fault generally hold up. The statute also reaches insurance: a contract can't use an additional insured requirement to get coverage for the other party's negligence that the indemnity rule forbids.

## Sources

1. [Division of Workers' Compensation](https://cdle.colorado.gov/dwc), Colorado Department of Labor and Employment
2. [Anti-Indemnity Statutes in All 50 States (2023)](https://grsm.com/wp-content/uploads/2023/10/Anti-Indemnity-Statutes-2023.pdf), Gordon Rees Scully Mansukhani, 2023
3. [Another State Joins List of "Anti-Additional Insured" States](https://blogs.duanemorris.com/constructionlaw/2012/01/05/another-state-joins-list-of-anti-additional-insured/), Duane Morris Construction Law Blog, 2012
4. [State Workers' Compensation Officials](https://www.dol.gov/agencies/owcp/wc), U.S. Department of Labor

General information, not legal advice. Confirm with the state agency, your broker or your attorney.

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Forsured: construction insurance compliance software. https://forsured.ai · hello@forsured.ai