Colorado Subcontractor Insurance Requirements: What GCs Must Require from Subs

Standard Insurance Requirements for Colorado Subcontractors

Most general contractors in Colorado require subcontractors to carry four core coverages before they can work on a project. With the exception of workers' compensation — which Colorado mandates by law — these are commercial standards GCs set contractually to protect themselves from liability arising from their subs' work.

Workers' Compensation — Mandatory in Colorado

Colorado requires workers' compensation for nearly every employer with one or more employees, including part-time and most family members. Unlike Texas, there is no opt-out for private employers. The Colorado Division of Workers' Compensation enforces coverage, and construction is a closely watched industry.

What to require

• Require all subs to carry Colorado workers' compensation at statutory limits
• Require employer's liability at $500K / $500K / $500K or higher, usually bundled with the WC policy
• Confirm the WC certificate names the correct legal entity and covers the workers actually on your site
• Watch for misclassification — labeling employees as 1099 contractors to avoid WC is a recurring problem and a liability trap for the GC

Sole proprietors and exemptions

A sole proprietor with no employees may not be required to carry WC on themselves, but coverage is required the moment they put a worker on your site. For solo subs claiming an exemption, require employer's liability or a higher general liability limit to compensate, and document the exemption in writing.

Additional Insured and Waiver of Subrogation

The certificate of insurance alone is not enough. Two additional provisions belong in every subcontract and should be reflected on the COI:

Additional insured endorsement

Require that your company (and the project owner, where applicable) be named as an additional insured on the sub's CGL and auto policies. This gives you the right to make a claim directly under the sub's policy if their work causes a loss. Specify that the status applies on a primary and non-contributory basis, so the sub's policy responds before your own.

Waiver of subrogation

Require a waiver of subrogation on the sub's workers' compensation and general liability policies in favor of your company. Without it, the sub's insurer can pursue you to recover what they paid on a claim — even after settling with the injured party.

Adjusting Minimums by Project Type

The standard minimums above work for typical commercial projects. For larger or higher-risk work, adjust upward:

Your contract with the project owner usually sets a floor — whatever they require of you flows down to your subs. Read your prime contract before setting sub requirements.

Collecting and Tracking Certificates of Insurance

Knowing what to require is the easy part. Collecting COIs from every sub — and keeping them current as policies renew — is where most GCs fall behind. A COI that was valid at onboarding can expire three weeks into a six-month project with no one noticing.

• Collect a new COI before work begins, not after. Never let a sub on site without a current certificate on file.
• Verify the COI yourself — don't rely on the sub's broker alone. Confirm the WC line specifically, given Colorado's mandate.
• Track expiration dates. Set a reminder 30+ days before each COI expires to request a renewal.
• Store COIs somewhere you can retrieve them quickly — not in an email folder with no structure.

For larger rosters, use magic-link vendor onboarding to let subs upload their own certificates directly into your dashboard. Automated alerts notify you at 90, 60, 30, and 7 days before any COI expires, and per-project compliance views show exactly which subs are covered for each job.

You can also check each sub's Colorado license alongside their COI. Use the Colorado contractor license lookup →

Frequently Asked Questions

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