By Audience: GCs
Insurance · Colorado
7 min read · Updated September 2026

Colorado Subcontractor Insurance Requirements: What GCs Must Require from Subs

What coverage general contractors should require from subcontractors on Colorado job sites — where workers' compensation is mandatory, an uninsured sub's crew can become the GC's, and state law limits how far additional insured coverage reaches.

The most common mistake: letting a sub with no workers' comp on site because "it's just the owner and a helper." In Colorado, a business that contracts out work is the statutory employer of an uninsured sub's workers — the helper is on your policy.

Quick answer

Colorado sets no general liability minimum for private construction, so GCs set it in the subcontract — typically $1M per occurrence / $2M aggregate general liability, $1M commercial auto, workers' compensation with employer's liability, and an umbrella on larger jobs. Workers' comp is mandatory for employers with one or more employees, and under C.R.S. 8-41-401 a GC is liable for comp benefits to an uninsured subcontractor's workers. Colorado's anti-indemnity statute also limits additional insured coverage for the GC's own negligence on construction contracts.

Standard insurance requirements for Colorado subcontractors

Apart from workers' comp, these are commercial standards set in the subcontract. Your prime contract with the owner often sets the floor you pass down.

Coverage Typical minimum What it covers
Commercial General Liability $1M per occurrence / $2M aggregate Bodily injury and property damage from the sub's operations and completed work
Workers' Compensation Statutory — required by law Medical costs and lost wages for the sub's injured employees
Employer's Liability $500K–$1M each accident / disease Employee injury suits outside WC; part of the WC policy
Commercial Auto $1M combined single limit Vehicles used in the sub's operations
Umbrella / Excess $1M–$5M, by project Limits above GL, auto and employer's liability

Workers' compensation — mandatory in Colorado

Colorado requires workers' compensation for nearly every employer with one or more employees, full- or part-time. The Division of Workers' Compensation enforces it, with fines and cease-and-desist orders for employers without coverage.

Why an uninsured sub is the GC's problem

Under C.R.S. 8-41-401, a business that contracts out any part of its work is treated as the statutory employer of the contractor's workers, whatever their number. If the sub insures its own comp liability before starting, the GC is protected from contribution claims; if it doesn't, the GC is liable for the benefits. Confirming a sub's workers' comp is how a Colorado GC keeps its own policy out of the sub's claims.

Sole proprietors

A sole proprietor with no employees need not cover themselves, but the moment a worker joins them on your site, coverage is required. Get the sub's crew plan in writing, and consider requiring a higher GL limit from solo subs.

Additional insured, waivers and Colorado's anti-indemnity law

  • Additional insured status for your company (and the owner, where required) on the sub's GL and auto, on a primary and non-contributory basis, for ongoing and completed operations — see CG 20 10 vs CG 20 37.
  • Waiver of subrogation in your favor on GL, auto and workers' comp.

Colorado limits what those endorsements can do. C.R.S. 13-21-111.5(6) voids construction-contract terms that require a sub to indemnify the GC for the GC's own negligence — and to the same extent, terms requiring additional insured coverage for it. Additional insured status still protects the GC for the sub's share of a loss; it just doesn't shift the GC's own negligence. Have your broker or counsel review the insurance exhibit with that in mind.

Adjusting minimums by project type

Project type Suggested GL Suggested umbrella
Residential remodel / small commercial $1M / $2M Often not required
Mid-size commercial ($1M–$10M) $1M / $2M $1M–$2M
Large commercial / industrial ($10M+) $2M / $4M $5M+
High-hazard trades (demolition, roofing, structural) $2M / $4M $5M+

Collecting and tracking certificates of insurance

  • Collect a current certificate before work begins, and check the workers' comp line first.
  • Track each policy's own expiration date — GL, auto and workers' comp rarely renew together.
  • Check state and local licenses alongside the certificate — see the Colorado license requirements.
  • Keep certificates where you can retrieve them in an audit or a claim.

How TrackMyVendor automates this

  • Every certificate is read on upload — carrier, policy numbers, each coverage row’s limits and its own dates — and measured against the minimums you set, so a missing WC line shows as short.
  • DORA electrical and plumbing licences are re-checked every day and shown beside the certificate.
  • Per-deadline reminders at 90, 60, 30 and 7 days go to your team and to the sub, with the upload link in the sub’s copy. Starter and above
  • The endorsement pages are read too — additional insured, waiver of subrogation, primary and non-contributory. Pro
See what AI parsing reads from a certificate

Collecting COIs from Colorado subs?

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Frequently Asked Questions

Is workers' compensation required for subcontractors in Colorado?
Yes for nearly every employer with one or more employees, full- or part-time. Under C.R.S. 8-41-401 a business that contracts out work is the statutory employer of an uninsured subcontractor's workers, so confirm each sub's coverage before it starts.
What is the minimum general liability insurance for a subcontractor in Colorado?
Colorado sets no statutory minimum for private construction contracts. Most GCs require $1M per occurrence and $2M aggregate, with higher limits for larger or higher-risk work, and flow down whatever the prime contract requires.
Do I need to be listed as additional insured on my Colorado sub's policy?
Yes. Require additional insured status by endorsement, on a primary and non-contributory basis, for ongoing and completed operations, with a waiver of subrogation. Colorado's anti-indemnity statute limits that coverage for your own negligence on construction contracts, so have your broker review the requirement.
Does my sub's COI tell me if they're licensed in Colorado?
No. A certificate of insurance confirms coverage only. Electricians and plumbers are licensed by DORA; general contractors, roofers and HVAC contractors are licensed locally. Check each separately.
How often should I collect updated certificates of insurance?
At the start of every project and at every policy renewal. Policies renew annually and not on the same date, so request renewals at least 30 days before each expiration.