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.
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.
In this guide
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
Collecting COIs from Colorado subs?
Everything above is a check you can run by hand. This is what it looks like when it runs itself.
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- Your first 25 subs, no credit card
- Subs upload certificates, licences and W-9s through a one-time link — no account, no app
- Every certificate read automatically: coverage rows, limits and each policy’s own dates
- Contractor licences checked against the state board’s own records
- A Monday summary of everything expired or expiring
Per-deadline alerts at 90, 60, 30 and 7 days, sent to your team and to the sub, start on Starter. Compare plans
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