If you own a small business in Colorado and use a vehicle for work, you may need commercial auto insurance. Whether you’re a painter in Pueblo, a landscaper in Denver, or a roofer in Colorado Springs, having the right coverage helps protect your business, your team, and your future.
In this blog, we’ll explain the Colorado car insurance requirements for business vehicles, the minimum coverage limits, and why having more than the minimum might be a smart choice.
What Is Commercial Auto Insurance?
Commercial auto insurance is a policy that covers vehicles used for business purposes. If you drive a car, van, or truck for work (not just commuting), you’ll likely need this type of insurance.
This includes:
- Contractors and construction workers
- Delivery drivers
- Mobile services (like locksmiths or HVAC techs)
- Landscapers and gardeners
- Painters and remodelers
If your personal vehicle is used for business, your personal auto insurance might not cover you in case of an accident. That’s why having commercial coverage is essential.
What Are the Minimum Coverage Limits in Colorado?
In Colorado, the state requires all drivers, including businesses, to carry liability insurance. This helps to cover injuries or damage you cause to other people in a covered accident.
The minimum liability limits for commercial vehicles in Colorado are:
- $25,000 for bodily injury per person
- $50,000 for bodily injury per accident (if more than one person is injured)
- $15,000 for property damage
This is often written as 25/50/15.
These are the same minimums required for personal auto insurance. However, commercial vehicles are usually exposed to greater risk, so many business owners choose higher limits or additional coverage.
What If You Drive a Larger Vehicle?
If your business uses heavy trucks or vehicles transporting goods, you may need higher coverage. You might also need to file a Form E with the state proving you meet financial responsibility requirements.
If you’re unsure what category your vehicle falls under, a licensed insurance agent can help answer your questions.
Call us today at 1-800-718-5127!
Why Minimum Coverage Might Not Be Enough
While the 25/50/15 limits meet the legal requirement, they might not fully protect your business. Imagine this:
You’re driving to a job site in your work van and accidentally cause a crash. If the total medical bills and vehicle damage exceed your limits, your business could be responsible for the rest out-of-pocket.
That’s why many small business owners choose higher liability limits or add extra protection like:
- Collision and comprehensive helps to cover your own vehicle
- Uninsured/underinsured motorist coverage
- Medical payments coverage or the people inside of your vehicle
- Hired and non-owned auto insurance (for borrowed or employee-owned vehicles)
Do I Need Commercial Auto Insurance If I'm Self-Employed?
Yes. Even if you’re a sole proprietor or a single-person LLC, you’ll still need commercial coverage if your vehicle is used for work. This includes:
- Carrying tools or equipment
- Driving to job sites
- Making deliveries
- Transporting employees to jobsites
It’s better to be safe and legally covered than risk a fine—or worse, a lawsuit.
How Can I Get Business Insurance in Colorado?
Our agents specialize in business insurance in Colorado, especially for small business owners in Denver, Pueblo, and Colorado Springs. We speak your language and understand your needs.
We’ll help you:
- Understand what coverage
- Compare rates from multiple insurance carriers
- Stay compliant with Colorado’s insurance laws
- Protect your business with the right policy at the right price
Final Thoughts
If you use a vehicle for work, commercial auto insurance in Colorado isn’t just a legal requirement—it’s smart business. Start with the state minimums, but don’t stop there. The right coverage keeps your business moving forward.
Need help choosing a policy? Call us today at 1-800-718-5127 or get a free quote online. Our team is ready to help you in English or Spanish.
Disclaimer:
Seguros Avanza is the brand name for Infinity Insurance Agency, Inc. This material is for general informational purposes only. The content is provided on an “as is,” and “as available” basis without representation or warranty of any kind whatsoever. All statements are subject to the terms, exclusions and conditions of the applicable policy.
