Key Takeaways
- Colorado follows a modified comparative negligence system with 50% bar for liability claims
- Joint and several liability applies to economic damages in Colorado
- Commercial general liability policies must comply with Colorado filing requirements
- Professional liability requirements vary by profession in Colorado
- Colorado has specific requirements for pollution liability disclosure
Last updated: January 2026
Colorado General Liability Insurance
Colorado has specific requirements for general liability insurance that agents must understand.
Modified Comparative Negligence
Colorado uses a modified comparative negligence system with 50% bar:
How It Works
- Fault is allocated among all parties
- Damages reduced by percentage of fault
- 50% bar rule: Cannot recover if 50% or more at fault
- Different from pure comparative negligence
Joint and Several Liability
Colorado applies joint and several liability in certain cases:
| Damage Type | Liability Rule |
|---|---|
| Economic Damages | Joint and several may apply |
| Non-Economic Damages | Pro rata based on fault |
Economic vs. Non-Economic Damages
| Type | Examples |
|---|---|
| Economic | Medical bills, lost wages, property damage |
| Non-Economic | Pain and suffering, emotional distress |
Commercial General Liability (CGL)
Colorado CGL policies must comply with state requirements:
Required Elements
- Occurrence vs. claims-made coverage clearly disclosed
- Coverage territory defined
- Limits per occurrence and aggregate
- Defense costs inclusion/exclusion
- Pollution exclusion with disclosure
Rate Regulation
Under Colorado's file-and-use system:
- Rates filed with DOI
- Can be used upon filing
- DOI can disapprove if excessive, inadequate, or discriminatory
Professional Liability
Colorado requires or regulates professional liability for various professions:
Professional Requirements
| Profession | Requirement |
|---|---|
| Attorneys | Disclosure if no coverage (varies) |
| Architects | E&O may be required for certain contracts |
| Engineers | E&O may be required for certain contracts |
| Medical Professionals | Malpractice requirements apply |
| Insurance Producers | E&O recommended |
Healthcare Professional Liability
Colorado has specific requirements for medical malpractice:
- Certificate of review requirements for lawsuits
- Damage caps (with constitutional considerations)
- Statute of limitations provisions
Pollution Liability
Colorado has specific pollution liability considerations:
Disclosure Requirements
- Pollution exclusion must be disclosed
- Environmental impairment liability options explained
- Underground storage tank coverage requirements
- Cleanup cost coverage options
Colorado Environmental Laws
- Federal CERCLA applies
- Colorado hazardous waste laws
- Site cleanup requirements
- Disclosure requirements for property transactions
Damages in Colorado
Punitive Damages
- May be available in cases of willful and wanton conduct
- Generally NOT insurable in Colorado (public policy)
- Exceptions may exist for vicarious liability
- Defense costs may be covered
Caps on Damages
Colorado has certain limitations on damages:
- Non-economic damage caps in certain cases
- Subject to constitutional challenges
- Varies by type of claim
Test Your Knowledge
What is the key feature of Colorado's modified comparative negligence system?
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D
Test Your Knowledge
In Colorado, are punitive damages generally insurable?
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B
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D