Colorado has no statewide general contractor license, so a general contractor is licensed or registered by the city or county where the work happens, and those local governments typically require proof of workers comp and general liability to register. The statewide trade licenses, for electricians and plumbers, do not add a separate workers comp rule of their own; Colorado law already requires workers comp once you have any employees.
Who this is for: Colorado contractors getting or renewing a license or registration, and figuring out which pieces the state, the city, and their clients require.
The short version
- General contractors are licensed locally. There is no statewide general contractor license; cities and counties like Denver, Colorado Springs, and Boulder each set their own rules.
- Local registration often requires proof of coverage. Many municipal registrations ask for a certificate of workers comp and general liability.
- Electricians and plumbers are licensed statewide. The Colorado State Electrical Board and State Plumbing Board license those trades through the state.
- Workers comp follows the one-employee rule. Any contractor with even one employee must carry it (C.R.S. 8-44-101), license or not.
- Solo construction owners have a filing choice. A construction sole proprietor or partner with no other employees must carry comp or file a Rejection of Coverage.
What the license requires
Colorado splits contractor licensing between local governments and state trade boards. Workers comp is not a special license add-on; it is driven by whether you have employees.
| Requirement | What it is | When it applies |
|---|---|---|
| Local general contractor license or registration | Issued by the city or county where you work | Set by each local government; often requires proof of coverage |
| Statewide electrician or plumber license | Issued by the state trade board through DORA | Required to do that trade anywhere in Colorado |
| Workers compensation | Insurance for on-the-job injuries to your workers | Once you have any employee (C.R.S. 8-44-101) |
| General liability | Coverage for third-party property damage and injury | Not a state license rule, but commonly required by local registration and clients |
Workers comp and your headcount
Whether you hold a local registration or a state trade license, the workers comp rule is the same: Colorado requires it once you have any employees. So a contractor with even one employee needs a policy both because the comp statute requires it and because a local registration often asks for proof of it. A contractor working truly solo, with no employees, is not required by the comp statute to carry it, but in construction still has to either cover themselves or file a Rejection of Coverage, and clients and general contractors routinely ask for proof of coverage anyway. Because local rules vary, confirm the exact requirements with the city or county before you register.
Why contractors carry comp before they must
Two forces pull Colorado contractors into coverage early. First, the people who hire you, general contractors and commercial clients, routinely require proof of coverage before they let you on site, so a policy is often the price of the work. Second, if you act as a general contractor and hire subs, an uninsured sub can become your problem: because the law can treat you as the employer of that sub's crew (the 'statutory employer' rule), you can be made to pay comp to that sub's injured worker, then recover the premium from the sub. Collecting a current certificate from every sub, and carrying your own policy, is how contractors keep that exposure off their books.
A Boulder example
Illustrative, not a quote. An electrician in Boulder holds a state electrical license from the Colorado State Electrical Board and registers with the city to pull permits. With three employees, she also needs workers comp under Colorado law, so the trade license, the local registration, and the comp policy are separate pieces that all have to be in place. Before a framing sub starts on a remodel she is coordinating, she collects the sub's certificate of coverage, so an injury on that crew does not fall back on her policy. See our workers comp for electricians page.
Real questions Colorado owners ask
What insurance does a Colorado contractor license require?
It depends on the license. General contractors are registered locally, and cities and counties often require proof of workers comp and general liability. Workers comp itself is required once you have any employees.
Is there a statewide general contractor license in Colorado?
No. General contractors are licensed or registered by the city or county where they work, such as Denver, Colorado Springs, or Boulder, each with its own rules. Electricians and plumbers are licensed statewide.
Do I need workers comp for a Colorado contractor license?
If you have employees, yes, because Colorado requires it at your first worker. A truly solo contractor is not required to carry it by the comp statute, though local rules and clients often ask for proof anyway.
Who licenses electricians and plumbers in Colorado?
The Colorado State Electrical Board and the State Plumbing Board, through the Department of Regulatory Agencies, license those trades statewide, regardless of the size of the job.
I am a solo construction contractor. What do I have to do?
By the comp statute you are not required to cover yourself with no employees, but in construction you must either carry comp on yourself or file a Rejection of Coverage with the Colorado Division of Workers' Compensation.
Am I responsible for an uninsured subcontractor's injury?
You can be. The law can treat a general contractor as the employer of an uninsured sub's crew (the 'statutory employer' rule), so you can be made to pay comp to that sub's injured worker; collect a current certificate from every sub before work starts.
Does the local registration or the comp policy come first?
Line them up together. Many local registrations ask for proof of workers comp, so having the policy ready makes registering smoother, and you need the policy anyway once you have employees.
Why Colorado owners choose Morrow
- We shop the right market for you. In Colorado you buy workers' comp on the open market, where private insurers compete with the state-chartered fund, Pinnacol Assurance, which by law cannot turn away a Colorado employer, so we can shop your rate across carriers and still have Pinnacol as a guaranteed backstop for hard-to-place work.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Colorado guides
Every Colorado business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Colorado (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Do I need workers comp for 1099 contractors?
- What workers comp does not cover
- Colorado electrician workers comp
This guide is general information, not legal advice. Colorado rules and penalty amounts can change, so verify current requirements with the Colorado Division of Workers' Compensation or a licensed advisor before you rely on them. Last updated: July 2026.