Restaurant Insurance in Colorado
The policies a Colorado restaurant, bar, food truck, or catering operation needs — what the state requires, what's strongly advised, and what it costs.
Reviewed by J. Robert Smith, Licensed Insurance Agent (NPN 10378680). Last updated .
In Colorado, a restaurant's core program is general liability, a property or business-owner's policy (BOP), and commercial auto for any delivery. Workers' compensation is mandatory once you hire staff, and dram-shop law exposes any alcohol-serving business, so liquor liability is strongly advised. This hub compares Colorado's workers' comp and liquor-liability rules and cost alongside the coverages every restaurant and bar should carry.
- Workers’ comp
- Required once you hire staff
- Liquor liability
- Dram-shop law applies — strongly advised
- Dram-shop law
- Yes
- Suggested liquor limits
- $1M/$2M; bars and nightclubs often $2M/$4M
Workers’ compensation in Colorado
Yes. Colorado requires workers' compensation for every business with at least one employee, full- or part-time, from day one—no small-employer exemption applies. Restaurant owners who are sole proprietors, partners, or LLC members may exclude themselves, but all staff must be covered. Uninsured employers face steep daily fines and cease-and-desist orders.
Full Colorado workers’ comp guide — thresholds, exemptions, and rates →
Liquor liability & dram-shop law in Colorado
Colorado’s Dram Shop Act, C.R.S. § 44-3-801, imposes liability on a licensee only if it “willfully and knowingly” sold or served alcohol to a visibly intoxicated person or someone under 21 who then caused injury. Total liability is capped (inflation-adjusted) at about $465,730 for claims accruing in 2026–2027, and suit must be filed within one year. Insurance is not statutorily mandated.
Full Colorado liquor-liability guide — the statute, limits, and cost →
Coverages every Colorado restaurant should weigh
- General liability
Third-party slip-and-fall and property-damage claims — the foundation policy.
- Business owner’s policy (BOP)
Bundles general liability with property coverage for your building, equipment, and contents.
- Commercial property
Kitchen equipment, tenant improvements, signage, and inventory.
- Commercial & hired/non-owned auto
Delivery, catering runs, and errands in owned or employee vehicles.
- Employment practices (EPLI)
Harassment, discrimination, and wrongful-termination claims from staff.
- Umbrella
Extra limits above your liquor, auto, and general liability policies.
Colorado regulators
Talk to an agent who insures food & beverage every day
A licensed commercial-lines agent who specializes in restaurants and bars will review your coverage, close the gaps that catch owners, and show you what a program actually costs — before anything is bound.