Question 1

How much does restaurant insurance cost in Colorado?

Accepted Answer

Colorado restaurant insurance typically costs $2,500–$8,500/year. A small Denver café with 5 employees: $2,500–$4,000/year. A full-service restaurant with 20 employees and a bar: $5,000–$8,500/year. Mountain resort restaurants pay 15-25% more due to seasonal staffing and property risks. Workers' comp is mandatory for all employers at $1.80–$3.20 per $100 of payroll.

Question 2

Is workers' comp required for all Colorado restaurants?

Accepted Answer

Yes — Colorado requires workers' compensation for all employers with one or more employees, with no exceptions for small restaurants. This is stricter than neighboring states like Texas (optional) or Georgia (3+ employees). Failure to carry coverage is a criminal offense. Restaurant classification codes typically cost $1.80–$3.20 per $100 of payroll in Colorado.

Question 3

Do Colorado restaurants need liquor liability insurance?

Accepted Answer

Colorado's Dram Shop Act creates significant liability for restaurants serving alcohol. There is no cap on damages, and claims can be brought by any person injured by an intoxicated patron. Liquor liability insurance is not legally mandated but is effectively required — most landlords and licensing authorities require it. Coverage costs $900–$2,800/year in Colorado.

Colorado Restaurants Insurance | RISKX