What type of insurance must a dealership have in Colorado?

In Colorado, a dealership is required to have liability insurance. This type of insurance is crucial as it protects the dealership against claims arising from injuries or damages caused by their operations, including accidents involving vehicles sold or serviced at the dealership. Liability insurance covers legal costs and any settlements that may arise from lawsuits, ensuring that the dealership can operate without the added stress of potential financial losses due to unforeseen incidents.

While property insurance is useful for protecting physical assets such as buildings and inventory, liability coverage is specifically mandated for dealerships to ensure they are adequately protected against third-party claims. Health insurance, although important for employee welfare, is not a requirement specific to the dealership's operations. Comprehensive insurance, typically referring to a type of auto insurance, does not pertain to the insurance that a dealership must have for its business functions. Thus, liability insurance is the essential coverage that ensures the dealership complies with legal requirements and protects its financial interests.