What Type of Specialized Insurance Should my Business Have?

Insurance is essential for all business owners in order to protect the business financially in case of property damage, employee injuries, or customer lawsuits. However, many industries have additional liability concerns that can lead to unmanageable costs if the business owner doesn’t have the right insurance coverage.

Specialized business insurance

Specialized business insurance offers industry-specific coverage to protect businesses against general and specific risks.

What Is Specialized Business Insurance?

All types of businesses need insurance policies like general liability coverage, commercial property coverage, and workers’ compensation coverage. These policies protect businesses from financial disaster in the case of property damage, lawsuits, and on-the-job injuries. However, many companies also have industry-specific challenges and liabilities.

Specialized business insurance can protect against both industry-specific risks and general business concerns.

Insurance for Specific Industries in Colorado

In addition to the risks every business needs to consider, most industries have specific risks requiring specialized insurance coverage. These are some examples of industries in Colorado that can benefit from specialized insurance policies.

Alarm Contractors

Insurance can protect businesses in the case of any mistakes or oversights during installation, property damage, and other concerns. Businesses that install and monitor alarm systems need coverage in case of any incidents on their clients’ properties.

For example, if a problem with the alarm system prevents it from going off during a break-in, the customer might sue the alarm contractor.

Nonprofit Organizations

Nonprofits deal with the same litigation risks as for-profit businesses, like employment issues, as well as problems with donors and government regulation concerns. However, nonprofit organizations usually work with tighter budgets, making insuring against these risks more difficult.

Nonprofit-specific coverage is designed to provide the protection these organizations need at a fair price.

Educational Facilities

From elementary schools to universities, schools need insurance coverage that protects the institution in case of property damage, student injuries, faculty employment issues, and other problems. Specialized insurance policies can be tailored to cover both private and public schools that work with any age level.

Healthcare Facilities

Because they provide such vital, high-stakes services, healthcare facilities are especially vulnerable to lawsuits. Professional liability coverage can protect healthcare providers in the case of a malpractice lawsuit.

Many healthcare jobs are mentally and physically strenuous, which means it’s crucial for these facilities to have the right workers’ compensation coverage. Adding to the complexity, healthcare facilities can range from small nonprofit clinics to large hospital networks. Customized specialty insurance can fit the needs of any practice.


Colorado farmers and ranchers depend on their animals’ health and safety for their income. Livestock insurance can cover the costs involved when animals are injured or killed in an accident or natural disaster, like a fire or severe storm.

Depending on the particular farm or ranch’s needs, it can also cover livestock while the animals are in transit or another location.

Law Firms

In addition to the property and general liability coverage any business needs, lawyers also need professional liability insurance in case of a malpractice claim. Clients unhappy with case outcomes may file a malpractice lawsuit claiming their attorney was negligent in handling their case.

Whether these claims are legitimate or not, they can create significant costs for the law firm. Legal liability and professional liability coverage can protect firms in these situations.

Printers and Publishers

Printers and publishers need expensive equipment to get information out to customers or the public quickly and accurately. Specialized insurance for these businesses can include coverage for corrections of work, which can help with the costs involved in reprinting materials after an error.

Depending on the type of information a business publishes, it might also need errors and omissions coverage or an umbrella policy to protect against potential libel claims.


Arborists need to follow industry-specific regulations, and they often have expensive tools and equipment, along with other specific business risks. Specialized insurance can cover these businesses in case they’re liable for a regulatory issue. These policies also cover equipment. Since trees are valuable and vulnerable to environmental damage, they also need to be included in the insurance policy.

Employees who deal with herbicides and pesticides could be more likely to file a claim against their employer. Insurance can be customized to cover these claims as well.

Craft Breweries

Craft breweries have relatively large-scale manufacturing and distribution operations despite being small businesses. Brewery insurance can cover machinery, employee safety, and general liability issues. It can also protect the business in case of a liquor liability claim. This scenario becomes especially relevant when the brewery serves its beers or ciders on site.

Limousine Services

Car and limousine services need to make sure that their vehicles are fully insured in case of theft, damage while sitting in the garage, or damage during a crash. If they don’t have the right coverage, limousine companies could be responsible for major costs in any of these situations. Companies also need bodily harm coverage in case either a customer or a third party suffers an injury during an accident.

Specialized business insurance isn’t limited to these industries. Many more fields can benefit from customized coverage to address their unique risks. Talking to an insurance professional can help business owners get the specific coverage they need.


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