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Equipment Breakdown Insurance in Colorado

Colorado requires reporting of new and relocated boilers and of boilers taken out of service; a condemned or voluntarily decommissioned boiler is treated as new when returned to service. Keep that safety and recertification timeline separate from the insurance question, and ask how a covered breakdown’s repair, replacement and business interruption are handled. 1,2,3

What Is Equipment Breakdown?

Equipment-breakdown coverage can help repair covered machinery or building equipment after a mechanical or electrical failure. It fits businesses that depend on equipment to operate; check whether lost income, spoilage and utility failures are included. Read the national Equipment breakdown guide.

What to Watch for in Colorado

  • Report a new or relocated boiler

    Colorado requires owners or users to report the location of newly installed or relocated nonexempt boilers. Before moving a critical boiler, confirm the reporting, inspection and certificate steps and allow for any restart delay; separately confirm the insured location and equipment schedule with the broker. 1,2

  • Plan the return to service after a serious repair

    Colorado requires reporting a boiler taken out of service if it remains on the premises; a shutdown for routine maintenance or minor repair is excluded from that definition. A condemned or voluntarily decommissioned boiler is treated as a new boiler when returned to service, subject to applicable repair and reporting requirements. Ask what repair evidence and expected restart date you need for interruption planning. 1,2

  • If you self-inspect, verify the organization’s registration and records

    Colorado permits an owner-user inspection organization only under a registration process; it must use qualified personnel, retain signed inspection and repair records, report unsafe units and submit annual information. Confirm that any internal inspection program meets those rules. Do not treat a compliance record as proof of coverage for breakdown, lost income or extra expense. 1,2

Who Regulates Insurance in Colorado

Colorado Division of Insurance

The Division administers Colorado insurance laws and regulates insurers and insurance producers. You can search producer licenses through Colorado’s official DORA lookup and send insurance complaints to the Division. 4,5,6

Surplus-lines tax and stamping office

Reported tax rate: 3% of net premium When Colorado is the insured’s home state, its surplus-lines tax is 3% of taxable premium. The Colorado Surplus Lines Association says insurer or broker fees charged in connection with the placement are included in the tax base; federal or other-state taxes and examination fees are excluded. For multistate risks, a tax-sharing agreement may allocate premium tax to other states. 7,9,8

Providers With Documented State Licenses

No provider in Spot’s research documents both a state license record and this coverage line. This does not establish that providers are unlicensed. Check the regulator’s license lookup and confirm availability with a provider when requesting a quote.

Questions to Ask Before You Buy in Colorado

  1. Will you install, relocate or decommission a nonexempt boiler, and who will report it and obtain the required certificate before restart?
  2. If your company relies on its own inspection organization, is it registered and are unit-level inspection and repair records available?
  3. Does the quote address repair/replacement, extra expense and lost income separately, including the policy’s restoration period and any safety-shutdown conditions?

Equipment Breakdown in Colorado: FAQ

Does Colorado treat a boiler taken out of service like one still operating? 1

The owner must report a nonexempt boiler taken out of service if it remains on the premises, but a temporary shutdown for routine maintenance or minor repairs is excluded. A condemned or voluntarily decommissioned boiler is treated as new when returned to service. 1

Can a Colorado business inspect its own boilers? 1,2

A business may seek approval and registration as an owner-user inspection organization. The statute requires qualified personnel, records, reporting and other controls; confirm current registration and rule compliance. 1,2

Which Colorado boiler classes should I check in my equipment inventory? 3

The state describes low-pressure heating boilers and high-pressure power boilers separately. It lists domestic water heaters at or above 200,000 Btu/hour, 210°F or 120 gallons among the regulated low-pressure category; confirm your specific equipment with the Boiler Inspection Section. 3

Equipment Breakdown in Other States

Other Coverage in Colorado

Sources

  1. Colorado Revised Statutes 2026, Title 9, Article 4: Boiler Inspection. Colorado General Assembly, Office of Legislative Legal Services; §§ 9-4-104 to 9-4-107 and 9-4-110.5; current 2026 codification accessed 2026-09-28. Accessed 2026-09-28.
  2. 7 CCR 1101-5, Boiler and Pressure Vessel Regulations. Colorado Secretary of State; Division of Oil and Public Safety rules governing construction, installation, inspection, maintenance and repair; current rule compilation accessed 2026-09-28. Accessed 2026-09-28.
  3. All About Boilers. Colorado Department of Labor and Employment, Division of Oil and Public Safety; State boiler-inspection section’s classes and practical thresholds for regulated low-pressure and power boilers; accessed 2026-09-28. Accessed 2026-09-28.
  4. Colorado Division of Insurance. Colorado Department of Regulatory Agencies; Official insurance regulator homepage; DOI oversight and consumer resources. Accessed 2026-09-28.
  5. DORA Online Services. Colorado Department of Regulatory Agencies; Official DORA online services portal; select Online License Verification and insurance profession. Accessed 2026-09-28.
  6. File a Complaint. Colorado Division of Insurance; Official form and instructions for insurance complaints. Accessed 2026-09-28.
  7. HB23-1111: Unauthorized Insurance Premium Tax Rate. Colorado General Assembly; Enacted bill harmonizes unauthorized insurance tax rate at 3%, effective January 1, 2024; parity with surplus-lines rate. Accessed 2026-09-28.
  8. Frequently Asked Questions. Surplus Lines Association of Colorado; FAQ: Colorado home-state tax; fee charged by insurer or broker in connection with placement included in premium base; qualifying federal/other-state taxes and examination fees excluded; commercial exempt policyholder due-diligence exception. Accessed 2026-09-28.
  9. Colorado Revised Statutes, Title 10 (2024). Colorado General Assembly, Office of Legislative Legal Services; C.R.S. § 10-5-111.5, surplus-lines premium tax and home-state application. Accessed 2026-09-28.
  10. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  11. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  12. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  13. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  14. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  15. About Risklytics. Risklytics; What we do; Who we insure; Licensing; Agency licenses table dated 2026-09-10. Accessed 2026-09-16.
  16. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  17. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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