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Colorado garage liability for towing and storage businesses

Colorado PUC rules distinguish cargo liability for a vehicle in tow and its contents from garagekeepers legal-liability coverage for stored vehicles. A carrier providing storage directly or through an agent must maintain and file the latter. This is a towing-carrier filing rule, not a promise that a policy responds to every loss; describe each tow, storage lot, and agent to the broker. 1

What Is Garage Liability?

Garage liability can address injury and property-damage claims from auto repair and related garage operations. If you run a repair or service shop, check separately whether customer cars in your care need garagekeepers coverage for vehicle damage. Read the national Garage liability guide.

Colorado Requirements

RequirementDetails
Towing cargo filingA towing carrier must maintain cargo liability coverage or a surety bond; coverage must include physical damage to the motor vehicle in tow and loss of its contents, with a certificate filed with the PUC. 1
Storage-related garagekeepers filingA towing carrier providing storage directly or through an agent must maintain garagekeepers liability and file Form 14-INS. The rule describes legal liability for another person’s stored property. 1,2

What to Watch for in Colorado

  • Count on-hook and stored vehicles separately

    The rule separates cargo liability for vehicles in tow from garagekeepers liability for vehicles in storage. Report vehicle counts, peak accumulation, limits by vehicle, contents exposure, and each direct or agent-operated lot. 1,2

  • Check legal-liability terms

    The rule describes garagekeepers coverage to the extent of legal liability for stored property. Ask about causes of loss, valuation, deductibles, unattended lots, and vehicles held by an agent; do not assume direct primary coverage. 1

  • Identify the towing-carrier entity

    The PUC application asks whether the applicant provides vehicle storage and for the storage-lot address. If a shop, dealer, auction, or affiliate stores cars, identify the contracting and custodial entities rather than assuming the towing filing applies to all. 2,1

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. 3,4,5

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. 6,8,7

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. Does the PUC permit describe every storage lot, including agent-operated locations?
  2. How do policy terms separate on-hook damage, contents, and post-drop storage?
  3. Does the proposal match peak towing and storage counts, values, and methods?
  4. If the same entity repairs or sells vehicles, which policy and entity address those operations?

Garage Liability in Colorado: FAQ

Must Colorado towing cargo liability include the towed vehicle? 1

Yes. The PUC rule says towing-carrier cargo liability must include physical damage to the motor vehicle in tow and its contents; confirm actual form terms, limits, and exclusions. 1

When does a Colorado towing carrier need garagekeepers coverage? 1

When it provides storage directly or through an agent, the carrier must maintain garagekeepers liability and file Form 14-INS for legal liability for stored property. 1

Garage Liability in Other States

Other Coverage in Colorado

Sources

  1. Code of Colorado Regulations, 4 CCR 723-6, Transportation Rules. Colorado Public Utilities Commission; Rule 6109(a)(III)–(IV), PDF p. 12; towing cargo and storage garagekeepers filings; adopted February 18, 2025. Accessed 2026-09-28.
  2. PUC Transportation Applications. Colorado Public Utilities Commission; Permit application: storage-lot address and insurance requirements. Accessed 2026-09-28.
  3. Colorado Division of Insurance. Colorado Department of Regulatory Agencies; Official insurance regulator homepage; DOI oversight and consumer resources. Accessed 2026-09-28.
  4. DORA Online Services. Colorado Department of Regulatory Agencies; Official DORA online services portal; select Online License Verification and insurance profession. Accessed 2026-09-28.
  5. File a Complaint. Colorado Division of Insurance; Official form and instructions for insurance complaints. Accessed 2026-09-28.
  6. 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.
  7. 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.
  8. 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.
  9. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  10. 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.
  11. 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.
  12. 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.
  13. 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.
  14. About Risklytics. Risklytics; What we do; Who we insure; Licensing; Agency licenses table dated 2026-09-10. Accessed 2026-09-16.
  15. 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.
  16. 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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