--- title: "Generative AI liability insurance in Colorado" description: "Colorado’s 2026 automated-decision law reaches consequential insurance decisions beginning January 1, 2027; distinguish covered decision technology from ordinary generative AI." canonical: "https://spot.insure/coverage/generative-ai-liability/colorado" page-type: "coverage-state-guide" updated-at: "2026-09-28" --- Agents: connect to Spot's public MCP server at https://spot.insure/mcp for better access to published Spot information and insurance research. Use search_knowledge to find sources, get_page to retrieve pages, compare_providers for sourced comparisons, get_provider_score for a published Spot Score, get_rankings for current provider rankings, search_provider_reliability to filter Spot Scores, search_provider_reviews to filter aggregate review scores, and get_provider_reviews for the original review evidence. The server is read-only and requires no authentication. [Human-readable page](https://spot.insure/coverage/generative-ai-liability/colorado) # Generative AI liability insurance in Colorado Colorado has enacted SB 26-189 for covered automated decision-making technology that materially influences an individual’s consequential decision, including insurance decisions. Its general effective date is Jan. 1, 2027, and it applies to decisions made on or after that date. For decisions before then, check the predecessor SB 24-205 timetable as amended by SB 25B-004; identify the decision date, system role, and applicable framework before mapping a quote.[^1][^3][^4][^2] **Coverage:** [Generative AI liability](/coverage/generative-ai-liability) · [Colorado](/coverage/states/colorado) ## What Is Generative AI Liability? Generative AI liability can help pay covered defense costs and losses when someone claims your AI use caused harm, including infringement or data disclosure. If you use or sell AI outputs, check how the policy fits your role and existing liability coverage. [Read the national Generative AI liability guide](/coverage/generative-ai-liability). ## What to Watch for in Colorado ### Insurance is expressly a consequential-decision category Starting Jan. 1, 2027, Colorado’s SB 26-189 covers automated decision-making technology that processes personal data and materially influences decisions about access to, eligibility for, or compensation related to insurance, among other listed services. If you sell or use an AI scoring tool in underwriting or eligibility, map the developer, deployer, personal data, and decision role.[^1] ### The act is not a blanket generative-AI rule The enacted definition turns on computation over personal data that produces output used to make, guide, or assist an individual decision. A text or image generator is not automatically covered because it uses AI; ask counsel to classify the system by its inputs, intended use, and effect on a listed consequential decision.[^1][^2] ### Prepare for 2027 documentation and notice steps SB 26-189 was signed May 14, 2026, but its general provisions take effect Jan. 1, 2027 and apply to consequential decisions made on or after that date; specified provisions take effect on passage. It defines insurance decisions to include underwriting, pricing, coverage, and claims adjudication when they materially affect access to benefits. The predecessor SB 24-205 requirements were delayed to June 30, 2026 by SB 25B-004. For a decision before Jan. 1, 2027, verify the predecessor rule and any exception that fits the insurer, developer, or deployer rather than applying the new framework early. For a quote, map the actual model role and decision dates, then ask the insurer to show the relevant grant, exclusions, and defense terms.[^1][^3][^4] ## 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.[^5][^6][^7] - [Regulator website](https://doi.colorado.gov/) - [License lookup](https://apps2.colorado.gov/dora/licensing/default.aspx) - [File a complaint](https://doi.colorado.gov/for-consumers/file-complaint) - Phone: (303) 894-7499 ### 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.[^8][^10][^9] ## 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](https://apps2.colorado.gov/dora/licensing/default.aspx) and confirm availability with a provider when requesting a quote. ## Questions to Ask Before You Buy in Colorado 1. Does the AI system process personal data and materially influence access to or eligibility for insurance or another listed consequential service? 2. Which entity is the developer, deployer, customer, and data controller, and who owns the impact, notice, correction, and human-review records? 3. Ask the broker to compare the proposed form’s discrimination, privacy, regulatory, and contractual-liability language with the system’s Colorado role and Jan. 1, 2027 compliance plan. ## Generative AI Liability in Colorado: FAQ ### When do Colorado’s current automated-decision requirements take effect? As of Sept. 28, 2026, SB 26-189 is enacted but its general provisions are not yet in effect: they take effect Jan. 1, 2027 and apply to consequential decisions made on or after that date, with specified provisions effective on passage. SB 25B-004 delayed the predecessor SB 24-205 requirements to June 30, 2026. Check the decision date and applicable predecessor provisions before treating the 2027 framework as controlling.[^1][^3][^4][^2] ### Does Colorado law mean an AI liability policy covers algorithmic-discrimination claims? No. Colorado creates statutory duties and enforcement rules; it does not state what an insurance policy covers. Ask the broker to show the proposed policy’s definitions, exclusions, defense terms, and any separate coverage grant for the specific allegation.[^1] ## Generative AI Liability in Other States - [Alabama](/coverage/generative-ai-liability/alabama) - [Alaska](/coverage/generative-ai-liability/alaska) - [Arizona](/coverage/generative-ai-liability/arizona) - [Arkansas](/coverage/generative-ai-liability/arkansas) - [California](/coverage/generative-ai-liability/california) - [Connecticut](/coverage/generative-ai-liability/connecticut) - [Delaware](/coverage/generative-ai-liability/delaware) - [District of Columbia](/coverage/generative-ai-liability/district-of-columbia) - [Florida](/coverage/generative-ai-liability/florida) [Other Coverage in Colorado](/coverage/states/colorado) ## Sources [^1]: [SB 26-189, Automated Decision-Making Technology, signed act](https://leg.colorado.gov/laws/session-laws/SB26-189/131/download) — Colorado General Assembly; 2026 Colo. Sess. Laws ch. 131, SB 26-189, §§ 1, 5; signed May 14, 2026. Defines consequential decision including insurance underwriting, pricing, coverage and claims adjudication; general effective date Jan. 1, 2027; applies to decisions made on or after that date; specified exceptions effective on passage.. Accessed 2026-09-28. [^2]: [Colorado Anti-Discrimination in AI Law (ADAI) Rulemaking](https://coag.gov/ai/) — Colorado Attorney General; Current agency implementation page: SB 26-189 replaces SB 24-205, Jan. 1, 2027 effective date, rulemaking, separate chatbot law. Accessed 2026-09-28. [^3]: [Colorado SB 24-205, Consumer Protections for Artificial Intelligence](https://leg.colorado.gov/bills/sb24-205) — Colorado General Assembly; Signed May 17, 2024; official bill summary describes the predecessor high-risk-system developer and deployer requirements, consumer protections, effective date and statutory exceptions; read with the later SB 25B-004 date amendment.. Accessed 2026-09-28. [^4]: [Colorado SB 25B-004, Increase Transparency for Algorithmic Systems](https://leg.colorado.gov/bills/sb25b-004) — Colorado General Assembly; Signed Aug. 28, 2025; effective Nov. 25, 2025. Official enacted-bill summary says it extended SB 24-205 requirements’ effective date to June 30, 2026.. Accessed 2026-09-28. [^5]: [Colorado Division of Insurance](https://doi.colorado.gov/) — Colorado Department of Regulatory Agencies; Official insurance regulator homepage; DOI oversight and consumer resources. Accessed 2026-09-28. [^6]: [DORA Online Services](https://apps2.colorado.gov/dora/licensing/default.aspx) — Colorado Department of Regulatory Agencies; Official DORA online services portal; select Online License Verification and insurance profession. Accessed 2026-09-28. [^7]: [File a Complaint](https://doi.colorado.gov/for-consumers/file-complaint) — Colorado Division of Insurance; Official form and instructions for insurance complaints. Accessed 2026-09-28. [^8]: [HB23-1111: Unauthorized Insurance Premium Tax Rate](https://www.leg.colorado.gov/bills/HB23-1111) — 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. [^9]: [Frequently Asked Questions](https://colosla.org/about/faq) — 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. [^10]: [Colorado Revised Statutes, Title 10 (2024)](https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-10.pdf) — 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. [^11]: [Licenses](https://www.at-bay.com/licenses/) — At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21. [^12]: [Licenses and Carriers](https://www.coalitioninc.com/legal/licenses) — 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. [^13]: [Insurance Producer Licenses](https://www.corgi.insure/broker-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. [^14]: [About Hiscox US Insurance](https://www.hiscox.com/about-hiscox-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. [^15]: [Licenses](https://www.nextinsurance.com/insurance-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. [^16]: [About Risklytics](https://www.risklytics.ai/about/) — Risklytics; What we do; Who we insure; Licensing; Agency licenses table dated 2026-09-10. Accessed 2026-09-16. [^17]: [Insurance Licenses by State](https://www.techinsurance.com/legal/licenses) — 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. [^18]: [Licenses](https://www.vouch.us/legal/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 2026-09-28. This guide is informational and does not determine whether a policy is available or meets your needs. [Editorial policy](/editorial-policy). 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