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Colorado management-liability coverage for owner-managers

Colorado’s 2025 Wage Act amendments add individuals who own or control at least 25% of an employer to the employer definition, with a limited exception for a minority owner of an employer that demonstrates full delegation of its day-to-day operating authority. The amendments also protect specified wage-related activity against retaliation. Describe ownership and wage-reporting roles when discussing the EPL section; the statute does not establish policy coverage. 1,2

What Is Management Liability?

Management liability packages can combine D&O and employment-practices coverage for leader and workplace claims, while benefit-plan protection may be a separate part. Shared limits can let a claim in one part reduce what is available for another, so compare the limits across the quote. Read the national Management liability guide.

What to Watch for in Colorado

  • Disclose 25% owners and check the minority-owner exception

    For Colorado Wage Act purposes, the 2025 act includes individuals who own or control at least 25% of employer ownership. It excepts a minority owner only when the employer demonstrates full delegation of its authority to control day-to-day operations. The amendment applies to conduct on or after August 6, 2025; state/local public entities are excluded. Give the broker the ownership and delegation facts and ask how the policy treats individual owners and wage-related claims. 1,2

  • Treat a wage complaint as a separate EPL underwriting scenario

    Effective for conduct on or after August 6, 2025, the act protects workers who raise or participate in wage-related matters. It reaches an employer and another person regularly engaged in business or commercial activity that contracted directly or indirectly with an employer or worker for labor from which that person benefits. A 90-day-or-shorter interval may, without more, support retaliatory intent; later action can also qualify. If contractors or downstream labor arrangements are involved, identify the contracting entities and ask whether the selected EPL wording addresses those people and retaliation allegations. 1,2

  • Do not assume wage amounts or penalties are insured

    HB25-1001 amends who may be an employer and what wage remedies or retaliation duties can apply; it does not say a management-liability policy will pay wages, penalties, or restitution. Review the issued EPL and D&O forms for wage/hour exclusions, defense language, insured-person definitions, and any express buyback or sublimit before relying on them. 1

  • Keep the plan bond separate from fiduciary and crime limits

    For an ERISA plan subject to § 412, covered fiduciaries and people who handle plan property must be bonded, subject to statutory and regulatory exceptions. The bond protects the plan from fraud-or-dishonesty loss, and the regulation defines handling by access or authority that creates risk. Compare the plan and asset-handling roles on the bond with the applicable requirement; a management-liability quote does not establish that the bond duty is met. 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

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 and confirm availability with a provider when requesting a quote.

Questions to Ask Before You Buy in Colorado

  1. Which individuals own or control at least 25% of the employer, and does the employer demonstrate full delegation of day-to-day authority for any minority owner?
  2. Which Colorado managers receive wage complaints or make decisions soon after a worker raises a wage concern?
  3. Does the actual EPL part address wage-retaliation allegations, and what exclusions apply to wages, penalties, or restitution?
  4. Are D&O and EPL limits separate or shared, and who is insured when an owner-manager is named personally?
  5. If the employer sponsors a Title I ERISA plan, which people handle plan funds, what bond is maintained, and does the plan itself appear as insured?

Management Liability in Colorado: FAQ

When does Colorado’s 25% owner rule apply, and is there an exception? 1,2

HB25-1001 applies to conduct on or after August 6, 2025. It includes individuals who own or control at least 25% of the employer, except a minority owner of an employer that demonstrates full delegation of its authority to control day-to-day operations. The rule defines wage-law employer status; it does not answer whether an insurance policy covers that person or loss. 1,2

Does individual wage-law exposure mean D&O or EPL will pay a claim? 1

No. The act describes statutory employer status and wage-related protections. The issued policy determines insured status, covered loss, defense, and exclusions; check its wage, penalty, and restitution language directly. 1

Can a management-liability crime section replace an ERISA plan bond? 3,4

Not automatically. ERISA § 412 and its regulations address a plan-protective bond for covered fiduciaries and people who handle plan property, subject to statutory and regulatory exceptions. The bond addresses fraud-or-dishonesty loss; a management-liability crime or fiduciary section should be reviewed separately against the plan’s actual bond duty and policy wording. 3,4

Management Liability in Other States

Other Coverage in Colorado

Sources

  1. House Bill 25-1001, Enforcement Wage Hour Laws, Signed Act. Colorado General Assembly; Signed act §§1, 7, 10: owner/employer definition and full-delegation exception (p.1); expanded worker, commercial beneficiary and protected wage-retaliation scope (pp.7–8); applies to conduct on/after effective date (p.10). Accessed 2026-09-28.
  2. HB25-1001, Session Laws. Colorado General Assembly; Official bill history and session law table: Act 228, effective August 6, 2025. Accessed 2026-09-28.
  3. 29 U.S.C. § 1112, ERISA fidelity bonding. U.S. Government Publishing Office; ERISA § 412(a)–(e): covered plan fiduciaries and persons handling plan funds/property; fraud-or-dishonesty protection; statutory exceptions; amount and procurement rules. Authenticated U.S. Code text records amendments through 2019, accessed 2026-09-28. Accessed 2026-09-28.
  4. 29 C.F.R. § 2580.412-6, Handling test for ERISA bonding. Office of the Federal Register, Electronic Code of Federal Regulations; Current eCFR displayed as of 2026-09-24; § 2580.412-6(a)–(b): risk-based handling definition, access/control/disbursement examples, negligible-risk qualification. Accessed 2026-09-28.
  5. Colorado Division of Insurance. Colorado Department of Regulatory Agencies; Official insurance regulator homepage; DOI oversight and consumer resources. Accessed 2026-09-28.
  6. DORA Online Services. 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. Colorado Division of Insurance; Official form and instructions for insurance complaints. Accessed 2026-09-28.
  8. 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.
  9. 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.
  10. 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.
  11. 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. 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. 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. 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. 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. Risklytics; What we do; Who we insure; Licensing; Agency licenses table dated 2026-09-10. Accessed 2026-09-16.
  17. 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.
  18. 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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