Product Liability in Colorado

Colorado generally bars a product-liability action against a seller unless the seller is also the manufacturer, subject to a statutory rule when the manufacturer cannot be brought into the case. Ten years after a product is first sold for use or consumption, a rebuttable presumption applies that it was not defective, the manufacturer or seller was not negligent, and warnings and instructions were adequate. Some new manufacturing equipment also has a separate seven-year limit with exceptions. These rules affect claim analysis, not insurance coverage. ^1,^2,³

What Is Product Liability?

Product liability can cover claims that a product you make, import, distribute or sell injured someone or damaged property. If your business handles products, describe every role in the supply chain and ask how the quote treats product damage and recall costs. Read the national Product liability guide.

What to Watch for in Colorado

Describe whether you make or only sell the product
Colorado generally does not allow a product-liability action against a seller unless it is also the product or relevant-part manufacturer. If a court cannot obtain jurisdiction over a manufacturer, its principal distributor or seller that is subject to jurisdiction may be treated as the manufacturer. Keep accurate records of manufacturing, assembly, private labeling, and distribution roles; ask counsel how the statute applies to your operations. ¹
Treat the ten-year rule as a rebuttable presumption
Ten years after first sale for use or consumption, Colorado applies a rebuttable presumption that the product was not defective, that the manufacturer or seller was not negligent, and that warnings and instructions were adequate. This is not a ten-year cutoff. Preserve first-sale, manufacturing, warning, and product-change records so counsel can assess any claim involving an older product. ²
Check whether the product is new manufacturing equipment
For actions involving new manufacturing equipment, Colorado generally bars a claim arising more than seven years after first intended use by someone outside the equipment business. The definition is narrow: equipment used to produce a commercially sold new product distinct from its input materials. The statute addresses hidden defects, prolonged hazardous-material exposure, and intentional misrepresentation or fraudulent concealment. It also says the seven-year provision does not apply when a manufacturer, seller, or lessor gave an express written warranty against design, manufacture, or materials defects for longer than seven years and both injury and claim arose during that warranty; subsection (1) also does not apply to specified indemnity actions by a manufacturer, seller, or lessor against another person who may be liable for the judgment. Confirm the equipment, claim, warranty, and indemnity posture before relying on this specialized rule. ³
Keep records about product use and the incident
Colorado compares the injured person's causal fault with the fault of other parties in product-liability cases and reduces damages in proportion to that person's fault. Preserve instructions, training, maintenance, incident, and product-condition records; ask counsel which facts matter to a specific claim. 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

These providers publish a national listing for Product liability; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in Colorado. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

VouchVouch Specialty Insurance Services, LLCInsurance producer, Surplus-lines broker · checked 2026-09-28Vouch’s licenses page, effective January 16, 2025, lists producer licenses in all 50 states and DC. Its separate surplus-lines table includes Idaho number 870820, while a footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses. Because those statements conflict for Idaho, this record keeps Idaho producer-only and does not treat the table number as established agency surplus-lines authority. The page is company-reported and does not establish product availability. ¹⁸

Questions to Ask Before You Buy in Colorado

Does our application identify when we act as manufacturer, private-labeler, importer, assembler, or seller in Colorado?
What product records should we keep to document first sale, first use, warnings, and later changes?
How do the policy's product wording and reporting terms address claims involving older products and multiple sellers?