Colorado requires all employers to carry workers’ compensation insurance, with few exceptions. The state has been dealing with similar issues as other states, including opioid abuse, mental health benefits and gig economy workers.
Read on for more on how to purchase workers’ compensation insurance in Colorado.
You are required to carry workers' compensation insurance in Colorado if:
The state has a strict workers’ compensation system, with few exceptions.
Sole proprietors and partners: You are excluded from coverage, but have the option to include yourself.
Corporate officers and members of an LLC: Colorado includes you in coverage, but if own at least 10% of the company you can opt out of coverage. A rejection of work comp benefits must be done in writing.
Domestic workers: Some domestic and maintenance workers that perform work on a limited, part-time basis for a homeowner may not need to be covered by law.
Colorado has a private market, which means you can purchase workers’ compensation insurance from any private insurance carrier or agency that is licensed to write in that state.
Commercial insurance carriers must be licensed by the state to bind workers' compensation policies in Colorado. WorkCompOne’s online platform makes it possible for leading national insurance carriers to serve all businesses, even those with fewer than ten employees. Get started on a small business policy >>
If you’re still having trouble finding coverage, you can contact Colorado's Pinnacol Assurance, which will provide you with coverage.
Self-insurance, either individually or as a group, is also allowed. This is typically an option for larger employers.
Colorado workers’ compensation rates are recommended by the National Council on Compensation Insurance (NCCI), which most states use as their rating bureau. NCCI collects data on workplace injuries and advises rates based on class code, or industry classification.
Small business owners can contact a licensed commercial insurance agent or carrier to buy workers' compensation coverage. The insurance carrier calculates the final premium cost based on the set rate, the company’s payroll and its Experience Modifier.
The Colorado state legislature has made several recent changes to the work comp system. These include:
How to address opioid abuse, and workers’ compensation benefits for “gig economy workers,” such as Uber drivers, have also been recent topics of debate.
Tip: General liability and workers’ compensation insurance are the two most basic insurance policies that every business should have, but they’re often confused. Learn more about general liability >>