Does your company operate in Colorado? If so, and you have at least one full-time or part-time employee, the state requires you to carry workers' comp insurance – even if your employees are family members or part of a small business.
In Colorado, any person you pay to perform work for you is presumed by workers’ compensation laws to be an employee.
In Colorado, the state does not provide workers' compensation insurance coverage, but private carriers do.
If you need coverage, you will first need to determine the kind of coverage that is best for your business: commercial insurance or self-insurance.
There are over 500 insurance companies in Colorado that offer commercial insurance. You can contact your insurance agent or carrier to obtain a quote. Pinnacol Assurance is required to provide workers' compensation coverage for any Colorado employer.
Self-insurance is an option for the rare employers that have:
If you are like most employers in the state, you don't meet those criteria. So, your best option is commercial insurance.
Yes, though there are exemptions for specific occupations and individuals.
Some occupations or individuals that are exempt from mandatory coverage include:
Individuals hired to perform services for your company must meet specific qualifications to be claimed as independent contractors.
Independent contractors must:
Misclassifying an employee as an independent contractor can lead to serious legal consequences. If you’re unsure about the worker’s classification, it is wise to check with an employment attorney to see whether they are considered a contractor or employee.
If a misclassified person experiences a work-related injury or illness, you will be liable for the costs of medical treatment, lost wages and additional fines.
Getting caught without workers’ compensation is a choice that can really cost businesses.
In fact, you risk being fined up to $500 per day. And there’s the possibility of having your business shut down.
Additionally, when you're uninsured and an employee is injured on the job, you will not only have to pay the entire cost of the claim, but you will also have to pay a 50 percent increase in benefits for failing to carry workers' comp insurance.
Employers pay for workers’ comp insurance and no part of the premium can be deducted from employee wages.
For the most part, if your business is performing work in Colorado and you have even one employee performing work here, you will likely be required to carry a valid Colorado workers’ comp policy.
However, the state of Colorado recognizes that each out-of-state employer's circumstances are unique, so the Division of Workers' Compensation advises contacting them at 303-318-8700 or 1-888-390-7936.
Regardless of whether you are a sole proprietor or partner in a partnership, everyone performing construction work on a construction site must either:
or
As the business hiring laborers, it is your responsibility to ensure one of those criteria is met.
You can verify of a sole proprietor or partner has rejected coverage here.
Traditionally, employers buy workers’ compensation coverage with the help of an insurance agent. This is still an excellent choice if you prefer a personal touch and a professional who can guide you through the insurance process.
For those who like things quick and convenient, you can buy insurance totally online now in about five minutes or less when you choose Pinnacol.
If you have 90 seconds, you can get a quote with our quick online application and start your policy in less than five minutes.
If you prefer a more personal touch, connect with one of our trusted agent partners in your area.
