Workers' compensation insurance provides lost wages and medical benefits to workers who are injured on the job. Your business is responsible for paying for the coverage, and you can purchase it from a commercial provider (approved businesses may self-insure).
Workers in Colorado cannot sue their employer for a work-related injury or illness.
Colorado, like all states, has a workers' compensation law.
It states if you have a business with one or more employees, you must carry workers' compensation insurance.
Anyone you have hired to perform services for you, whether they are full-time or part-time, is considered an employee and must be covered.
The state has additional insurance requirements for the construction industry. Failure to carry workers' compensation insurance may result in fines.
While the law is strict on whom you must cover, it does offer exemptions. Those include:
In addition, a corporate officer of a corporation or a member of a Limited Liability Company, or LLC, may choose to exclude themselves from coverage.
Sole proprietors may purchase workers' compensation for themselves but are not required to do so.
Overall Colorado workers' compensation covers:
Typical injuries covered by Colorado workers' compensation include:
Not all injuries are covered by workers' compensation insurance. Injuries not covered include those that happen when:
If an employee was intoxicated on the job, the injured worker can be penalized and receive only partial benefits. They are, however, still entitled to all reasonable, necessary, and related medical care.
Colorado laws place a limit on how much an employee can receive in combined temporary disability benefits and permanent partial disability benefits. The cap changes each year.
As of July 1, 2022, the maximum is $113,372.35 for a whole person impairment rating of 19 percent or less. For a whole person impairment rating above 19 percent, it is $226,741.83.
Colorado has one of the lower rates for workers' compensation insurance, according to WorkCompLab. Your premium is based on three factors: total payroll, industry classification code, and experience modifier.
Every industry and employer are different, however, as are annual payroll and other factors, so there is no one figure for every company. If your company has a low accident and claim history though, your experience modifier (e-mod) and premium may be lower.
Timelines for filing claims are strict in Colorado. There are seven steps:
If the employee does nothing or doesn't follow up during any point in the process within two years, the claim may be closed.
You can get workers' compensation insurance in two ways. Colorado businesses can buy:
The Colorado Department of Labor and Employment says that “employers who wish to become self-insured must have an exemplary financial position and provide the following:
All workers' compensation insurance in Colorado is sold by private insurance carriers; there is no state fund. While there are more than 500 licensed insurance companies that can provide coverage, only Pinnacol Assurance is required to provide workers' compensation coverage for any Colorado employer.
If you are looking for peace of mind, choose the workers' comp partner who's been helping employers for over 100 years.
Pinnacol not only provides your business, no matter the size, with reliable coverage but also free:
Get a quote online or connect with an agent partner to see if Pinnacol is right for you.
