According to the Colorado Department of Labor and Employment, Colorado employers are required to carry workers’ compensation insurance if they have one or more employees.
This applies to all employers, regardless of whether the employees are part-time, full-time, or family members. Anyone who gets paid for the work they perform is presumed to be an employee.
And with limited exceptions, construction workers’ are required to have workers’ compensation insurance. Construction business owners working on a construction site are also required to have workers’ compensation insurance coverage for themselves.
Owners of construction companies must also provide workers’ compensation insurance for their independent contractors that do not have their own coverage.
In addition, the Colorado Department of Labor and Employment also requires employers to:
Even if it’s not required for your industry, Colorado workers’ comp insurance helps to provide financial protection for business owners and their employees if there is a workplace accident.
Without coverage your business could be responsible for significant medical expenses and you could face penalties from the state.
If you or one of your employees are injured while working, Colorado workers’ compensation coverage can help pay for:
Around 18,000 to 20,000 workers’ compensation claims are filed in Colorado annually, according to the U.S. Department of Labor.
Coverage can provide an essential safeguard for you and your employees if there’s a workplace accident, and it can help ease the financial burden on your company.
Here’s an example of workers’ compensation in action:
Let’s say you own a general contracting business. One of your employees twists their knee and visits the hospital. It’s found they have torn a ligament and they won’t be able to work for two months. They file a claim. With workers’ compensation insurance, your coverage can help pay your worker’s medical expenses and lost wages.
Workers’ comp benefits can equal up to two-thirds of the average weekly wage they were receiving on the date of the injury, up to a maximum amount set by the state.
If an employee dies on the job, Colorado workers’ compensation laws allow the deceased’s dependents to receive death benefits. The amount is calculated at approximately two-thirds of the workers’ average weekly wages at the time of death. The State sets a maximum amount which changes yearly.
Colorado Department of Labor and Employment classifies dependents as:
Workers’ compensation costs vary across industries. Factors that influence price include:
The best way to determine the insurance rate for your business is to get a free instant quote from NEXT.
Sole proprietors and independent contractors who do not work in construction are not required to have workers’ compensation coverage.
However, independent contractors must sign and notarize a workers’ compensation waiver in Colorado and provide it to any companies they choose to work with as proof of exemption.
Additionally, under certain circumstances, business partners, corporate officers or members of a limited liability company (LLC) might not have to have coverage.
According to state law, other exemptions to workers’ comp include:
NEXT strives to resolve every claim quickly. Learn more about our claims process and how our claims advocates will work with you after an employee injury.
General liability insurance protects your business from common mistakes or accidents, such as customer injury or damages to someone’s property.
Colorado varies its requirements for commercial auto insurance. If you drive or use your personal vehicle for work, commercial auto insurance helps protect your business from accidents.
Commercial property insurance can provide financial help if your business structures, goods, gear or inventory are damaged or destroyed by a covered event.
Professional liability insurance provides financial protection against claims of professional mistakes and negligence.
Best business insurance with the easiest process!
Small business insurance
I thought next was easy to use, great rates and outstanding follow-up.
Small start up
Thanks for helping a small startup. Was able to get the insurance I need for a cost I could afford.
Easy to use
Great! Set everything up and got the insurance needed for my business without hassle and it was very easy and quick to navigate.
Hassle free and great to work with. Affordable.
Peace of mind
easy to apply and and customer service is very responsive
Easy & affordable
This company makes the process very easy & affordable. Thank you for this service!!
Easy to sign up and has what I need.
Only took about 10 minutes to have all my questions answered and get the plan I need for my business. Great price and easy to understand plan.
The best service.
Thanks for your help with my needs, I'm very grateful for your assistance and help. I will recommend your company to others
Truly a great team of people that worked really hard to get everything together for me and went out of there way to make it fast and easy