Do I Need Coverage?
Most businesses do. Colorado law requires companies to purchase workers' compensation insurance as soon as they hire their first employee. Your insurance policy is meant to protect both your company and your employees.
Sole proprietors and business partners, on the other hand, are not considered employees and aren't required to be covered on a policy.
Corporate officers and members of limited liability companies, who are active in the business, are considered employees and must be covered under a workers' compensation policy. The exceptions are officers and LLC members who own at least 10 percent of the business; they can choose to reject coverage for themselves.
Learn more about the origins and details of the Colorado Workers’ Compensation Act.
