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June 14, 2018

Workers' compensation in Colorado: Five little-known facts

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Colorado workers’ compensation laws were passed in 1915, but many business owners are unaware of the regulations that are unique to our state. While many workers’ comp laws are similar across state lines, it’s helpful to have an understanding of the regulations and benefit eligibility. Here are five little-known facts about our state’s rules and regulations:

There’s a Limited Time Frame to Submit Claims

When an injury in the workplace occurs, it’s crucial for both employee and employer to work quickly to report the incident. The injured worker must submit written notice to the employer within four days of the incident. It’s up to employers to notify the insurance provider within ten days of the injury. While it may be possible to receive benefits after this window of time has passed, penalties could apply.

Colorado Operates Under a “No Fault” System

When an employee is injured on the job in the state of Colorado, fault is not taken into account. However, it’s important to keep in mind that certain benefits may be reduced, in some circumstances, if it is determined that your actions caused or contributed to your injuries or if use of a controlled substance is involved. The no-fault system can put both employers and employees at ease, as compensation will be provided regardless of the circumstances when claims are submitted accurately and promptly.

Even Small Businesses Are Required to Hold a Workers’ Comp Policy

Since regulations vary between states, it can be a challenge to understand the intricacies of Colorado’s laws. If you’re new to the state or just beginning your business here, you may be surprised to discover that all businesses with at least one employee are required to hold a workers’ comp policy. This law applies to both full-time and part-time employees.

Coverage Isn’t Required For Sole Proprietors

If you’re the owner of a sole proprietorship, you may be curious of whether workers’ comp coverage laws apply to you. In the state of Colorado, sole proprietors or business partners do not qualify as employees, and therefore, aren’t required to purchase a workers’ comp policy for themselves.

Employers Certified in Safety and Loss Control Are Eligible For Premium Discounts

Workers’ comp coverage can be costly for employers, but the Division of Workers' Compensation in Colorado offers a discount for business owners who are proactive in preventing accidents. After applying to the Premium Cost Containment Board and demonstrating your commitment to risk management for at least one year, your business may be eligible to receive a 5% discount on workers’ comp premiums.

Workers’ comp policies are a must for businesses of all sizes and scope in Colorado. If you’d like to protect your employees and safeguard the company, you’ll need to work with a trusted insurance provider. Our team at Pinnacol Assurance is proud to provide competitive pricing and industry expertise to Colorado businesses, and independent agents are here to help you select the ideal policy. To get in touch with an agent, please fill out our online contact form.

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