Workers' compensation insurance, also known as workers' comp, protects employees who suffer a workplace injury or illness and their employers.
Policies vary by state, but most provide medical and lost wages benefits to workers injured on the job and protect business owners from legal action.
The idea of workers' comp is not new—in fact, workers' comp has been around since ancient Sumer in 2050 BC.
Workers' comp came to be in modern times when the Federal Employers' Liability Act was enacted in 1908 to protect railroad employees.
Colorado created workers' compensation laws early through the Colorado Workers' Compensation Act in 1915. By 1948, a workers' compensation law, in one version or another, was adopted by all states.
In the great state of Colorado, our workers' comp system is overseen by The Colorado Division of Workers' Compensation (DOWC).
Workers' compensation insurance is good business for both employers and their employees.
For employers, it decreases the risk of costly lawsuits and medical bills after an employee is in a serious accident. Such expenses are especially crucial to avoid for small businesses.
For employees, the risk of losing wages, crippling medical costs, and legal fees is greatly decreased because of workers' compensation coverage.
In Colorado, workers' comp insurance covers:
Colorado workers' comp does not cover all injuries. Employees are not covered when the workers:
It's possible for reduction or termination of benefits under the following circumstances:
Each state and territory have some form of workers' compensation board that governs workers' comp in its state.
Colorado law requires all businesses with at least one full-time or part-time employee to have a workers' compensation policy.
There are exemptions, however, which include:
Corporate officers and members of LLCs who own at least 10 percent of the business may also exclude themselves from coverage.
Colorado has additional requirements for the construction industry.
Businesses receive fines when they do not carry the necessary insurance.
Colorado workers' compensation costs vary depending on your business and carrier savings offered and more.
Several factors go into calculating the cost, such as the industry type and annual payroll. Companies with low accident rates will also have a lower experience modifier (e-mod), which helps lower premiums.
To calculate Colorado workers comp numbers, the Division of Workers' Compensation provides multiple calculators to help employers calculate the weekly wage, TTD, interest, offset, and more.
Protecting your business and your workers can be a challenge. Why not work with the workers' comp partner who has been helping employers for more than 100 years?
No matter what your company's size is, Pinnacol Assurance provides your business with not only reliable coverage but also free:
Go online or connect with an agent partner to see if Pinnacol Assurance is right for you.
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