Whether you’re a new employer or a veteran of the Colorado business community, it’s likely you’ve asked “How does workers’ compensation insurance work?” We know you don’t have the time to become a workers’ compensation expert, so we’re providing only what you need to assess your needs, get covered and manage your policy.
Learn more about key workers' compensation topics in two minutes or less with this video series.
Most businesses do. Colorado law requires businesses to have workers' compensation insurance as soon as they hire their first employee. Your insurance policy is meant to protect both your company and your employees. Watch this short, informative video to learn more about the difference between employees, independent contractors, and subcontractors.
Independent contractors don't have employees and aren't an employee of any company. They work on a contract rate for different companies and don't receive benefits from these companies. Therefore, they are not covered by an employer's workers' comp insurance policy. Still have questions? More about independent contractors.
Sole proprietors and business partners
Sole proprietors and business partners are not considered employees; therefore, the state doesn't require them to be covered by workers' comp insurance.
For the most part, individuals with a corporate officer title who own at least 10 percent of the business may reject workers' comp coverage. There are a few exceptions to this so be sure to ask a customer service representative for more information.
Do I need an agent?
Agents aren't required, but they can make the process easier for you in many different ways. We partner with hundreds of agents across the state, ready to help you at a moment's notice.
Experience modifiers, or e-mods, compare your accident and claim history with the average claim history for businesses like yours in Colorado. If your experience is better than the average, your e-mod and premium may be lower.
Different industries have different National Council on Compensation Insurance (NCCI) codes that help to standardize risk across all types of businesses. Classifications distinguish between types of work being done.
We offer a range of discounts for those who take steps to proactively ensure the health and safety of their employees.
How does the claims process work?
When an employee is injured, you'll need to file a claim. We strive to make this as easy as possible for you. And while the claims process is unique to each injury, here's generally how the process occurs: