Are You Required to Offer Workers’ Compensation Insurance?

Every state has different laws with various requirements for workers to provide Worker’ Compensation Insurance to their employees.  In this article, we will be focusing on the requirements and exceptions of Colorado.  If your business is located in another state, you can find information about the Workers’ Compensation requirements of your state in an article from the NFIB by CLICKING HERE.

From the Colorado Department of Labor and Employment Division of Worker’s Compensation Employer’s Guide:

All public and private employers in Colorado, with limited exceptions, must provide workers’ compensation coverage for their employees if one or more full- or part-time persons are employed.  A person to perform services for pay is presumed by law to be an employee.  This includes all persons elected or appointed to public sector service and all persons appointed or hired by private employers for remuneration.  There are a few exemptions to this definition.”
Read the full guide here »»

What does this mean?
If you are a business, you are required to purchase Workers’ Compensation Insurance for your employees.  It is also illegal to pay for the Workers’ Compensation Insurance out of the employees’ paychecks.  However, there are a few exempted businesses.

What are the exceptions?
The following exemptions are listed in the Employer’s Guide referenced above.  If you think your business meets the requirements for exemption, please contact the Colorado Department of Labor and Employment before making any decisions about providing Worker’s Compensation Insurance.  The exemptions are as follows:

  • Certain casual maintenance or repair work performed for a business for under $2000 per calendar year
  • Certain domestic work, maintenance or repair work for a private homeowner that is not done full time
  • Licensed real estate agents and brokers working on commission
  • Independent contractors who perform specific for-hire transportation jobs
  • Drivers under a lease agreement with a common or contract carrier
  • Any person who volunteers time or services for a ski area operator
  • Persons who provide host home services as part of residential services and supports
  • Federal employees (covered under federal laws)
  • Railroad employees (covered under federal laws)
  • Independent contractors who are generally defined below
    » See page 4 of the Employer’s Guide for details

Hopefully, you have a better idea about your business’s responsibilities in regards to providing Workers’ Compensation Insurance to employees. If you still have any questions about Workers’ Compensation or any other business insurance policies, please contact us at either of our locations.  As a small business, we are committed to providing prompt and knowledgeable service while maintaining a personal relationship with each of our clients.

Denver Office                                                             Castle Rock Office
1735 E. 17th Ave. #3                                                    513 Wilcox St. #200
Denver, CO 80218                                                      Castle Rock, CO 80104
303–388-7216                                                 Phone: 303–688-1251
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