Colorado workers' compensation insurance: Your ultimate guide
Everything to know about workers’ compensation for
Colorado
businesses
What does workers’ compensation cover?
A standard workers’ comp policy covers four primary areas: medical expenses, lost wages, employer liability and ongoing rehabilitation. EverPeak policies ensure your crew gets the care they need to return to work safely while protecting your business from the costs of workplace accidents.
Medical care
Coverage for the necessary treatment resulting from a work-related injury or illness.
Lost wages
Partial pay for employees unable to work while recovering from an injury.
Legal protection
Financial support for your business if an employee files a lawsuit related to an accident.
Ongoing care
Rehabilitation and training to support employees re-enter the workforce, and ongoing benefits for permanent injuries.
Death benefits
Financial support for the families.
What are
Colorado
's workers' comp laws?
Nestled in the heart of the Rocky Mountains, Colorado combines warm hospitality with a pioneering spirit from the frontier days. From the vibrant energy of Denver to the natural beauty of the mountains and canyons, the Centennial State calls out to both those seeking adventure and entrepreneurs alike.
With a robust economy and a diverse range of industries, Colorado presents a wealth of opportunities for businesses to thrive. When it comes to ensuring the well-being of your business and employees, securing the appropriate workers' compensation insurance is of utmost importance.
What is workers' compensation?
Workers' compensation is a system of insurance for employers with one or more employees. It’s designed to provide employees who suffer work-related injuries or illnesses with medical treatment and indemnity benefits.
Without workers’ compensation, the cost of a work-related injured or ill employee’s medical treatment could become the responsibility of your business.
Colorado workers' compensation law
Colorado workers’ comp coverage is legally required for all businesses with one full-time or part-time employee (excluding sole proprietors).
Colorado's workers' compensation laws are designed to protect both employees and employers in the event of workplace injuries or illnesses.
Key aspects include coverage for medical expenses, wage replacement benefits, and compensation for permanent disabilities.
Injured employees must report incidents promptly, and disputes can be resolved through the Colorado Division of Workers' Compensation.
Retaliation against employees for filing claims is prohibited, and in some cases, employees can pursue third-party claims. It's important for both employees and employers to understand their rights and obligations under these laws.
Employees can verify online if their employer has coverage.
Who is covered and exempt from
Colorado
workers' comp?
Who is covered?
Policies include protection for full-time and part-time workers.
Exemptions from workers’ compensation in Colorado may include, for example:
- Workers performing casual maintenance or repair work for less than $2,000 per calendar year
- Part-time private domestic and maintenance or repair workers
- Real estate agents and brokers paid by commission
- Independent contractors with no employees and drivers working for a contract carrier
- Certain volunteers
Corporate Officers and members of LLCs are automatically included in coverage. If they own at least 10% of the business, they may reject coverage.
If they have less than 10% ownership of the business they can be excluded only if they are not active in the business operations.
For those Officers and Members who choose to be included, they are included at a capped payroll amount and not at their actual wages
For businesses in the construction industry, Colorado has additional insurance requirements. Failure to carry insurance can result in fines.
Covered injuries and illnesses
Workers' compensation covers a range of work-related injuries and illnesses, including physical injuries resulting from an accident and occupational diseases that may develop over time due to job conditions.
Benefits provided
Colorado workers’ comp insurance provides three types of benefits for work injuries:
- Medical benefits
- Lost wages
- Death benefits
- Medical treatment for work-related accidents, injuries and/or illnesses
- Temporary disability benefits
- Permanent disability benefits
- Continued medical maintenance
- Death benefits to dependents
Colorado workers’ compensation rates
Colorado laws place a limit on how much an employee can receive in combined temporary disability benefits and permanent partial disability benefits. The cap changes each year.
The weekly compensation rate in Colorado is two-thirds of a person’s average weekly wage, and it cannot exceed the state’s average weekly wage.
The maximum temporary disability benefit rate for injuries that occur between July 1, 2023, and June 30, 2024, is $1,293.25 per week.
Find more information on Colorado’s workers’ compensation rates.
How much does workers’ comp cost in
Colorado
?
How do you file a workers’ compensation claim in
Colorado
?
Filing a workers' compensation claim
When and how to file a workers' comp claim must follow a strict five-step claims process:
1. Report a work-related injury
This crucial step belongs to the employee. All incidents, big or small, should be reported.
They have ten days after a workplace injury or related illness to notify their employer in writing about the matter. Then, within 10 days of receiving notice, employers must file a claim with their workers' comp insurance partner.
Many partners track how long it takes for a claim to be filed. Continuous late reporting can potentially affect a business’s policy premium.
If an injury is not reported to the employer at the time of the incident, the employee can still file a claim with the Division of Workers' Compensation within two years.
Within 20 days from when the employee files the claim with the Division, an employer must file one of the following:
- General Admission to accept claim liability
- or a Notice of Contest to deny liability
If employers choose to file for denial of liability, they may apply for an expedited or standard hearing with the Division of Workers’ Comp within 45 days. Expedited hearings will occur within 60 days of the application. Standard hearings occur within 120 days of the application.
2. Initial treatment
In non-emergency situations, we recommend that employers help the employee get medical treatment as soon as possible. Employers can do this by providing a Letter to Injured Worker with a list of designated providers to choose.
If it's an emergency, injured workers should immediately seek treatment from the nearest hospital.
3. Resume work
If an employee gets approval from the designated medical provider, they can return to work using a modified duty task list until they have received a full duty work release.
4. Ongoing care
Medical care continues until the medical provider deems the employee has reached maximum medical improvement (MMI).
5. Claims closure
Once the employee has reached MMI, employers must file a Final Admission of Liability (FAL) with the Division within 30 days of the MMI date.
The claim will close if the employee does not timely object to the FAL.
Choosing a healthcare provider
In non-emergency situations or when emergency care is no longer required, employers must provide the injured worker with a designated provider list.
A designated provider list must:
- Be provided immediately upon notice of the injury;
- Be provided as a written copy to the injured worker within seven business days of the report of the injury;
- Have four physicians and/or corporate medical providers within a 30-mile radius that are willing to treat the injured worker; and
- Include complete contact information for the insurance partner/self-insured employer.
Exceptions can apply to rural areas, and telemedicine is permissible. If no physician is properly designated, the employee may select the health care provider of their choice.
Payment of medical bills
Payment for medical care is due within 30 days of submission by the employer or insurance partner unless there’s a good-faith reason to request additional information about the invoice.
Compensation for missed work
If the treating physician determines the employee is unable to perform their job duties, temporary total or temporary partial disability benefits must be paid.
The first installment of benefits is due on the 15th day after the employer is notified of the injury. There is no compensation for the first three days of missed work.
Resolving disputes
Colorado workers and employers looking to address disputes regarding workers' compensation claims have the option to submit either an Application for Expedited Hearing or an Application for Hearing with the Office of Administrative Courts. See forms here. For guidance on initiating a hearing, reach out to the Division's customer service at 303-318-8700 or 1-888-390-7936.
The Workers' Claim for Compensation form (WC 15) must be filed within two years from the date of the injury.
If an injured worker’s claim gets denied, they may be responsible for all related medical bills. However, private health insurance may cover these costs. If employees plan to pursue their claim further, employees should inform their doctor that the injury is work-related but subject to dispute.
How to get workers' compensation
Insurance requirements for employers
Generally, employers in Colorado with one or more employees must carry workers' compensation insurance or qualify for self-insurance. Compliance with these requirements is essential to protect both the employer and employees.
Choosing the right insurance provider
When selecting a workers' compensation insurance provider, consider factors such as the provider's experience in the industry, financial stability, coverage options, claims process, customer service, and cost.
We recommend requesting multiple quotes and comparing the offerings before making a decision.
Covering your business and employees with a trusted insurance partner — like EverPeak — brings peace of mind so you can focus on your bottom line.
FAQs
Enforcing safety protocols, providing proper employee training, maintaining a clean and hazard-free work environment, and regularly reviewing safety practices can significantly reduce workplace injuries.
Your premium is primarily determined by your industry payroll classifications, geographic location and total annual payroll. Your business’s safety history can also play a major role in determining your final rate. Three key factors influence your base insurance rate:
- Industry classification codes: Higher-hazard trades naturally carry higher baseline rates.
- Geographic location: Rates and statutory benefit structures fluctuate heavily by state lines.
- Historical safety record: Maintaining an accident-free workplace lowers your Experience Modification Rate (E-mod), resulting in built-in premium discounts.
Most states require businesses with employees to carry workers’ compensation insurance to stay compliant. Requirements vary by location, but having coverage ensures your business is protected and your team has access to benefits if an injury occurs.
Employees can verify online if their employer has coverage through the state’s online search tool.
Ideally, the incident should be reported immediately or within a few days of the occurrence. Prompt reporting helps ensures the necessary steps are taken to initiate the workers' compensation claims process.
Whether you need coverage for contractors depends entirely on your state’s specific regulatory definitions and formal worker classification tests. Since misclassification regulations are highly complex and can lead to severe audits or stop-work orders, it’s vital to ensure your entire labor force is properly verified and protected based on the actual day-to-day work they do.
Learn more: Do independent contractors need workers’ compensation?
In most cases, employees in Virginia are barred from suing their employers for work-related injuries or illnesses. The workers' compensation system provides an exclusive remedy, meaning that employees typically cannot file a lawsuit against their employers. Instead, they must pursue a workers' compensation claim to receive benefits for their injuries or illnesses.
In Virginia, employers who fail to procure or sustain the appropriate workers' compensation coverage for their employees may face civil fines of up to $250 per day of non-compliance. Failure to adhere to this requirement can reach a maximum of $50,000 in fines.
Workers’ compensation is a form of insurance that benefits employers and employees in the case of a work-related injury or illness.
Why choose EverPeak for workers’ comp coverage?
EverPeak protects the hardest-working businesses in (state) with simple, reliable workers’ comp starting as low as $18 a month. Backed by over a century of specialized experience, customers get multi-state coverage, fast and easy claims support, and a vast network of brokers.