Is workers comp required in Colorado?
Colorado generally requires employers with one or more employees, full- or part-time, to carry coverage. Owners, partners and corporate officers are treated under their own rules, and some workers such as certain agricultural or domestic employees may be handled differently.
Buying coverage in Colorado
Workers comp in Colorado is a competitive private market. Agents compare carriers that write your class of business, and an assigned-risk option exists for employers that private carriers decline.
Who sets the rules
The Colorado Division of Workers' Compensation oversees workers comp in Colorado. In Colorado, the National Council on Compensation Insurance (NCCI) provides the classification system and loss costs that insurers use to file rates.
What Colorado employers should know
- Colorado has a competitive state-chartered fund that writes alongside private carriers, which gives most businesses more than one market option.
- Ski resorts, construction and oil and gas service work are common seasonal or higher-hazard classes in the state.
How premiums are calculated
Insurers in Colorado price policies from payroll by classification, then apply your claims experience and any credits or debits. Keeping payroll estimates current avoids a large audit adjustment. Learn more about how workers comp rates work and preparing for an audit.
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Colorado workers comp FAQ
Is workers comp required in Colorado?
Colorado generally requires employers with one or more employees, full- or part-time, to carry coverage. Rules and exceptions change, so confirm your situation with the state agency or an agent.
Who oversees workers comp in Colorado?
The Colorado Division of Workers' Compensation administers the workers compensation system in Colorado.
Can I buy Colorado workers comp from a private insurer?
Yes. Private insurers write workers comp in Colorado, and a market of last resort is available for businesses that are hard to place.
How is workers comp priced in Colorado?
In Colorado, the National Council on Compensation Insurance (NCCI) provides the classification system and loss costs that insurers use to file rates. Insurers in Colorado price policies from payroll by classification, then apply your claims experience and any credits or debits. Keeping payroll estimates current avoids a large audit adjustment.