Workers’ Compensation Insurance
In Colorado, protecting your team isn’t just the right thing to do—it’s the law. Workers’ compensation insurance helps cover medical bills, lost wages, and more when an employee is injured on the job, giving you and your business critical financial protection and legal compliance.
What Workers’ Comp Insurance Covers
Medical Expenses
Pays for hospital bills, doctor visits, prescriptions, and ongoing treatment if an employee is injured or becomes ill due to work.
Lost Wages
Replaces a portion of an employee’s income while they recover from a job-related injury or illness.
Disability Benefits
Provides compensation for temporary or permanent disabilities that prevent an employee from returning to work.
Occupational Illnesses
Covers chronic conditions caused by long-term exposure to harmful substances or environments, like in manufacturing or construction.
Employer Liability
Protects your business from lawsuits related to workplace injuries not fully covered by standard benefits.
Why Workers’ Compensation Matters in Colorado
It’s Legally Required
Colorado law mandates that most businesses with one or more employees carry workers’ compensation insurance—noncompliance can lead to steep fines and stop-work orders.
Injuries Happen in Every Industry
Whether you’re running a Denver office or a Fort Collins construction site, accidents can happen anywhere—workers’ comp helps cover the cost.
It Protects Your Business and Team
Workers’ comp helps you avoid out-of-pocket medical costs and litigation while supporting employees in their recovery. It’s protection for your people and your bottom line.
Colorado Workers’ Compensation Insurance FAQs
Who is required to carry workers’ compensation insurance in Colorado?
In Colorado, nearly all businesses with one or more employees are required to carry workers’ compensation insurance—even if employees are part-time or family members. Some exceptions apply, such as sole proprietors with no employees or certain independent contractors. RPM Agency can help you determine if your business qualifies for an exemption or needs coverage.
What happens if I don’t carry workers’ comp insurance in Colorado?
Businesses that fail to provide required workers’ compensation coverage can face penalties of up to $500 per day, along with potential stop-work orders and legal liability for employee injuries. It’s a major risk that can quickly derail your operations. Getting insured is the simplest way to stay compliant and protect your business.
Does workers’ comp cover remote employees in Colorado?
Yes. If your remote employees are based in Colorado and perform work for your business, they’re typically covered by your workers’ compensation policy. Even home office injuries—like slips, falls, or repetitive strain injuries—can be considered job-related under the right circumstances. We’ll help ensure your policy reflects your team’s unique work environment.
Can independent contractors be covered under my policy?
Generally, independent contractors aren’t covered unless you choose to include them. However, Colorado’s laws are strict about misclassification—if someone works like an employee but is classified as a contractor, your business may still be liable. We’ll help clarify these gray areas and structure your coverage accordingly.
How are workers’ compensation premiums calculated in Colorado?
Premiums are based on your industry classification, payroll size, and claims history. High-risk jobs, like roofing or construction, typically carry higher rates than office-based work. RPM Agency works with top-rated Colorado carriers to help you find competitive rates without sacrificing the coverage your business needs.