Does Your Business Need Workers Comp?

Colorado’s workers compensation is a state mandated coverage for all (private and public) Colorado companies to cover employees’ lost wages and medical costs for all injuries that occur while working. A person who is hired to preform services for a company has to be covered by law. But, there are some exemptions:

  • Certain casual maintenance or repair work performed for a business for under $2,000 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

Likewise, Colorado business owners with no employees can fill out an opt out form to file in compliance, but if they later on decide to hire an employee they must make sure that employee is covered. In addition, companies that are based out of Colorado but have employees working in other states must abide by the Colorado law and have all their employees covered.

Premiums are based on the type of industry you are in and the payroll of all your employees. A company that engages in solely office work pays less than a company that does manual labor. This is because there is less chance of getting seriously injured sitting behind a desk than operating machines and doing construction work. But no matter what industry your company is in, accidents do happen and that’s why workers compensation is so important.