FAQ: Workers' Compensation Insurance in Colorado

Colorado workers' compensation insurance supplies coverage for the business and the employee. It helps pay for medical expenses and lost wages when an employee becomes injured or ill as a result of doing their job. 

Your workers' compensation rates will vary depending on your industry, experience, and prior claims in Colorado. Each job duty has a rate range from low to high, and your premiums will fall somewhere in that range based on your risk factors. Here are some examples of current rates in Colorado, per $100 of employer payroll: 

IndustryLow CostHigh Cost
Trim-Finish Carpenters-Cabinets-Countertops$3.95$8.69
Drywall Contractors$3.81$8.38
Painting Contractor$4.28$9.42
Floor Installers-Wood-Carpet-Laminate$2.79$6.14
Metal Building Construction$4.57$10.05

Yes. Colorado requires all business owners with any number of employees to obtain workers' compensation insurance at least at the state minimum limits or more. 

Your Colorado workers' compensation insurance will come with some exclusions, and they typically will include the following incidents: 

  • Injuries or illnesses sustained outside of work
  • Injuries or illnesses sustained while committing a crime
  • Injuries or illnesses sustained under the influence of drugs or alcohol

Workers' compensation in Colorado will cover a variety of losses. This policy will help pay for the medical expenses and lost wages of an employee who is injured or becomes ill as a result of their job duties. Some of these include the following: 

  • Traumatic injuries
  • Repetitive injuries
  • Some mental or cognitive injuries
  • Occupational illnesses/diseases

Certificates of insurance provide proof of coverage to whoever is requiring one in order to work with your business. Each certificate will show your individual policies with every carrier, the amount of coverage, and when they expire. Your local independent insurance agent can provide one of these at your request.

When you work with a Colorado independent insurance agent, you get options. They have access to dozens of top-rated workers' compensation carriers that write coverage for your specific industry. And they do the shopping for you at no additional cost, making it super-easy.

No. In Colorado, the benefits your employee receives from a workers' compensation claim do not count as taxable income in most cases.

What Are the Best Workers' Compensation Companies in Colorado?

National Average Cost of Workers' Compensation Insurance

Healthcare $1,825 Per $100,000 payroll

Retail Trade $2,850 Per $100,000 payroll

Construction $7,430 Per $100,000 payroll

Workers' Compensation Insurance Laws in Colorado

In Colorado, every business owner must obtain workers' compensation insurance regardless of the number of employees. Coverage must be obtained at the state limits or more. All employers must report an injury within the first ten days, whatever the severity. 


Common Workers' Compensation Claims in Colorado

Annual percent of employed workers by occupation in Colorado:

  1. Professional and related occupations
  2. Management, business, and financial operations
  3. Service occupations
  4. Office and administrative support
  5. Sales
  6. Construction and extraction
  7. Transportation and material moving
  8. Production 
  9. Installation, maintenance, and repair
  10. Farm, fishing, and forestry

The Top 6 most reported fatal work injuries in Colorado:

  1. Contact with objects and equipment 
  2. Exposure to harmful substances or environments
  3. Falls, slips, and trips
  4. Fires and explosions
  5. Transportation incidents
  6. Violence and other injuries by persons or animals

According to statistical data, 78 workers' compensation claims turned fatal in Colorado in one recent year.