With a few exceptions, Colorado law says that all employees, whether they work part-time or full-time, must have workers' compensation insurance. This policy pays for medical bills for injuries that happen at work.
Who needs workers' comp insurance in Colorado?
All workers in Colorado must have workers' comp insurance, whether they work for a public or private company. Generally, anyone who does work or provides a service is considered an employee.
There are a few exceptions to the rule that your Colorado business needs workers' compensation. In some situations, a sole proprietor, a general working partner, an officer of a corporation, or a member of a limited liability company (LLC) might not have to carry this insurance.
You're exempt from the Colorado workers' compensation law when:
Domestic work for a private homeowner if the job is less than 40 hours per week or less than five days per week.
If the carrier gives the driver workers' compensation insurance and the driver is under a lease agreement
People who work for railroads are covered by federal law.
Real estate agents and brokers who work on commission
Service or support providers for residential host homes
Some repair or maintenance work for a business costs less than $2,000 per year.
Volunteers for ski area operators
Do part-time workers have to have workers' comp?
Workers' compensation must be given to people who work part-time. For many part-timers, whether a worker is paid by the hour or month is accurate. But a person who works as their boss could be exempt, as long as Colorado law correctly labels them.
Performs services outside the company's control or direction.
Is a professional in the service being performed
Check out the CDLE Division of Workers' Compensation Employer's Guide for more information about independent contractors.
If you're self-employed or an independent contractor, do you need Workers Compensation Insurance?
Self-employed people don't require workers' comp, but they may want it. Sole proprietors, independent contractors, and company partners aren't regarded as workers and don't meet state policy standards.
Considering medical treatment costs, buying workers' comp is a smart business choice. It covers lost income and other benefits if someone is wounded at work.
How much does workers' compensation insurance cost in Colorado?
Colorado employers pay $0.86 for $100 in covered payroll for workers' comp. Your worker's comp premium depends on many things, such as:
A history of claims
Coverage restrictions
Industry-related potential hazards
Where you're located
The total number of staff members
Employee payroll
How do you get Colorado workers' compensation insurance?
Employers in Colorado can buy workers' compensation insurance from a commercial insurance company that is licensed to do so. To qualify for self-insurance, an employer must have at least 300 workers or $100 million in assets. Public sector employers and professional groups can join a group or pool through a program run by the Division of Insurance in the Department of Regulatory Agencies.
Colorado workers' comp benefits
In Colorado, workers' comp benefits cover the expense of medical care for injured or ill employees. After maximal medical improvement, workers' temporary and permanent partial disability benefits are restricted (MMI). The restriction depends on the worker's impairment rating.
What are the Colorado workers' comp penalties?
In Colorado, not having workers' comp insurance may result in fines. Uninsured employers may face a $250-per-day penalty. If an employer fails to maintain insurance and there is a workers' compensation settlement, the payments are enhanced by 50. The Division of Workers' Compensation may issue a cease and desist order.
Colorado's Workers Comp Death Benefits
Dependents of a worker who died from work-related injuries may get death benefits. In Colorado, dependents are:
A deceased worker's spouse
Under-18s and under-21 full-timers
Your parents, adult children, or grandkids might be partial dependents if you don't have a spouse or child. The family member must prove they needed the worker's money.
Workers must have died from a job-related sickness or injury to receive death benefits. If the death occurred from anything else, family members might collect unpaid disability compensation.
In Colorado, workers' compensation death benefits equal two-thirds of the worker's average weekly income up to an annual limit. A spouse may obtain death benefits for life or until they remarry. Partial dependents may get benefits for six years. Workers' comp pays up to $7,000 for a worker's funeral.
Colorado comp settlements
When an injured worker settles, they lose additional disability benefits. The insurance company may agree to a limited settlement that lets the worker cover future medical expenditures. In such a case, the insurance company would pay the benefits' present value, which drops 4% yearly. Most employees won't settle a workers' comp claim until "maximum medical improvement". Colorado's lump sum cap adjusts annually.
Colorado has a deadline for workers' comp claims.
An injured worker should file for workers' comp as soon as possible. If an employee misses three days of work due to an injury, the employer must file a report, and a statute of limitations date is imposed. Injured workers must notify their manager in writing within four days. This notice should go to the employee's supervisor or HR. Dependents of a worker who died from a work-related sickness or injury have two years to submit a claim.
We hope this blog post helped you understand how workers' compensation insurance works in Colorado.
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