Colorado Workers Compensation Insurance: Quotes From $35/mo

Nestled in the heart of Colorado lies a deep commitment to the well-being and security of its workforce. In this vibrant state, Colorado workers compensation insurance, commonly known as workers' comp, takes center stage as a robust shield that provides essential support to employees when they encounter injuries or illnesses in the line of duty. 

This comprehensive guide is your gateway to navigating the intricate landscape of Colorado workers compensation insurance, where we'll delve into the laws, benefits, and the prominent insurance providers that play a pivotal role in safeguarding the interests of workers across the Centennial State. As you read on, you'll gain a profound understanding of how Colorado workers compensation stands as a protector, ensuring that the rights and well-being of workers are upheld and preserved.

What is Colorado Workers Compensation Insurance?

Colorado workers compensation insurance is a vital safety net for employees in the state of Colorado. It is a mandatory insurance program designed to provide financial protection and support to workers who suffer job-related injuries or illnesses.

This insurance system is a critical component of the Colorado Division of Workers Compensation. Colorado workers compensation insurance offers coverage for various aspects, including medical benefits, wage replacement, and rehabilitation, to help injured or ill employees recover and return to work. In essence, Colorado Workers Compensation Insurance aims to:

  • Provide medical coverage: It covers the medical expenses of employees who sustain injuries or illnesses while performing their job duties. This includes doctor's visits, hospitalization, surgeries, and rehabilitation services.

  • Replace lost wages: In cases where employees are unable to work due to their work-related condition, workers' comp provides partial wage replacement. This helps employees and their families maintain financial stability during their recovery period.

  • Support rehabilitation: Workers' comp often includes provisions for rehabilitation services, such as physical therapy, to aid employees in their recovery process and facilitate their return to work.

  • Prevent legal actions: By providing these benefits, workers comp Colorado helps protect employers from potential lawsuits that may arise from workplace injuries. In exchange for these benefits, employees generally waive their right to sue their employer for negligence.


When Do You Need to Get Workers Compensation Insurance

To ascertain when a business in Colorado must acquire workers compensation insurance, we delve into the specifics outlined in the state's workers' compensation law provisions. According to these regulations, the requirement typically hinges on the number of employees a business has.

If your business employs one or more workers, whether they work full-time or part-time, you are generally mandated to provide State of Colorado workers compensation coverage. This requirement extends to even the smallest of enterprises, where a solitary employee triggers the necessity for coverage.

This stringent approach is underpinned by the commitment to safeguard the well-being and financial security of the workforce. For instance, the Colorado Division of Workers Compensation reported that approximately 97% of businesses in the state had coverage for their employees. This statistic underscores the widespread adoption of Colorado workers compensation insurance as a crucial safety net for workers facing work-related injuries or illnesses.

What Government Agency Oversees Workers Compensation Insurance Colorado

The oversight of workers compensation insurance in Colorado is primarily the responsibility of the Colorado Division of Workers Compensation (CDWC). This government agency plays a crucial role in administering and regulating workers' compensation programs within the state. Let's delve into the functions and key aspects of the Colorado Division of Workers Compensation:

  • Regulation and compliance: The CDWC ensures that employers in Colorado comply with the Colorado workers comp laws. This involves verifying that businesses provide the necessary coverage to protect their employees in the event of work-related injuries or illnesses.

  • Claims administration: The CDWC oversees the administration of workers' compensation claims in Colorado. This includes the processing of claims, determining the validity of claims, and resolving disputes between employees and employers or insurance carriers.

  • Mediation and dispute resolution: The agency provides mediation services to facilitate the resolution of disputes related to workers' compensation claims. This helps streamline the claims process and resolve issues more efficiently.

  • Educational outreach: The CDWC conducts educational outreach programs to inform employers, employees, medical providers, and other stakeholders about workers compensation rights and responsibilities. This ensures that all parties are well-informed about the system.

  • Medical Fee Schedule: The agency establishes and maintains a Medical Fee Schedule, which outlines the maximum allowable fees for medical services related to workers' compensation claims. This helps control costs and ensures that medical providers are fairly compensated.

  • Safety and injury prevention: CDWC also places a strong emphasis on workplace safety and injury prevention. It collaborates with employers and industry groups to develop and promote safety programs and practices that reduce the risk of workplace accidents.

  • Online resources: The CDWC provides a comprehensive website with resources for employers, employees, and healthcare providers. This includes access to forms, guidelines, and educational materials.

  • Insurance carrier oversight: The agency oversees insurance carriers that provide workers' compensation coverage in Colorado. This includes licensing and regulating insurance carriers to ensure they meet the Colorado workers compensation requirements.

  • Legal proceedings: In cases of disputes that cannot be resolved through mediation, the CDWC may hold hearings and issue rulings. These decisions can have a significant impact on the outcome of workers' compensation claims.

  • Data collection and reporting: The CDWC collects data on workers compensation claims and trends in Colorado. This information helps inform policy decisions and improve the effectiveness of the workers' compensation system.

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Colorado Workers Compensation Poster

The Colorado Workers Compensation Poster is a mandatory document that employers must prominently display within their workplaces. It serves several crucial functions, making it an essential element of the workers' compensation system in Colorado.

At its core, the poster informs employees about their rights and benefits under the Colorado Workers Compensation Act. It guides the steps employees should take if they experience a work-related injury or illness, including reporting the injury, seeking medical attention, and initiating the claims process.

The poster also notifies employees that their employer maintains workers compensation insurance, assuring them of a workplace injury or illness coverage. It contains contact information for the insurance carrier or claims manager, ensuring access to essential contacts for claims processing.

Employers must legally display the Colorado workers compensation poster conspicuously in the workplace. Non-compliance can result in legal penalties, making it essential for employers to ensure accessibility. Additionally, the poster outlines the rights and responsibilities of employees and employers regarding workers compensation, including benefit entitlements and the employer's obligation to provide coverage.

Which Businesses Are Exempt from Getting Workers Compensation Insurance Colorado

In Colorado, businesses that meet certain criteria may be exempt from the requirement to obtain workers compensation insurance. It's important to note that the specific exemptions can vary based on factors such as the number of employees and the nature of the business. It's essential to consult with legal professionals or refer to the official resources of the Colorado Division of Workers Compensation for the most accurate and up-to-date information. Here are some general considerations for exemptions:

  • Small businesses: In some cases, very small businesses with a limited number of employees, often fewer than three, may be exempt from providing workers compensation insurance.

  • Sole proprietors and partners: Sole proprietors and business partnerships may have the option to exclude themselves from coverage. They may choose to be covered under the policy, but they aren't required to do so.

  • Executive officers: In certain situations, executive officers of corporations may have the option to exclude themselves from coverage. However, the rules regarding executive officer exclusion can vary.

  • Agricultural workers: Some states, including Colorado, have specific regulations regarding agricultural workers. In Colorado, agricultural employers may be exempt from providing workers compensation coverage for certain types of agricultural labor.

  • Casual labor: In some cases, businesses that employ casual labor, such as one-time or occasional workers, may be exempt from providing coverage for those workers.

  • Certain independent contractors: Independent contractors are generally not considered employees and are not covered under a company's workers' compensation policy. However, accurately classifying workers as independent contractors is essential to avoid potential misclassification issues.

How Much Money Does Colorado Workers Compensation Insurance Give

Colorado workers compensation insurance provides various types of benefits to employees who suffer work-related injuries or illnesses. These benefits are designed to support injured workers financially and help them recover. Here's an overview of the different types of workers' compensation benefits available in Colorado:

Temporary Partial Disability Benefits

Temporary Partial Disability (TPD) benefits aim to support employees who can work in a limited capacity due to a work-related injury or illness. The benefit amount is typically calculated as two-thirds (66.67%) of the difference between the worker's pre-injury average weekly wage and their current wage. For example, if an employee's pre-injury average weekly wage was $1,000, and their current wage due to work restrictions is $600, the TPD benefit would be (2/3) * ($1,000 - $600) = $266.67 per week.

Temporary Total Disability Benefits

TTD benefits are for employees temporarily unable to work due to a work-related injury or illness. The benefit amount usually equals two-thirds (66.67%) of the worker's average weekly wage. For instance, if an employee's average weekly wage is $800, their TTD benefit would be (2/3) * $800 = $533.33 per week.

Permanent Partial Disability Benefits

These benefits come into play when a worker has reached maximum medical improvement (MMI) but has a permanent impairment or loss of bodily function due to their work-related injury or illness. The amount of PPD benefits varies depending on the assessed impairment. Colorado uses a schedule called the AMA Guides to the Evaluation of Permanent Impairment to calculate PPD benefits. For example, if an injured worker has a 10% impairment rating for their arm, and the maximum PPD rate for that body part is $50,000, the PPD benefit would be 10% of $50,000, which is $5,000.

Permanent Total Disability Benefits

PTD benefits are typically calculated at two-thirds (66.67%) of the injured worker's average weekly wage, similar to TTD benefits. However, PTD benefits continue for the duration of the disability, which can be for life. For instance, if an employee's average weekly wage is $900, their PTD benefit would be (2/3) * $900 = $600 per week for as long as the disability persists.


How Long Will an Employee Wait Before Receiving Benefits

The Colorado workers compensation waiting period can be influenced by various factors. One of the primary considerations is the timely report of the injury or illness. When an employee is injured on the job or discovers an occupational disease, it is crucial to report it to their employer promptly. Under Colorado law, employees are generally required to report work-related injuries within four working days of the incident or the discovery of an occupational disease. This initial report initiates the process.

Following the employee's report, the employer plays a pivotal role in the claims process. The employer is responsible for notifying their workers' compensation insurance carrier or third-party administrator about the injury or illness. This notification sets the claims process in motion, and the efficiency of this step can impact the waiting period.

Once the claim is submitted, the waiting period may vary depending on several factors, including the insurance carrier's responsiveness and the nature of the injury. In Colorado, insurers are typically required to acknowledge receipt of a Colorado workers compensation claim within 20 days. After acknowledgment, they have 45 days to accept or deny the claim. If the claim is accepted, the injured employee can expect benefits to commence shortly thereafter.

For temporary disability benefits, which provide financial support when the employee cannot work due to the injury, there is often a waiting period before payments begin. The Colorado workers compensation waiting period typically consists of the first three calendar days from the onset of disability. If the disability persists for two weeks or more, benefits for this initial three-day waiting period are retroactively paid.

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Penalties for Not Getting Workers Compensation Colorado

In Colorado, failing to provide mandated workers compensation insurance can lead to significant legal penalties for employers. The workers compensation Colorado laws are seriously taken to protect employees who may face work-related injuries or illnesses. Here are some key aspects of the penalties:

  • Legal consequences: Employers who do not have the required workers' compensation coverage can face legal consequences, including fines and penalties imposed by the Colorado Division of Workers Compensation. These penalties can be substantial and can impact a business's financial stability.

  • Employee lawsuits: In addition to regulatory penalties, employers who lack workers' compensation insurance are also exposed to the risk of being sued by injured employees. Without insurance, employers may be held personally liable for medical expenses, lost wages, and other damages incurred by their employees due to work-related injuries or illnesses.

  • Criminal charges: In extreme cases of non-compliance, employers may even face criminal charges, such as misdemeanor or felony charges, which can result in imprisonment and more severe fines.

  • Loss of legal protections: Employers who fail to provide Colorado workers compensation insurance also lose certain legal protections. For example, they may lose immunity from personal injury lawsuits from injured employees.

Colorado Workers Compensation Insurance Costs

On average, businesses in Colorado can expect to pay around $100 per month or $1,200 per year for workers compensation insurance coverage. When it comes to Colorado workers compensation insurance costs, they can vary significantly based on several factors, including the nature of the business, the number of employees, and the industry's inherent risks. Businesses need to explore their options and select the insurance provider that best suits their needs. Below is a comparison table of some insurance providers:

CompanyCost per MonthCost per YearBest for
Thimble$50$600Businesses in Colorado with fluctuating coverage needs.
NEXT$100$1,200Best overall; Fastest workers compensation insurance
Hiscox$130$1,560Professional services and small businesses in Colorado.
CoverWallet$150$1,800Comparing workers compensation insurance quotes online
Tivly$180$2,160Comparing workers compensation insurance quotes over the phone.
The Hartford$200$2,400Established businesses in Colorado seeking a trusted insurance partner.

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Best Colorado Workers Compensation Insurance Companies

When it comes to safeguarding your business and employees in the vibrant state of Colorado, having reliable workers compensation insurance is non-negotiable. 

The safety net ensures your team is protected in case of work-related injuries or illnesses while providing you with the peace of mind to focus on what matters most running your business. 

To help you make an informed choice, we've conducted in-depth reviews of several prominent insurance providers in Colorado's bustling market. Read on to know their pros, cons, and average cost:

NEXT Insurance 


  • Comprehensive coverage options tailored for Colorado businesses.

  • User-friendly digital platform for quotes and policy management.

  • Competitive pricing and flexible payment options.

  • Best overall.

  • Get an online proof of insurance and send as a text message, email, or social media post.

  • Fastest workers compensation insurance.

  • Great customer service and reputation.

  • Issues an online proof of insurance instantly.

  • Outstanding value for money.

  • Bundle two or more insurance policies and get a 10% discount.


  • Couldn’t find any

NEXT is a standout option for businesses in Colorado seeking reliable workers compensation insurance. Their digital platform simplifies the process of obtaining quotes and managing policies. They offer a range of coverage options, from small businesses to more extensive enterprises. Their competitive pricing and flexible payment plans make them an attractive choice for many.

Best for: Best overall; Fastest workers compensation insurance.

Average cost: $100 per month

Our rating: 10/10

The Hartford 


  • Extensive experience and a strong reputation in the insurance industry.

  • Robust coverage options suitable for a wide range of businesses.

  • Additional risk management and loss control services.


  • Not available in all states.

The Hartford is a well-established insurance provider with a long history of serving businesses. They offer comprehensive workers compensation insurance coverage tailored to Colorado's diverse industries. In addition to insurance, they provide valuable risk management and loss control services to help businesses maintain a safe work environment.

Best for: Established businesses in Colorado seeking a trusted insurance partner.

Average cost: $200 per month

Our rating: 10/10



  • Streamlined online platform for quick quotes and policy management.

  • Access to multiple insurance carriers for competitive pricing.

  • Dedicated customer support for guidance and assistance.


  • Not an insurance company but an insurance broker. 

CoverWallet excels in providing a seamless online insurance experience. Their platform allows businesses in Colorado to obtain quotes from multiple carriers, ensuring competitive pricing. They offer dedicated customer support to assist with insurance inquiries and policy management, making it a user-friendly choice.

Best for: Comparing workers compensation insurance quotes online. 

Average cost: $150 per month

Our rating: 9/10



  • Specialized insurance solutions tailored to high-risk industries.

  • Strong focus on risk assessment and management.

  • Competitive pricing for businesses in Colorado.


  • Limited coverage options for low-risk businesses.

Tivly specializes in providing workers compensation insurance solutions to high-risk industries in Colorado. They prioritize risk assessment and management to ensure businesses have the necessary coverage. Their competitive pricing and industry expertise make them a solid choice for those in specialized fields. Call now and talk with a representative to compare quotes over the phone. 

Best for: Comparing workers compensation insurance quotes over the phone.

Average cost: $180 per month

Our rating: 9/10



  • Flexible, on-demand coverage options for businesses with changing needs.

  • Quick and easy online application process.

  • Transparent pricing with no hidden fees.


  • May not be the most cost-effective option for businesses with consistent coverage needs.

Thimble dances to the change in Colorado's business world, offering on-demand workers compensation insurance that adapts to your requirements. Their digital insurance solutions agrees with businesses seeking flexibility. With a straightforward application process and transparency in pricing, Thimble grants coverage for businesses with ever-shifting staffing dynamics.

Best for: Businesses in Colorado with fluctuating coverage needs.

Average cost: $50 per month

Our rating: 8/10



  • Specialized insurance solutions for professional services and small businesses.

  • Online quotes and policy management for convenience.

  • Strong financial stability and reputation.


  • May not be the most cost-effective option for larger businesses or high-risk industries.

Hiscox specializes in providing insurance solutions for professional services and small businesses in Colorado. Their online platform makes it easy to obtain quotes and manage policies. With a strong financial reputation, they offer peace of mind to businesses seeking reliable coverage.

Best for: Professional services and small businesses in Colorado.

Average cost: $130 per month

Our rating: 9/10

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