Best Workers' Compensation Insurance in Colorado (2024)

MoneyGeek evaluated affordability, customer satisfaction, financial stability and the convenience of obtaining online quotes to pick the best workers’ compensation insurance in Colorado. We found that Pie is the best overall provider in Colorado.

Workers' compensation insurance is crucial for small business owners for a number of reasons. While this coverage is required by law in Colorado, it also protects both the employer and the employee by covering medical expenses and lost wages resulting from a work-related injury.

Pie offers the best workers’ compensation insurance in Colorado with a MoneyGeek score of 92 out of 100. The average monthly cost of a policy with Pie is $73, but this price can vary [depending on factors] (#factors-that-impact-workers-comp) such as the size of your business, the industry your business is in, the number of employees you have and your claims history.

With an average monthly premium of $73, Pie offers the cheapest workers’ compensation insurance in Colorado. This provider is the optimal choice for businesses with 20 employees and an annual payroll cost of $1,250,000. It's important to note that your business’ premium may vary depending on the number of employees you have and your payroll amount, as these factors can impact the final cost of coverage.

Although we utilized average monthly cost to rank the most affordable workers’ compensation insurance in Colorado, it’s important to keep in mind that the cheapest option for your business may vary depending on other factors, including the size of your business, your industry and your claims history.

However, to assist you in comparing costs, we have provided a table below that illustrates the average annual and monthly expenses for insuring a Colorado business with 20 employees. These companies have been ranked based on their monthly cost to help you find the insurer that will most likely be the cheapest available option.

MoneyGeek's top choice for micro businesses in Colorado, which typically consist of five employees and have an annual payroll of $312,500, is The Hartford, which charges an average monthly premium of $55. Note that businesses with one to nine employees are generally categorized as micro businesses. While the number of employees impacts the cost of workers’ compensation insurance in Colorado, the payroll amount typically is a more influential factor on rates.

Pie provides the best workers’ compensation insurance in Colorado for businesses with 100 employees and an annual payroll of $6,250,000. With a monthly premium of $307, Pie offers attractive, low-cost coverage. Although the number of employees affects the cost of workers' compensation insurance, payroll typically carries greater weight in determining premiums.

For a business with 20 employees, the average monthly expense of workers’ compensation insurance in Colorado is $115, which falls below the national average of $168 per month.

In this analysis, our policy limits were established as follows: a total policy limit of $1 million, a per-accident limit of $1 million and a per employee limit of $1 million.

The total policy limit signifies the maximum coverage amount provided by the insurer throughout the policy period. The per-accident limit represents the highest coverage available for a single incident, while the per employee limit indicates the maximum coverage applicable to an individual employee. Any costs exceeding these limits would require out-of-pocket payment.

The table below presents the average cost of workers' compensation insurance for businesses with five, 20 and 100 employees. Note that employee count and payroll are the primary factors that significantly impact your premium rates.

The cost of workers' compensation insurance varies across businesses because it relies on multiple factors, including previous claims history, employee class code classification and other factors explored below.

Employers in Colorado are obligated to have workers' compensation insurance if they have one or more employees. This requirement encompasses all types of employees, including part-time, full-time and family members. The law defines that individuals who receive compensation for their work are presumed to be employees.

Small business owners have two options for obtaining coverage. They can purchase it through a commercial insurance carrier or qualify for self-insurance programs.

Note that certain exemptions exist regarding the need for workers' compensation insurance. The most common exemption applies to independent contractors, but contractors must meet specific requirements to qualify.

While it may not be mandatory, having some form of business insurance protection is generally advisable. Unexpected incidents can lead to claims that have the potential to disrupt daily business operations and cash flow.

Workers’ compensation insurance in Colorado offers numerous advantages to employees who encounter work-related injuries or illnesses.

• Medical Care: Workers' compensation insurance includes the expenses of essential medical treatment and health care services associated with the injury or illness.
• Disability Benefits: In situations where an employee is incapable of working due to an injury, workers' compensation can offer disability benefits to offset the income lost during the recovery phase.
• Rehabilitation Services: Workers' comp insurance can extend its coverage to encompass the expenses of rehabilitation programs — such as physical therapy — aimed at aiding injured employees in their recovery and facilitating their return to work.

Note that the employer holds the role of the policyholder in workers' compensation insurance. It is their duty to secure the coverage and guarantee that employees receive the entitled benefits when the need arises.

The Division of Workers' Compensation, a part of the Department of Labor and Employment, holds jurisdiction over workers' compensation matters within Colorado.

In the event of an employee sustaining a work-related injury or illness, the following steps should be taken to initiate a workers' compensation claim:

1. Notify the insurance carrier regarding the injury within 10 days, regardless of the severity of the injury.
2. Complete an Employer's First Report of Injury form (WC 1). It is important to note that filing this form does not imply an admission of facts; rather, it serves as a formal statement that the employee is making a claim.
3. If an accident results in an employee fatality or three or more employees are injured, immediate contact must be made with the insurance company.

Selecting an ideal workers' compensation insurance provider holds great importance, and there are several key factors to consider when making this decision. Discover insights to frequently asked questions regarding the search for the best workers’ compensation insurance in Colorado below.