Do I Really Need Workers' Compensation?

Workers comp or Workmans Compensation in Colorado is required for all employers that have one or more employees. The information below is from Pinnacol Assurance the largest workers Compensation carrier in Colorado.

Does my business need a workers’ compensation policy?

Colorado law requires any business with one or more employees to carry workers’ compensation or workmans compensation insurance. Sole proprietors and partners in a business are not considered employees and are not required to be covered on a policy. Corporate officers and members of limited liability companies who are active in the company are considered employees, but they may be eligible to exempt themselves from coverage. They must meet certain statutory conditions to reject coverage. For information on other exemptions, please refer to Pinnacol Assurance’s Employer’s Guide to Workers’ Compensation or contact the Division of Workers’ Compensation.

What happens if my business doesn’t have a workers’ compensation policy?

Employers have sole responsibility to provide insurance for their employees. If unlawfully uninsured at the time of an injury, the employer must pay all statutory medical and disability benefits for the injured employee and an additional 50 percent of all temporary, permanent, and disfigurement benefits for having been uninsured.”

If a policy is not provided by an employer you may find yourself in the cross hairs of a workers comp lawyer. That workers comp lawyer will try to get more than just the medical bill covered. Most Colorado workers comp lawyer will go for damages that affect the household and not just the employee. If you have a policy Colorado workmans compensation rules say an employee can not sue the employer and use the services of a workers comp lawyer to receive additional damages.

The cost of an injury can and more than likely will be far more expensive than if your company carried a workers compensation policy. A workers compensation or workmans compensation policy is a cost effective insurance against the potential lose of your business. If you are looking for first time coverage or looking to renew your current policy give StaffScapes and call and learn how a Professional Employer Organization can help bring cost effective coverage to your business.