Workers Compensation Law and Required Coverage in Colorado

Workers Compensation Law and Required Coverage in Colorado

Most public and private employers in colorado must have workers compensation coverage for their employees. While workers’ compensation coverage requirements vary from state to state, Colorado has few exceptions. Any person that is hired to work or perform services for payment is considered to be an employee. A person hired to perform services for pay is presumed by law to be an employee. 

Employers must pay workers’ compensation insurance. Typically, this coverage is attained by a commercial insurance carrier. In some instances, it can be through self-insurance programs, although, these requirements are of a very stringent standard. It is also important to note, that this insurance cannot be covered through any of an employee’s pay.

There are three ways that a Colorado employer can meet workers’ compensation requirements. They can do so by using a commercial insurance company, such as Trusted Choice or The Hartford Insurance. As mentioned above, Colorado employers can also use self-funding as an individual or as a group. In order to be self-funded as an individual, the company must have been in business or at least 5 years, have at least 300 employees, and have assets of at least 100 million dollars. Being self-funded as a group would require a group of legal entities to retain their own risks in a pool while having to meet the coverage requirements. 

Like many states, Colorado has very specific employer requirements for workers’ compensation insurance. As mentioned, it is a legal must-have for many types of businesses to have it. Records must be kept of the work time lost by every work-related incident of injured or sick workers at that business. A workers compensation Notice to Employer of Injury poster must be on display at the business at all times. Supplemental Reports of Accident forms must be filed to the insurance provider once an employee returns to work from a work-related injury or illness, or if terminated. 

A safe work environment must also be maintained by the employer. Colorado businesses have a legal responsibility to their employees. The workplace must be free of recognized hazards. This would include, anything that can cause or are would be likely to cause injuries, illness, and death. It is essential working conditions are maintained in a safe way for employees. 

Finally, within 30 days of a workers’ compensation claim being closed, the insurer is required to conduct a survey of satisfaction to the injured or sick worker. The purpose of the survey is to help ensure that the injured or sick worker was treated promptly, courteously, and to a satisfactory standard.