Workers Compensation is a critical component of any business where there are employees who could be injured on the job. This insurance goes hand-in-hand with general liability insurance. in addition, the State requires a business to have workers comp if the business has employees, even if there’s only one employee and it’s a small business. This coverage provides medical and wage benefits to employees injured at or become ill at work. It is designed to cover medical expenses lost wages and rehabilitation costs injured or become ill “in the course and scope” of their job. It can also pay death benefits to families of employees who are killed on the job.
Rocky Mountain Insurance Center has access to several different key insurance companies who write workers compensation for businesses, which means we can help you choose an affordable protection package to protect your business’ most important asset: your employees.
Which Colorado Small Businesses Need Workers' Comp Coverage
Workers' comp is often thought of as something only large employers worry about, but Colorado law requires nearly every business with even one employee, full-time, part-time, or seasonal, to carry it. That catches a lot of small businesses off guard: contractors and tradespeople, restaurants and coffee shops, salons and spas, landscaping and property maintenance crews, retail shops, and home-based businesses that bring on their first part-time hire. Even family-owned businesses that use corporate officers as employees usually need coverage unless they qualify for a specific, limited exemption. If you're not sure whether your business structure or headcount triggers the requirement, it's worth a quick conversation rather than guessing, since the penalties for going without coverage fall squarely on the business owner.
What Happens If You Skip Workers' Comp in Colorado
Operating without required workers' comp coverage in Colorado carries real consequences, not just a slap on the wrist. The Division of Workers' Compensation can fine uninsured employers up to $250 to $500 per day of noncompliance, and a stop-work order can shut down your business entirely until coverage is in place. Even more significant, without a policy in place you lose the liability protection workers' comp provides: if an employee is hurt on the job, you as the owner can be held personally liable for medical costs, lost wages, and damages well beyond what a policy would have covered. None of that is worth the risk of a gap in coverage. Get in touch with Rocky Mountain Insurance Center for a workers' compensation quote and we'll help you find affordable coverage that fits your business and your budget.
