Protect Your Business with Workers' Compensation Insurance in Colorado
Part of our guide to general contractors insurance in Colorado.
In Colorado, hiring your first employee triggers a requirement for workers' compensation insurance. General contractors in Colorado Springs, Aurora, and Fort Collins must have this coverage to avoid fines and financial losses. Without it, a single claim can bankrupt your business. Workers' compensation insurance pays for medical bills and lost wages when employees are injured on the job, ensuring you don't have to pay out of pocket. In Colorado, this coverage is mandatory as soon as you hire your first employee, making it a critical investment for your business.
Workers' Compensation cost for general contractors in Colorado
Illustrative monthly workers comp estimate for a small general contractor operation in Colorado. Actual pricing depends on revenue, payroll, coverage limits, claims history, and carrier. Get a personalized quote to see your real price.
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What Workers' Compensation Covers for General Contractors in Colorado
Workers' compensation insurance pays for medical bills and lost wages when employees are injured on the job, ensuring you don't have to pay out of pocket. For example, if an employee falls from a ladder while working on a construction site in Denver, this coverage would pay for their medical bills and lost wages. However, it does not cover damages to equipment or property, which would be covered under a different policy, such as general liability insurance. Another example is if an employee is injured while driving to a job site in Colorado Springs, workers' compensation would cover their medical bills, but not the damages to the vehicle, which would be covered under a commercial auto policy.
Do General Contractors in Colorado Need Workers' Compensation?
In Colorado, workers' compensation is generally required as soon as you hire your first employee. This means that if you're a general contractor with even one employee, you need to have this coverage. Without it, you risk facing fines and financial losses if an employee is injured on the job. For instance, if you're a general contractor in Fort Collins with two employees and one of them is injured, you could be liable for their medical bills and lost wages if you don't have workers' compensation insurance. This coverage is not optional, and the risk of going without it is too great to ignore.
A Real Workers' Compensation Claim a General Contractor Could Face
John, a general contractor in Aurora, had an employee who was injured on the job while working on a roof. The employee fell and broke their ankle, requiring surgery and several weeks of recovery time. The medical bills totaled $15,000, and the employee was unable to work for six weeks, resulting in lost wages of $10,000. John's workers' compensation insurance covered the entire amount, paying for the medical bills and lost wages without John having to pay out of pocket. This claim would have been devastating for John's business if he hadn't had workers' compensation insurance, but instead, it was a manageable expense thanks to the coverage.
What Workers' Compensation Costs for General Contractors in Colorado
The cost of workers' compensation insurance for general contractors in Colorado can vary, but estimated premiums range from $55 to $215 per month. Factors that affect the cost of this coverage include revenue, payroll, coverage limits, deductible, and claims history. For example, a general contractor in Denver with a high-risk job site, such as a construction site with heavy equipment, may pay more for workers' compensation insurance due to the increased risk of injury. On the other hand, a general contractor with a low-risk job site, such as a small renovation project, may pay less. Understanding these factors can help you lower your premium and get the best rate for your business.
How to Get Workers' Compensation in Colorado
To get workers' compensation insurance in Colorado, you'll need to gather some information, including your business revenue, payroll, and any contract limit requirements. You should also consider the specific risks associated with your business, such as the type of work you do and the location of your job sites. For example, if you're a general contractor in Colorado Springs, you may need to consider the risk of hailstorms and heavy snowfall, which can increase the cost of your premium. Once you have this information, you can compare workers' compensation quotes from different insurers to find the best rate for your business. Have your revenue, payroll, and contract limit requirements ready, and compare Workers' Compensation quotes today.
Frequently asked questions
Will my Workers' Compensation premium jump after one claim?＋
Yes, it may. A single claim can increase your premium, but the amount depends on the severity of the claim and your claims history. For example, if you have a high-risk job site and an employee is injured, your premium may increase more than if you had a low-risk job site and an employee was injured.
Can I get a COI same-day for a client?＋
Yes, you can. Many insurers offer same-day certificates of insurance (COI) for clients, which can be essential for meeting contract requirements. However, you'll need to provide the necessary information, such as your business details and coverage limits, to obtain the COI. It's also important to note that some insurers may charge a fee for same-day COIs, so be sure to ask about any additional costs when requesting the certificate.
Does a sole proprietor need Workers' Compensation?＋
No, not always. In Colorado, sole proprietors are not required to have workers' compensation insurance, but they may still want to consider it to protect themselves and their business. If you're a sole proprietor and you hire subcontractors or employees, you may need to have workers' compensation insurance to cover them.
What's not covered by Workers' Compensation?＋
Workers' compensation insurance does not cover damages to equipment or property, which would be covered under a different policy, such as general liability insurance. Additionally, it does not cover injuries that occur outside of work or that are not related to the job. For example, if an employee is injured while commuting to work, workers' compensation would not cover the medical bills. However, if the employee is injured while working on a job site, workers' compensation would cover the medical bills and lost wages.
Can I cancel my Workers' Compensation policy at any time?＋
Yes, you can, but you may face penalties or fees for early cancellation. Additionally, if you're required to have workers' compensation insurance by law or contract, cancelling your policy could result in fines or legal action, so it's crucial to maintain continuous coverage to avoid any potential consequences.
How do I lower my Workers' Compensation premium?＋
You can lower your workers' compensation premium by maintaining a safe work environment, reducing your claims history, and implementing safety protocols. Additionally, you can shop around for quotes from different insurers to find the best rate for your business. Some insurers also offer discounts for businesses with good safety records or that implement specific safety measures, such as drug-free workplace programs or employee training initiatives. By taking these steps, you can reduce your premium and save money on your workers' compensation insurance.
Do I need to have Workers' Compensation insurance for all my employees?＋
Yes, you do. In Colorado, workers' compensation insurance is required for all employees, including part-time and seasonal workers. This means that if you have any employees, you need to have workers' compensation insurance to cover them. However, you may not need to cover independent contractors or subcontractors, depending on the specific circumstances and your contract requirements.
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Other coverages general contractors in Colorado should know
This article is for general educational purposes and is not insurance or legal advice. Coverage requirements and pricing in Colorado change over time and vary by business. Verify current rules with the Colorado Department of Insurance and a licensed agent before purchasing a policy.