Do I Need Workers' Compensation Insurance?

As an employer, how do I know whether I have to carry workers' compensation insurance?

All public and private employers in Colorado, with limited exceptions, must provide workers' compensation coverage for their employees if one or more full or part-time persons are employed. A person hired to perform services for pay is presumed by law to be an employee. This includes all persons elected or appointed to public sector service and all persons appointed or hired by private employers for remuneration. There are a few exemptions to this definition.

There are some exemptions from coverage requirements for specific occupations and individuals?

The following is only a partial list of occupations and/or individuals excluded from mandatory coverage under the Workers' Compensation Act. The Division of Workers¿ Compensation can provide detailed information on exemptions. You may also access Sections 8-40-301 and 8-40-302 of the  Colorado Workers' Compensation Act   for additional information on this by clicking on the links above.

  • Certain casual maintenance or repair work performed for a business for under $2,000 per calendar year
  • Certain domestic work, maintenance or repair work for a private homeowner that is not done full time
  • Licensed real estate agents and brokers working on commission
  • Independent contractors who perform specific for-hire transportation jobs
  • Drivers under a lease agreement with a common or contract carrier
  • Any person who volunteers time or services for a ski area operator
  • Persons who provide host home services as part of residential services and supports
  • Federal employees (covered under federal laws) Railroad employees (covered under federal laws) Independent contractors who are generally defined in the section: What is an independent contractor?

I am an owner of a business and I don't have any employees.  Do I need to carry the insurance on myself?

A corporate officer of a corporation or a member of a limited liability company may elect to reject the requirement to carry workers' compensation insurance. The election to reject coverage is completed by providing written notice on a form available from the Division. This form may be accessed through the "Official Forms"  link on the side menu bar or by clicking here   .
A corporate officer is defined as the chairperson of the board, president, vice-president, secretary, or treasurer who is an owner of at least ten percent of the stock of the corporation and who controls, supervises or manages the business affairs of the corporation. A member is defined as an owner of at least ten percent of the membership interest of the limited liability company at all times and who controls, supervises, or manages the business affairs of the limited liability company.

Additional Resources:

For additional employer information, to request a copy of the Employer's Guide or to access the information via the division website click on  Employer's Guide .

You can also access the "Workers Compensation Insurance Requirements For Employers" brochure by clicking on the  Publications  link on the side menu bar.