In most states, workman comp insurance mandatory if you hire employees, so in this case there is no question about whether you need it or not. You are required to purchase it when you hire a new employee, because it provides protection from financial loss.
When you have employees, you must have coverage because there is always the possibility of them getting injured while working or getting sick with a professional illness and you do not want to be held financially reliable because, in some cases, this might ruin your business, not to mention that there is a possibility that you also face civil or criminal penalties.
Workers comp insurance Colorado coverage only applies to events that happen after you purchase it, so you should not postpone getting your policy.
Here are a few other things that you should know about this type of insurance:
- workman comp requirements are impacted by the number of your employees, exemptions and your location; if you have employees in more than one state, you will have to get insurance based on the laws of each state.
- In some states, if you are sole proprietor or self-employed, it is your choice to purchase workman comp for yourself; in others, it is an obligation.