One question many business owners ask is whether workers’ compensation coverage is needed in their state. In most cases, the answer is yes.

If you have a business in Colorado, you must know that local requirements include mandatory workers’ comp insurance for all businesses, full or part time, in the public or private sector.

workers' comp insurance Colorado

Law-abiding employers are generally immune from lawsuits caused by injured workers.

While workers’ compensation insurance is mandatory in most states, the way coverage is sold varies from state to state. Most states allow the sale of workers’ compensation insurance by private insurance companies, as long as they meet the state`s financial requirements. There are a few states that prevent this practice – we are talking about the so-called monopolistic states, which prohibit the sale of workers’ compensation insurance by private insurers. However, Colorado is not among them.

Colorado is an NCCI state. The specific functions performed by the NCCI differ.  In some states, NCCI deals with the evaluation of experience, including the calculation of experience modifiers. It also develops and maintains the classification and rating system used in the NCCI states. In addition, the NCCI creates and publishes notices and forms used to issue workers comp insurance Colorado policies.