workers compensation insurance Colorado

Worker’s compensation insurance is a type of insurance policy that provides coverage for companies that have employees who have suffered injuries in the course of work. The insurance carried by the employer provides wage replacement and helps the employer cover medical expenses as well as rehabilitation costs for the employee.

Worker’s compensation insurance is mandatory in almost every state. Any company that has employees other than the owner need to purchase a worker’s compensation insurance, regardless of the type of activity pursued by the company. The costs related to the insurance will depend on the amount and type of the risks posed by the company’s activity and the company’s payroll list – business activities are divided into classes based on the risks posed and the higher-risk activities will entail higher insurance costs as well. The worker’s compensation benefits are awarded on a no-fault basis, that is, in case the employee is not under the influence of drugs and/or alcohol.

The failure to purchase a workers compensation insurance Colorado plan might have dire consequences in case an employee of the uninsured company suffers work-related injury and the state in which the company activates makes the policy mandatory. The consequences might include having to pay the employee’s claim out of pocket, fines, even imprisonment and the withdrawal of the right to conduct business in the state.