Workers' compensation insurance may be purchased from one
of over two hundred private insurance companies authorized to conduct
business in the State of Colorado. Coverage may be purchased from any
authorized insurance company
Am I
exempt
from carrying workers’ compensation coverage
if I’m an independent contractor?
Generally, an independent contractor is a person who
contracts to complete a specific project for another business for a
set price. The independent contractor must be: (1) free from control
and direction over the means and method of performing work; and (2)
customarily engaged in an independent trade, occupation, profession
or business related to the work being performed. While a business
and an independent contractor may help establish independence in a
written document, the actual facts will determine whether a
particular worker qualifies as an independent contractor. If the
independent contractor has employees, workers' compensation
insurance for the employees must be obtained.
Can my business be
self-insured for workers’ compensation?
Colorado
workers' compensation statutes allow employers, meeting strict
financial and loss control standards, to self-insure this risk.
Authorized by special permit, such workers' compensation obligations
are paid directly from the earnings and assets of the employer.
Permits to self-insure individual companies are obtained through the
Division of Workers' Compensation. Employers applying for
self-insurance must regularly employ 300 or more employees in
Colorado or be a division or subsidiary of a parent company that has
a minimum of $100,000,000 in assets.
