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Colorado Workers Compensation Insurance

Workers Compensation - What is it?

Colorado Workers Compensation is a state mandated coverage for all Colorado companies to cover employees income and medical costs for injuries that occur while working. The coverage is mandatory for most Colorado companies and employees with a few exceptions.

Do I need Colorado Workers Compensation for my company and employees?

Colorado Businesses need to provide coverage if they have one or more part-time or full time employees. There are a few exceptions including: Maintenance or repair work for less than $2,000 per year, certain domestic work, maintenance or repair work for a private homeowner on a part-time basis, Licensed real estate agents and brokers working on commission, for-hire transportation jobs done by independent contractors, drivers with common or contract carrier lease agreement, home services as part of residential services and supports, and Federal employees covered elsewhere.

Colorado business owners with 10% or more ownership can opt out of Colorado workers compensation. Additionally officers, LLC members and sol propriotors can decline Colorado Workers compensation coverage on themselves. There is an opt out form that would need to be filed with the state to be in compliance. Additionally, they would need to provide coverage for their full or part time employees with few exceptions.

If you have a question regarding your business and Workers Compensation, please feel free to call a Madison Insurance Group Agent to discuss.

Why choose Madison Insurance Group as your Colorado Workers Compenastion agent?

Madison Insurance Group has been a Colorado insurance agency for over 15 years. We represent clients both large and small with their workers compensation insurance needs. We know the Colorado insurance market place and will not only search for the best insurance rates but provide top notch service so you can focus on your business. Before you renew, please let us provide a quote.

What information should I have ready when I speak to an agent?

Please have a copy of your current plan and bill, number of current full time employees, number of current part time employees, annual payroll for W-2 employees, annual payroll for 1099 employees, Tax ID #, name and location of your business. Also, please be prepared to answer a few questions about your business. We are looking forward to speaking with you.

Colorado Workers Compensation Insurance - Details on the program

What will workers compensation insurance cover for my Colorado employees?

The Colorado Workers Compensation insurance program will provide the following for your employees if they get sick or injured on the job:

Medical Benefits - covers medical costs associated with injury or sickness

Disability Benefits - with varing payments based on severity of disability

Disfigurment Benefits - benefits for severe injuries

For more information on Colorado Workers comp, please click here for the state of Colorado's "Employer's Guide to Workers Compensation".

What if I have employees in other states?

If your Colorado based business has employees in other states we can work with our numerous workers compensation insurance providers to insure those employees under the same policy. We would need payroll and job dutes for all employees by state. From there we would work with our partners to provide the state mandated plans where your emploiyees are located.

Colorado Workers Compensation - On job safety tips and resources

Many of our Colorado Wokers Compensation carriers are dedicated to providing information to your company on safety and creating a safety culture. If you are interested in obtaining this information, please contact us.

Some additional tips on safety:

Management support and direction — Management must be a role model for safety. This includes establishing the company's safety vision, goals, and rules, as well as "walking the talk" in everyday safety practices.

Active safety committee — Safety committees should serve as a conduit for all safety efforts and companywide communication regarding safety. That's why all areas of the company must be represented on the committee.

Employee accountability and participation — Everyone must be accountable for safety in the workplace, and feel empowered to take steps to ensure their own safety and the safety of their fellow employees.

Ongoing safety training — Routine, effective training must be available (and mandatory) for all employees.

Comprehensive claims management — Having a written claims management policy and a return-to-work program are instrumental in helping you control costs if an injury occurs.

What is used to calculate my Colorado Workers Comp premium?

Payroll

Payroll is one of the primary factors used to determine workers' compensation premiums, although it isnot the only one. Classification codes and experience modifiers, both assigned by the National Council on Compensation Insurance (NCCI), are two of the other factors that usually figure most prominently in the calculations of your premiums.

Classification Codes

In part, your premium is determined by a "classification code" assigned to your industry (e.g., painting, retail, etc.) by the NCCI. This code is based on the history of injuries associated with your industry.

When an industry — say, construction — experiences more worker injuries, the classification code can change and raise rates on all companies within that industry. That’s why we're committed to helping all policyholders keep their employees safe, as well as providing industry-specific safety programs to industries with historically higher injury rates.

Experience Modifier

An experience modifier (or "e-mod") is a numerical rating assigned to your policy, also by NCCI, based on your company’s accident history. This number is used as a multiplier against the average premium rate of companies in your industry — in other words, a roofing business is compared only to other roofing businesses.

If your e-mod is lower than the industry average (1.00), your premium will be, too; if higher than average, your premium will reflect this as well. Pinnacol can help you keep your e-mod (and premium) low through our many safety services and return-to-work programs.