When Is a Business Required To Cover Workers’ Compensation for Their Employees?

What Does a Colorado Business Have To Cover in Workers’ Compensation?

Under the Colorado Workers’ Compensation Act (Title 8, Articles 40-47 of the Colorado Revised Statutes), a Colorado business has to cover necessary expenses related to an employee’s accident and injury.

So exactly what does workers’ compensation cover? Let’s take a closer look.

• Medical bills: This includes paying for all bills related to care for the employee’s injuries.
• Lost wages in workers’ compensation: This covers employees if they are unable to come back to work because of their injury.

Additionally, if the employee has a permanent disability, the employer must provide compensation based on a schedule for each type of injury, or they must continue to pay wages.

Colorado Workers’ Compensation Payment Rules

Here’s when a business is required to cover workers’ compensation for their employees:

• Because of the injury, the employee misses three shifts or three days of work.
• The injured employee must report the injury or accident within four days. If you report the injury late, you can still recover for your injuries, but there’s a penalty.
• The employer must pay ⅔ of the employee’s average weekly wages.
• Wage payments are capped at 91% of the average weekly wage in the State of Colorado.
• For injuries occurring between July 1, 2025, and June 30, 2026, the maximum cap has increased to $1,396.85 per week.
• Payments continue until the employee returns to full work or until the employee has received the maximum medical benefit from treatment.
• In cases of permanent disability, whether full or partial, there’s additional compensation to the employee for the loss.
• Missing a medical appointment can result in termination of benefits.

It’s important to note — if you skip or miss your doctor’s appointments or treatments, your benefits can be suspended. It’s important that you keep up with all your doctor’s appointments and medical guidance to continue receiving the compensation you’re owed.

Can I Go to My Own Doctor for Workers’ Compensation?

An employer may send the employee to the medical care provider of the employer’s choice. If the employee wants to go to their own doctor, the employer doesn’t have to foot the bill. The injured employee can only pick their own doctor if the employer doesn’t have a specific doctor that they want the employee to go to.

Colorado Workers’ Compensation Insurance Requirements

Under Colorado law, all employers, regardless of size or the number of employees, are required to carry workers’ compensation insurance. It also does not matter whether the employer is public or private, all employers must provide workers’ compensation for their employees. When a person performs services in exchange for pay, the law presumes that they’re an employee.

There are some exceptions to this rule. For example, if your business operates as a sole proprietorship or you are self-employed, you do not need to carry workers’ compensation insurance.

You can learn more about Colorado workers’ compensation guidelines and laws by visiting the state’s Department of Labor and Employment website. Get insight into the state’s laws, legal protections for employees, and much more.

Do I Need Workers’ Comp Insurance If I Am the Only Employee?

No. If you are the only employee, you do not need workers’ comp insurance. You’re only exempt from workers’ comp if you’re self-employed. If you’re the sole employee of someone else’s business, they still need to have an insurance policy for you. It’s also important to note that some business contracts require self-employed parties to carry workers’ compensation insurance.

Do Employees Get Paid While on Workers’ Comp?

Yes, partially. While on workers’ comp, employees get paid a percentage of their wages. They don’t get the full amount that they would be making if they were at work. However, they get some compensation up to a maximum amount. The maximum amount is based on the employee’s income and average wages in the state.

Do Members of an LLC Need Workers’ Comp?

No. Members of an LLC do not need workers’ comp, as long as they don’t have employees. If you have employees, you have to have workers’ comp that cover your employees. However, you can exclude yourself and the other members from coverage.

Does Workers’ Comp Pay for Pain and Suffering?

No. Workers’ comp does not pay for pain and suffering. Workers’ comp pays for medical expenses and lost wages. It does not award the victim any compensation for pain and suffering that’s been caused by the injury.

However, there may be other avenues available to seek compensation for pain and suffering after a work-related injury. Speak with one of our experienced attorneys to learn more about your options if you’d like to explore available avenues.

Do I Need Workers’ Comp for One Employee in Colorado?

Yes, you need workers’ comp for one employee in Colorado. State law requires any business that employs even one worker to carry workers’ compensation. Although premiums vary based on the number of employees, even one employee is enough to require an employer to carry workers’ compensation insurance.

Business Requirements for Workers’ Compensation Coverage in Colorado

Workers’ compensation in Colorado is a two-way street. It’s up to the business to have the insurance coverage that state law requires. But it’s up to the employee to report the claim.

Similarly, it’s up to the business to cover medical care and pay lost wages. But it’s up to the employee to attend medical appointments. A business must cover workers’ compensation in Colorado when the law requires them to pay benefits, and when an employee makes a valid claim.

Contact Our Denver Workers’ Compensation Attorneys

Do you need help with a workers’ compensation claim? Are you wondering if your employer owes you payments for a work-related injury or illness? If so, we can help.

Our workers’ compensation attorneys in Denver are determined, aggressive legal professionals. It’s our passion to fight for victims who need help exercising their rights under Colorado law.

Each work injury case is complex. Whether you need help getting the right medical care and getting it paid for, recovering fairly for lost work or seeking compensation through a third-party negligence claim, our attorneys can determine what you need to do and execute a plan that advocates for your rights and best interests.

Don’t become a victim twice. Our Colorado attorneys are standing by to answer your questions and begin learning about your case.

Contact us today for a free and confidential consultation. We are conveniently located at five Colorado locations near you in Denver, Fort Collins, Colorado Springs, Aurora, and Englewood. Our attorneys are ready to serve you and fight for the compensation you deserve.

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