Workers' Compensation by state

Workers' compensation requirements in Colorado

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Direct answer

Does Colorado require workers' compensation insurance?

Yes. Colorado requires workers' compensation coverage once a business has one or more employees, under the Colorado Workers' Compensation Act. Colorado requires all public and private employers with one or more employees, full-time or part-time, to carry workers' compensation coverage.

Reviewed by Cornerstone Staff28 years of financial services state licensing experienceLast verified July 29, 2026

How the mandate works

Colorado requires all public and private employers with one or more employees, full-time or part-time, to carry workers' compensation coverage. Coverage can be purchased from a private insurer, through Pinnacol Assurance, or via an approved self-insurance program.

Coverage trigger: One or more employees
If you go without coverage: Employers without required coverage can face daily fines, cease-and-desist orders, and direct liability for benefits and damages when a worker is injured.

Notable exemptions

Exemptions are narrow and fact-specific; confirm your situation with the regulator or an agent before relying on one.

Sole proprietors, partners, and certain LLC members with no employees
Casual maintenance or repair work below statutory pay and time limits
Domestic workers who work limited hours in a private residence

Statutes and sources

Colorado Workers' Compensation Act

Colo. Rev. Stat. sect. 8-40-101 et seq.

Regulator: Colorado Division of Workers' Compensation . Last verified 2026-07-29 from the official source .

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