To make the area of worker's comp more clear, here’s helpful information provided by Pinnacol Assurance, the largest workers’ compensation carrier in Colorado.
Does my business need a workers’ compensation policy?
Colorado law requires any business with one or more employees to carry workers’ compensation or workmans’ compensation insurance. Sole proprietors and partners in a business are not considered employees and are not required to be covered on a policy. Corporate officers and members of limited liability companies who are active in the company are considered employees, but they may be eligible to exempt themselves from coverage. They must meet certain statutory conditions to reject coverage. For information on other exemptions, please refer to Pinnacol Assurance’s Employer’s Guide to Workers’ Compensation or contact the Division of Workers’ Compensation.
What happens if my business doesn’t have a workers’ compensation policy?
Employers have sole responsibility to provide insurance for their employees. If a company is unlawfully uninsured at the time of an injury, the employer must pay all statutory medical and disability benefits for the injured employee and an additional 50 percent of all temporary, permanent, and disfigurement benefits for having been uninsured.
If you don’t provide a policy, you may find yourself in the cross hairs of a workers' comp lawyer. Typically, such attorneys will try to get more than just the medical bill covered. Most Colorado workers’ comp attorneys will seek damages for factors that affect the household and not just the employee. If you have a policy, Colorado workmans’ compensation rules say an employee cannot sue the employer and use the services of a workers’ comp attorney to receive additional damages.
Reducing Costs the Wise Way
The cost of an injury can (and more than likely will) be far more expensive than if your company carried a workers’ compensation policy. Plus, a comprehensive safety program can reduce your premiums and risk exposure. If you are looking for first time coverage, planning to renew your current policy or interested in reducing your risk, give StaffScapes and call and learn how can help bring more cost effective coverage to your business.
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If you think someone who knows the ins and outs of Workers' Compensation could benefit your business, rely on a team that has been helping Denver area businesses grow, thrive and remain secure for over 20 years. Get in touch with us today, and let’s begin making your business better.