Colorado requires that every public and private employer, with very few exceptions, carry workers’ compensation coverage to cover its employees if the employee becomes injured while on the job. This rule applies to both full time and part-time employees.
Colorado employers are responsible for obtaining workers’ compensation insurance, paying for it, and ensuring that the policy remains in place. Colorado employers typically purchase workers’ compensation insurance through a commercial insurance carrier but may also obtain it through self-funding coverage.
However, sometimes an employer may not know about the requirement for it to obtain and maintain workers’ compensation insurance, or it may inadvertently allow its workers’ compensation insurance to lapse. Employers who fail to provide workers’ compensation insurance face fines from $250 to $500 per day. These penalties may continue to accumulate without the employer learning of them or being notified by Colorado’s Department of Labor and Employment until the penalty reaches a colossal amount, sometimes in the six figures.