Is Workers Comp Required in Colorado If I Have Employees, and Who Can Help in Colorado Springs?

Quick answer

Generally, yes. Colorado employers with one or more employees must maintain workers' compensation, including for part-time and family employees, subject to limited exemptions. Classification depends on the actual working relationship, not only whether someone receives a 1099. Main Street Insurance is a Colorado Springs independent broker. We shop 25+ carriers and help you understand what the carriers need before we quote. Call 719-309-6439. We do not publish a workers' compensation rate here. Confirm exemptions with the Colorado Division of Workers' Compensation.

Hiring your first employee changes the insurance conversation.

General liability is built for certain third-party claims. It is not a substitute for workers' compensation. If someone who works for you is hurt on the job, those two policies are answering different questions. We would rather explain that split now than have you find it after an injury.

Main Street Insurance - Patrick Murakami Agency shops workers' compensation as an independent broker in Colorado Springs. We are not tied to one company. We compare available options across more than 25 carriers and start with how the business actually operates.

For the rest of a commercial program, use our Colorado Springs commercial insurance guide. The longer workers' compensation product page is here. This page is the requirement question.

What Colorado generally requires

Colorado employers with one or more employees generally must maintain workers' compensation coverage. That includes part-time employees. It includes family employees. Limited exemptions exist. We do not list those exemptions as legal advice on this page.

Worker classification is based on the actual relationship. A 1099 form by itself does not decide the question. If the person is treated as an employee in the work, carriers and the state will look at that relationship. Confirm classification and any exemption with the Colorado Division of Workers' Compensation.

We will not tell you to skip coverage. If you think you are exempt, verify it with the Division. Then talk with us about what the carriers will still want to see.

What workers' compensation is for

Workers' compensation provides medical benefits and wage replacement for employees who are injured or become ill on the job. On a typical program, coverage discussions include:

  • Medical expenses for work-related injuries and illnesses
  • Lost wages and disability benefits for injured employees
  • Rehabilitation and physical therapy costs
  • Death benefits for families of employees killed on the job
  • Legal defense costs if injury claims are disputed
  • Protection from employee lawsuits related to workplace injuries, subject to the law and the policy
  • Occupational diseases and repetitive-stress injuries

That is the employee side. The employer side is compliance with Colorado law and a way to respond when someone is hurt at work.

It does not replace general liability. It does not replace commercial auto. It is not inside a standard business owner's policy. Those are added separately.

Who this applies to in Colorado Springs

Most Colorado Springs businesses with employees should review workers' compensation. Our workers' compensation page already names construction companies and contractors, restaurants and hospitality, retail, manufacturing and warehouses, healthcare facilities and medical offices, office-based businesses, service providers and professional firms, businesses employing Fort Carson military spouses, and companies with remote workers based in Colorado.

That matches the commercial clients we already serve: contractors, retailers, restaurants, professional firms, property owners, nonprofits, healthcare practices, and service companies across El Paso County.

If you are a solo contractor with no employees, workers' compensation may not be the first policy. General liability and a certificate of insurance often are. If you add help — even part-time or family help — revisit this page. Do not assume a 1099 solves it.

Contractors bidding jobs are commonly asked for workers' compensation on the certificate along with general liability and commercial auto. Requirements vary by owner, general contractor, municipality, and project.

What affects a workers' compensation quote

There is no single rate that applies to every Colorado Springs business. We will not invent one on this page.

Carriers look at the work being done, industry, payroll, the number of employees, prior claims, and how long the business has operated. A contractor, a restaurant, a retailer, and a professional office are not rated the same way. Safety controls and a clear description of duties help. A vague description does not.

Helpful items to have ready:

  • Legal business name, address, and ownership
  • A plain description of operations and job duties
  • Employee count, including part-time and family
  • Payroll by type of work, if you have it
  • Whether you use subcontractors, and whether they provide their own certificates
  • Current policy, experience history, or loss runs if you have them
  • Any contract or certificate wording that lists workers' compensation

If you do not have payroll split out yet, call anyway. We will tell you what the application still needs.

How this sits next to a BOP and general liability

A business owner's policy commonly bundles general liability and commercial property. It usually does not include workers' compensation. Buying a BOP does not finish the employee question.

General liability commonly addresses third-party bodily injury and property damage. It generally does not cover employee work injuries.

If employees drive for work, that can be a commercial auto question as well. Hired and non-owned auto may apply when personal vehicles are used for company business, subject to the policy.

We build the program around the operation, the people, the vehicles, and the contracts. One policy is rarely the whole answer. The FAQ says the same thing in shorter form.

Who shops this for you

Main Street Insurance is the Patrick Murakami Agency. We are an independent broker in Colorado Springs. Patrick founded the agency in 2019. His Colorado license is 266853. We shop more than 25 carriers. We are BBB A+ rated. Best of Springs Bronze in 2021 and 2023. Silver in 2024.

We work Monday through Friday, 9 a.m. to 5 p.m. America/Denver. Evening and weekend consults can be arranged. Ask when you call.

We serve military families, veteran-owned businesses, and the broader Pikes Peak community. If you employ Fort Carson military spouses or local residents, say so. It helps us describe the operation accurately. It does not change Colorado's employee rule.

Meet the people who will actually shop this on our team page.

Talk with us before the first hire sits uncovered

If you already have employees and no workers' compensation, start with a call. If you are about to hire, start before the first day. We will tell you what we can shop. We will not tell you that a 1099 is enough.

Call or text 719-309-6439 or request a quote. Email PatrickM@Themainstreetagency.com.

Office: 6805 Corporate Drive Ste 170, Colorado Springs, CO 80919.

Education first. Confirm legal requirements with the Colorado Division of Workers' Compensation. Then let us shop the coverage that matches the people who work for you.

Frequently asked questions

Is workers compensation required in Colorado if I have employees?

Generally, yes. Colorado employers with one or more employees must maintain workers' compensation, including for part-time and family employees, subject to limited exemptions. Confirm classification and exemptions with the Colorado Division of Workers' Compensation. Main Street Insurance can shop coverage for Colorado Springs businesses.

Does Colorado require workers comp for one employee or part-time help?

Generally, yes. The live standard we use is one or more employees, including part-time and family employees, subject to limited exemptions. Do not assume a small payroll or a family member removes the requirement. Verify any exemption with the Division.

Does a 1099 mean I do not need workers compensation?

Not by itself. Worker classification is based on the actual relationship, not simply whether someone receives a 1099. If the person functions as an employee, treat this as a workers' compensation question and confirm it with the Division.

What does workers compensation insurance cover?

It is built for work-related employee injuries and illnesses. Discussions typically include medical expenses, lost wages and disability benefits, rehabilitation, death benefits, and defense of disputed injury claims, subject to the policy and Colorado law. It is not a substitute for general liability or commercial auto.

Who can help me shop workers compensation in Colorado Springs?

Main Street Insurance. We are a Colorado Springs independent broker. We shop 25+ carriers and start with payroll, duties, and how you actually staff the work. Call 719-309-6439 or use the quote form.

Does a BOP include workers compensation?

Usually no. A business owner's policy commonly bundles general liability and commercial property. Workers' compensation, commercial auto, and professional liability are added separately.

Do contractors need workers compensation to bid jobs?

Often the certificate asks for it when you have employees. Requirements vary by owner, general contractor, municipality, and project. Common requests include general liability, workers' compensation, commercial auto, and specific endorsements. See our COI page.

What should I have ready when I call?

Business name and operations, employee count, payroll if you have it, whether you use subcontractors, any current policy or loss runs, and any contract wording that lists workers' compensation. If you do not have all of that, call anyway.

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