Demystifying Colorado Workers' Compensation Laws for Businesses

2. As a responsible business owner in Colorado, ensuring the safety and well-being of your employees is a top priority. This includes providing protection in the unfortunate event of a work-related injury or illness. Colorado's workers' compensation laws are designed to help you do just that. Let’s break down the complexities of Colorado’s workers’ comp system so you can understand your obligations and confidently navigate the process. Understanding Colorado Workers’ Compensation Law Under Colorado’s Workers’ Compensation Act, a “no-fault” system is in place. This means that eligible employees receive benefits for work-related injuries or illnesses regardless of who was at fault. This approach simplifies the compensation process for employees while offering some liability protection for employers. Exemptions from Colorado Workers’ Compensation Law While most businesses with employees in Colorado are required to carry workers’ compensation insurance, there are a few exceptions: Sole Proprietors and Partners: These individuals are generally not covered unless they opt for elective coverage. Independent Contractors: Independent contractors are not considered employees and therefore aren’t covered under workers' comp laws. Proper classification of workers is critical, as misclassification can lead to significant penalties. Domestic Workers: Those employed in private homes typically fall outside the scope of workers' comp requirements. What Does Colorado Workers’ Compensation Insurance Cover? Typically, workers’ compensation insurance covers:

3. Medical Expenses: All necessary medical treatments related to the work- related injury or illness, including doctor visits, hospital stays, surgeries, and rehabilitation. Lost Wages:A portion of the employee’s wages lost while they are unable to work due to injury or illness. Disability Benefits: For severe injuries that result in temporary or permanent disability, benefits may be provided to compensate for lost earning capacity. Vocational Rehabilitation: If an injury or illness prevents an employee from returning to their original job, the insurance may cover retraining for a new occupation. What Is Not Covered by Colorado Workers’ Compensation Laws? Workers' comp does not cover: Intentional Injuries: Self-inflicted injuries or those sustained while under the influence of drugs or alcohol are typically not covered. Non-Work-Related Injuries or Illnesses: Coverage only applies to injuries or illnesses that occur in the course of employment. Pain and Suffering: Emotional distress or pain and suffering related to the injury are not covered. Combined Benefits Cap Colorado enforces a combined benefits cap, which limits the total benefits an employee can receive under workers' comp. This cap applies to a combination of temporary partial disability benefits, temporary total disability benefits, and permanent total disability benefits. How Much Does Workers’ Compensation Cost in Colorado?

4. The cost of workers' compensation insurance in Colorado varies based on several factors, including: Industry: Businesses in high-risk industries, such as construction or manufacturing, typically pay higher premiums. Payroll: The total wages paid to employees play a major role in determining policy costs. Loss History: A history of workplace injuries may lead to higher premiums. Experience Rating: Businesses with effective safety programs may qualify for discounts. Timelines for Filing a Workers’ Comp Claim in Colorado Employees in Colorado must adhere to specific timelines when filing a workers' compensation claim: Report the Injury: Employees must notify their employer of a work-related injury or illness as soon as possible, but no later than four days after the accident. File a Claim: Employees have two years from the date of injury to file a formal claim with the Colorado Division of Workers’ Comp. Request a Hearing: If an employee disagrees with the employer's or insurer's decision, they have 30 days to request a hearing before an administrative law judge. Appeal a Decision:If dissatisfied with the administrative law judge’s ruling, the employee can appeal to the Colorado Court of Appeals within 30 days. Get Reliable Workers’ Compensation Coverage with Spotlight Insurance Agency Partnering with Spotlight Insurance Agency ensures your business is protected, and your employees receive the care they need in the event of a work-related injury or

5. illness. Contact us today to navigate the complexities of Colorado workers’ compensation laws. Call us at 720-923-1500 to create a safe work environment for your employees and help your business thrive.