Workers Comp Insurance

What is Workers Compensation?

Workers compensation laws were created to ensure that employees who are injured on the job are provided with fixed monetary awards. This eliminates the need for litigation and creates an easier process for the employee. It also helps control the financial risks for employers since many states limit the amount an injured employee can recover from an employer.

Workers Compensation Insurance is designed to help companies pay these benefits. As a protection for employees, Colorado requires that employers carry some form of Workers Compensation Insurance. Workers Compensation Insurance is not health insurance. Workers Compensation is designed specifically for injuries sustained on the job.

Workers compensation in the state of Colorado is a state-mandated, "no-fault" insurance system that pays benefits to workers injured on the job. Workers compensation needs to be obtained by any employer who has an employee and this coverage needs to be obtained before the employees first day of work. There are a few circumstances where employers can be exempt. In return for carrying a workers compensation policy, employers receive immunity from civil lawsuits filed by employees over workplace injuries.

Colorado has workers compensation laws that allow certain types of businesses to choose to be exempt from providing workers comp insurance. If an employer chooses to be exempt from providing workers compensation insurance they are still responsible to provide benefits to an injured worker. These employers also remain exposed to civil lawsuits brought by employees who are injured during work.

Do I need workers compensation insurance?

Employers have a legal responsibility to their employees to make the workplace safe. However, accidents happen even when every reasonable safety measure has been taken.

To protect employers from lawsuits resulting from workplace accidents and to provide medical care and compensation for lost income to employees hurt in workplace accidents, in almost every state, businesses are required to buy workers compensation insurance. Workers compensation insurance covers workers injured on the job, whether they're hurt on the workplace premises or elsewhere, or in auto accidents while on business. It also covers work-related illnesses.

Workers compensation provides payments to injured workers, without regard to who was at fault in the accident, for time lost from work and for medical and rehabilitation services. It also provides death benefits to surviving spouses and dependents.

Each state has different laws governing the amount and duration of lost income benefits, the provision of medical and rehabilitation services and how the system is administered. For example, in most states there are regulations that cover whether the worker or employer can choose the doctor who treats the injuries and how disputes about benefits are resolved.

Workers compensation insurance must be bought as a separate policy. Although in-home business and business owner's policies (BOPs) are sold as package policies, they don't include coverage for workers' injuries.

FAQs

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• The State of Colorado requires you to carry workers compensation and you fail to do so, you are exposed to severe civil penalties and fines. The employer can also be liable for the costs of any injuries suffered by your employees.

• Virtually all types of work-related physical injury and industrial illness are covered by workers' compensation. Very commonly covered conditions include repetitive-stress injuries (RSIs) like carpal-tunnel syndrome (CTS), back injuries, traumatic injuries, wounds or bodily reactions to substances. Many states also cover mental or emotional harm, but the standards for psychological coverage vary greatly from state to state. Pre-existing conditions are generally not covered unless aggravated at work.