Who is entitled to Workers' Compensation? With few exceptions, all public and private employers in Colorado must provide Workers' Compensation insurance coverage for their full and part-time salaried employees. An employee is defined as a person who performs a service for pay.

Sole proprietors, corporate officers who own more than 10 percent of company stock and members of limited liability companies (LLC) are eligible, but not required to have Workers' Compensation insurance. They may elect to opt-out of Workers' Compensation coverage by submitting a corporate officer rejection form to their insurance carrier.

How does Workers' Compensation work? Workers' Compensation provides employees with reasonable and necessary medical treatment and income replacement while they recover from work-related injuries or illnesses. Workers' Compensation also distributes a death benefit for fatal work-related injuries or illnesses.

Workers' Compensation insurance is "no-fault" insurance. An employer pays a premium to provide his employees broad protection in exchange for indemnification from litigation that may result from a work-related injury or illness.

How are premiums calculated? Premiums are calculated based on pre-determined job class codes assigned to job-related tasks. Although some job descriptions easily match the class codes, others are linked on a "best-fit" basis, by choosing the most applicable job description/class code combination.

Premiums are then calculated by a formula that matches the payroll to class code risk at a rate per hundred. Additional credits and/or discounts may be available from the insurance carrier's underwriter.

How can I be sure my premiums are calculated properly? Reviewing your company's current job descriptions can result in a significant reduction in your annual Workers' Compensation premium. CWCN is committed to offering comprehensive Premium Analysis and Review services to our clients.

Contact Us to request a free safety analysis and premium review with no obligation.