How to Tell if Your Business Needs Workers’ Comp Insurance

If you’re starting up a new business in the Lakewood, CO area, you may be curious if you will need to carry workers’ compensation insurance.  In Colorado, all private and public employers are required to provide workers’ compensation insurance if one or more persons are hired for full- or part-time employment.  By law, a person hired to perform services is considered an employee and there few exceptions to this definition.  Here are the few exceptions to a business being required to carry workers’ comp insurance.

Exceptions

  • Some casual repair or maintenance work is done for a business that does not exceed $2,000 in a calendar year.
  • Domestic work for a private homeowner that is not full time.  Work consisting of over 40 hours a week or five or more days a week.
  • Licensed real estate brokers and agents that work on commission.
  • Independent contractors that perform hire for transport jobs and other independent contractors that do not fall under the employee definition. 
  • Drivers under a lease agreement that have a common contract carrier.
  • Some volunteer work may be an exception.
  • Host home services that are part of residential support services.

There may be other situations that can fall under the exception rule, but you want to be sure.  In general, unless your business falls under these few exceptions, your company will need to carry workers’ compensation insurance.

Colling Insurance Services, Inc.

Colling Insurance Services, Inc. operating in Lakewood, CO specializes in customized insurance products to meet the simple or complex needs for your business. If you are uncertain about the need for workers’ comp insurance for your business, contact a Colling agent today.  Our agents can help you navigate the workers’ compensation laws and feel confident you have the coverage necessary.