Colorado workers' comp rates depend on your industry and team size. Find answers to common coverage questions below.
Best Workers' Comp Insurance in Colorado
With rates starting at $6 monthly, The Hartford, NEXT and Simply Business offer the cheapest and best workers' comp insurance in Colorado.
Compare top Colorado workers’ comp insurance providers and find your ideal coverage.
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Updated: November 23, 2025
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Best Colorado Workers' Comp Insurance: Fast Answers
What are the best and cheapest workers' comp insurance providers in Colorado?
The Hartford offers the top cheap workers' compensation insurance in Colorado. The following are the state's cheapest and best workers' comp insurance providers and their average monthly rates:
- The Hartford: $68
- NEXT: $68
- Simply Business: $71
- Coverdash: $72
- biBerk: $74
Is workers' comp insurance required in Colorado?
Yes, Colorado mandates workers' comp insurance for most employers with employees. Key exemptions include sole proprietors without employees, independent contractors meeting specific criteria and certain agricultural workers. Employers who fail to carry required coverage face penalties up to $500 per day plus potential criminal charges and civil liability for workplace injuries.
How much does workers' comp insurance cost in Colorado?
Colorado's workers' compensation insurance costs about $437 annually per employee for small businesses. Costs vary based on your industry risk level and payroll size. Low-risk businesses like speech therapy pay around $36 per employee yearly, while high-risk industries such as roofing face costs of approximately $4,948 per employee annually.
How do you get workers' comp insurance in Colorado?
You can get workers' comp coverage in Colorado by:
- Purchasing policies from licensed private insurance companies operating in the state
- Securing coverage through the state's assigned risk pool when standard market options aren't available
- Qualifying for self-insurance status if your business meets Colorado's strict financial and operational requirements
Many business owners compare quotes online or through brokers to get the best rate and compliance support.
What does Colorado workers' comp insurance cover?
Workers' compensation in Colorado covers:
- All medical expenses for work-related injuries and occupational illnesses
- Wage replacement benefits during recovery periods or permanent disability
- Vocational retraining assistance when employees cannot return to previous roles
- Survivor benefits for families of workers who die from job-related incidents
Best Workers' Comp Insurance Companies in Colorado
The Hartford leads workers' comp insurance in Colorado with solid financial strength and comprehensive coverage options that protect businesses thoroughly. NEXT and Simply Business rank second and third, offering dependable alternatives for small business owners seeking quality protection.
| The Hartford | 4.64 | $68 | 2 | 3 |
| NEXT Insurance | 4.61 | $68 | 1 | 2 |
| Simply Business | 4.53 | $71 | 5 | 1 |
| Coverdash | 4.46 | $72 | 6 | 2 |
| biBERK | 4.44 | $74 | 2 | 5 |
| Nationwide | 4.43 | $80 | 2 | 4 |
| Progressive Commercial | 4.40 | $70 | 7 | 5 |
| Hiscox | 4.38 | $71 | 4 | 6 |
| Thimble | 4.35 | $70 | 8 | 5 |
| Chubb | 4.27 | $84 | 3 | 4 |
How Did We Determine These Rates and Rankings?
These rates are estimates based on MoneyGeek's analysis of small businesses with two employees across 79 major industries. Actual rates vary based on your business location, industry risk factors, claims history, coverage limits and individual insurer underwriting criteria. Contact insurers directly for personalized quotes.
Get Matched to Top Workers' Comp Insurers in Colorado
Select your industry and state to get a customized Colorado workers' comp quote from your top provider match.
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LEARN MORE ABOUT THE BEST BUSINESS INSURANCE IN COLORADO
Explore the best business insurance providers in Colorado through our guides:
Best Colorado Workers’ Comp Insurance Company Reviews
We evaluated top insurers across the state to identify the best workers' comp coverage options for businesses.
The Hartford
Best Workers' Comp Insurance in Colorado
MoneyGeek Rating
4.6/ 5
4.6/5Affordability
4.6/5Customer Experience
4.7/5Coverage Points
Average Monthly Workers' Comp Premium
$68We analyzed thousands of workers' compensation quotes from insurers operating in Colorado across 79 industriesWorkers' Comp Claims Processing Score
4.5/5 (1st)Rating based on customer satisfaction with claims handlingWorkers' Comp Customer Likelihood to Be Recommended to Others Score
4.5/5 (2nd)Likelihood customers would recommend this provider
NEXT
Best Colorado Workers' Comp Insurance: Runner-Up
MoneyGeek Rating
4.6/ 5
4.4/5Affordability
4.7/5Customer Experience
4.8/5Coverage Points
Average Monthly Workers' Comp Premium
$68Based on average costs across multiple business typesWorkers' Comp Claims Processing Score
3.9/5 (4th)Rating from verified customer survey responsesWorkers' Comp Customer Likelihood to Be Recommended to Others Score
4.8/5 (1st)Percentage of customers who would recommend NEXT
Cheapest Workers' Comp Insurance Companies in Colorado
The Hartford offers the most affordable workers' compensation insurance in Colorado, at just $68 per month or $812 annually, 7% below the state average. This means you'll save $5 each month compared to average coverage costs.
NEXT and Thimble round out the top three cheapest options, both offering competitive monthly rates under $70. The table below shows costs from all companies we analyzed.
| The Hartford | $68 | $812 |
| NEXT Insurance | $68 | $821 |
| Thimble | $70 | $839 |
| Progressive Commercial | $70 | $842 |
| Hiscox | $71 | $848 |
| Simply Business | $71 | $848 |
| Coverdash | $72 | $864 |
| biBERK | $74 | $890 |
| Nationwide | $80 | $960 |
| Chubb | $84 | $1,008 |
How Did We Determine These Rates?
These rates represent small businesses with two employees across 79 major industries and focus solely on workers' comp policies. Your actual premium depends on your business location, industry, employee count, claims history, coverage limits and other factors insurers consider.
Cheapest Workers' Comp in Colorado by Industry
Thimble delivers the lowest workers' comp rates for dental practices at just $10 monthly or $122 annually. Thimble ranks cheapest across 11 industries, including ad agencies, wholesale and veterinary businesses. NEXT takes second place, offering the most affordable coverage in 23 industries like automotive, bakery and welding sectors.
| Accountants | The Hartford | $19 | $226 |
| Automotive | NEXT Insurance | $108 | $1,297 |
| Ad Agency | Thimble | $15 | $175 |
| Auto Repair | Progressive Commercial | $140 | $1,677 |
| Beauty Salon | NEXT Insurance | $13 | $160 |
| Bakery | NEXT Insurance | $49 | $588 |
| Bakery | The Hartford | $49 | $588 |
| Barber | NEXT Insurance | $13 | $154 |
| Candle | The Hartford | $36 | $437 |
| Bounce House | Simply Business | $37 | $443 |
| Bounce House | NEXT Insurance | $37 | $443 |
| Cannabis | biBERK | $85 | $1,018 |
| Cleaning | The Hartford | $44 | $532 |
| Catering | Chubb | $84 | $1,008 |
| Computer Programming | Thimble | $26 | $312 |
| Coffee Shop | Progressive Commercial | $43 | $510 |
| Construction | Simply Business | $165 | $1,984 |
| Computer Repair | Progressive Commercial | $22 | $259 |
| Consulting | The Hartford | $27 | $326 |
| Courier | The Hartford | $205 | $2,465 |
| Contractor | Thimble | $149 | $1,783 |
| Daycare | Progressive Commercial | $12 | $148 |
| Dental | Thimble | $10 | $122 |
| Dog Grooming | The Hartford | $59 | $707 |
| DJ | NEXT Insurance | $13 | $157 |
| Electrical | NEXT Insurance | $52 | $626 |
| Drone | NEXT Insurance | $24 | $289 |
| Ecommerce | NEXT Insurance | $20 | $239 |
| Excavation | NEXT Insurance | $96 | $1,146 |
| Engineering | Simply Business | $36 | $431 |
| Food | NEXT Insurance | $40 | $480 |
| Florist | NEXT Insurance | $55 | $659 |
| Funeral Home | Simply Business | $24 | $292 |
| Food Truck | NEXT Insurance | $41 | $497 |
| Gardening | The Hartford | $42 | $506 |
| Home-based | Thimble | $9 | $112 |
| Handyman | Thimble | $85 | $1,025 |
| Hospitality | The Hartford | $63 | $752 |
| Janitorial | Progressive Commercial | $44 | $528 |
| HVAC | The Hartford | $57 | $688 |
| Jewelry | The Hartford | $27 | $319 |
| Lawn/Landscaping | Progressive Commercial | $35 | $421 |
| Junk Removal | Simply Business | $127 | $1,526 |
| Manufacturing | NEXT Insurance | $53 | $634 |
| Lawyers | The Hartford | $48 | $576 |
| Massage | The Hartford | $13 | $162 |
| Marine | The Hartford | $137 | $1,644 |
| Moving | Simply Business | $241 | $2,890 |
| Mortgage Broker | The Hartford | $13 | $155 |
| Mortgage Broker | Thimble | $13 | $155 |
| Painting | Progressive Commercial | $130 | $1,555 |
| Nonprofit | The Hartford | $29 | $354 |
| Party Rental | Thimble | $34 | $411 |
| Pest Control | Progressive Commercial | $64 | $765 |
| Personal Training | Progressive Commercial | $23 | $271 |
| Pharmacy | NEXT Insurance | $6 | $70 |
| Pet | The Hartford | $28 | $333 |
| Physical Therapy | The Hartford | $6 | $75 |
| Photography | NEXT Insurance | $15 | $185 |
| Pressure Washing | biBERK | $85 | $1,024 |
| Plumbing | NEXT Insurance | $58 | $698 |
| Real Estate | Thimble | $28 | $334 |
| Retail | Thimble | $32 | $389 |
| Restaurant | NEXT Insurance | $58 | $693 |
| Security | NEXT Insurance | $48 | $571 |
| Roofing | biBERK | $837 | $10,043 |
| Software | NEXT Insurance | $24 | $291 |
| Snack Bars | The Hartford | $39 | $473 |
| Speech Therapist | The Hartford | $6 | $67 |
| Spa/Wellness | The Hartford | $16 | $192 |
| Tech/IT | The Hartford | $24 | $294 |
| Startup | NEXT Insurance | $12 | $142 |
| Transportation | The Hartford | $204 | $2,450 |
| Travel | The Hartford | $6 | $74 |
| Trucking | The Hartford | $242 | $2,907 |
| Tree Service | NEXT Insurance | $205 | $2,463 |
| Tutoring | NEXT Insurance | $9 | $108 |
| Veterinary | Simply Business | $18 | $214 |
| Wholesale | Thimble | $37 | $448 |
| Wedding Planning | Progressive Commercial | $26 | $312 |
| Welding | Progressive Commercial | $107 | $1,288 |
| Window Cleaning | The Hartford | $186 | $2,228 |
How Much Is Workers' Comp Insurance in Colorado?
Colorado's workers' comp insurance cost runs $73 monthly ($873 annually), sitting just below the national average of $74. Rates swing dramatically by industry, from speech therapists at $6 monthly ($3 per employee) to roofers at $825 monthly ($413 per employee).
| Accountants | $20 | $241 |
| Ad Agency | $16 | $189 |
| Auto Repair | $150 | $1,798 |
| Automotive | $117 | $1,402 |
| Bakery | $53 | $631 |
| Barber | $14 | $168 |
| Beauty Salon | $14 | $172 |
| Bounce House | $40 | $475 |
| Candle | $40 | $478 |
| Cannabis | $83 | $992 |
| Catering | $73 | $875 |
| Cleaning | $48 | $576 |
| Coffee Shop | $46 | $551 |
| Computer Programming | $28 | $336 |
| Computer Repair | $24 | $284 |
| Construction | $178 | $2,141 |
| Consulting | $30 | $357 |
| Contractor | $164 | $1,965 |
| Courier | $226 | $2,707 |
| DJ | $14 | $167 |
| Daycare | $13 | $159 |
| Dental | $11 | $132 |
| Dog Grooming | $63 | $762 |
| Drone | $26 | $317 |
| Ecommerce | $22 | $258 |
| Electrical | $56 | $676 |
| Engineering | $38 | $457 |
| Excavation | $105 | $1,261 |
| Florist | $60 | $717 |
| Food | $42 | $505 |
| Food Truck | $45 | $543 |
| Funeral Home | $26 | $316 |
| Gardening | $46 | $556 |
| HVAC | $62 | $746 |
| Handyman | $93 | $1,120 |
| Home-based | $10 | $119 |
| Hospitality | $69 | $829 |
| Janitorial | $48 | $573 |
| Jewelry | $30 | $357 |
| Junk Removal | $139 | $1,666 |
| Lawn/Landscaping | $37 | $448 |
| Lawyers | $52 | $624 |
| Manufacturing | $58 | $702 |
| Marine | $149 | $1,792 |
| Massage | $15 | $174 |
| Mortgage Broker | $14 | $165 |
| Moving | $260 | $3,119 |
| Nonprofit | $32 | $380 |
| Painting | $139 | $1,672 |
| Party Rental | $36 | $438 |
| Personal Training | $25 | $296 |
| Pest Control | $69 | $832 |
| Pet | $30 | $365 |
| Pharmacy | $6 | $76 |
| Photography | $17 | $201 |
| Physical Therapy | $7 | $82 |
| Plumbing | $63 | $759 |
| Pressure Washing | $82 | $986 |
| Real Estate | $30 | $356 |
| Restaurant | $63 | $751 |
| Retail | $34 | $414 |
| Roofing | $825 | $9,896 |
| Security | $51 | $617 |
| Snack Bars | $43 | $514 |
| Software | $26 | $317 |
| Spa/Wellness | $17 | $206 |
| Speech Therapist | $6 | $72 |
| Startup | $13 | $155 |
| Tech/IT | $27 | $321 |
| Transportation | $226 | $2,710 |
| Travel | $7 | $84 |
| Tree Service | $219 | $2,633 |
| Trucking | $267 | $3,203 |
| Tutoring | $10 | $119 |
| Veterinary | $19 | $232 |
| Wedding Planning | $28 | $337 |
| Welding | $116 | $1,393 |
| Wholesale | $40 | $480 |
| Window Cleaning | $207 | $2,488 |
Colorado Workers' Comp Insurance Cost Factors
These cost factors affect workers' compensation insurance rates in Colorado:
Colorado's Competitive Rating System with 25% Adjustment Range
Colorado gives insurance companies unusual pricing flexibility. Carriers can adjust their filed base rates up or down by 25%. Underwriters reward your business with credits up to 25% below standard rates for strong safety records or solid management practices, while applying debits up to 25% above base rates for higher-risk operations.
Consecutive Years of Rate Decreases
The Colorado Division of Insurance approved a 4.3% reduction in average loss costs for 2025, marking the 11th straight year without an increase and creating a cumulative 53.5% decrease. These declining costs reflect fewer workplace injuries and shorter recovery times. When insurers pay out less in claims, they charge you lower premiums.
Pinnacol Assurance as Insurer of Last Resort
Pinnacol Assurance serves as Colorado's state-chartered insurer of last resort, covering more than 50,000 companies. This creates market stability, allowing private carriers to charge competitive rates. Pinnacol returned roughly $15 million in dividends to more than 47,000 policyholders in 2025, effectively reducing your net premium costs if you're a member.
Multistate Workforce Challenges
Pinnacol cannot cover residents outside Colorado. If you need coverage for out-of-state employees, Pinnacol must partner with insurers in those states, boosting your premium costs by 20%. National carriers may offer lower overall premiums for multistate coverage, though they lack Pinnacol's Colorado expertise and dividend programs.
Strict Construction Industry Requirements
Colorado requires construction businesses to verify that contractors carry workers' compensation insurance. If your contractor lacks proper coverage and their worker gets injured on your project, you could become responsible for their claim. Insurers factor this potential liability into your premiums, driving up costs for construction businesses with poor documentation practices.
Severe Uninsured Employer Penalties
Colorado fines employers up to $500 per day per employee for failing to maintain adequate insurance and charges an additional 25% penalty if a claim occurs while you're uninsured. This aggressive enforcement creates a compliant insurance market, benefiting you through lower overall rates when most employers participate and create a stable risk pool.
Universal Coverage Requirement
Colorado requires all employers with one or more employees to carry workers' compensation insurance, regardless of whether employees work part-time or are family members. This universal requirement creates the broadest possible insurance pool, helping keep your rates low. Insurers spread risk across more policyholders, reducing the per-business cost.
Self-Insurance Option for Large Employers
Colorado allows self-insurance for companies that have operated continuously for five years or more and employ 300 or more full-time workers in Colorado. Self-insurance lets large employers bypass traditional premiums and pay only actual claims costs plus administrative expenses, potentially cutting costs by 15% to 30%.
How Much Workers' Comp Insurance Do I Need in Colorado?
Colorado requires all employers with one or more employees to carry workers' compensation insurance, whether your staff works part-time, full-time or are family members. Your policy works differently from auto insurance. Colorado mandates specific benefit levels rather than coverage limits: injured workers receive two-thirds of their average weekly wages (capped at $1,396.85 weekly for 2025 to 2026) plus unlimited medical treatment for work-related injuries.
Your total annual payroll and industry classification determine your premium. Failing to maintain the required workers' compensation coverage brings serious consequences: fines up to $500 per day per employee, potential business shutdown and an additional 25% penalty if a claim happens while you're uninsured.
Colorado Workers' Comp Insurance Exemptions
While you're required to have coverage in Colorado, some business categories are exempt from workers' comp requirements:
- Sole proprietors, general partners, corporate officers and LLC members: You're not required to carry coverage for yourself if you own at least 10% of your business (corporate officers and LLC members must hold specific leadership positions like president, vice president, secretary, treasurer or chairman of the board).
- Construction industry owners: If you're a sole proprietor or partner in construction, Colorado requires you to either purchase workers' compensation insurance for yourself or formally file a rejection of coverage form with the state.
- Independent contractors: You're exempt if you control how you perform your work and operate an independent business providing the same type of services (simply paying someone with a 1099 doesn't automatically make them an independent contractor).
- Casual workers earning under $2,000 annually: Maintenance workers, repair workers, farm workers and ranch workers are exempt if you pay them less than $2,000 per calendar year.
- Domestic workers: Nannies, au pairs and household help are exempt if they work less than 40 hours per week AND less than five days per week (both conditions must be met).
- Real estate agents and brokers: Agents working entirely on commission are exempt from coverage requirements.
- Motor carriers and rideshare drivers: Drivers under lease agreements with contract transportation carriers like Uber and Lyft are exempt under specific circumstances.
- Ski volunteers: Unpaid volunteers at ski areas don't require coverage.
- Federal employees and railroad workers: These workers receive coverage under federal workers' compensation programs rather than Colorado state coverage.
FEDERAL WORKERS' COMP PROGRAMS OVERRIDE STATE REQUIREMENTS
Colorado employers don't need state workers' compensation coverage for federal government employees, who receive benefits through the Federal Employees' Compensation Act. FECA covers all civilian federal workers in Colorado and provides wage replacement, medical treatment and survivor benefits for work-related injuries or occupational diseases.
Railroad workers in Colorado get coverage through the Federal Employers' Liability Act instead of state workers' comp. Colorado exempts independent contractors and volunteers from workers' compensation requirements, as they aren't classified as employees under state law.
How to Get the Best Workers' Comp Insurance in Colorado
Finding the right workers' comp coverage for your specific industry protects your business from costly claims while keeping premiums manageable.
- 1Determine if you need workers' comp coverage in Colorado
Colorado requires workers' comp insurance once you hire your first employee, whether they work part-time or full-time. Family members on your payroll count as employees too. Independent contractors don't need coverage, but here's the catch: Colorado presumes anyone you pay is an employee unless you can prove they control their own work and run an independent business. Misclassify someone and you'll face fines up to $500 per day.
- 2Gather your business information
You'll need your employee count, total annual payroll and Colorado-specific classification codes before requesting quotes. Colorado uses its own Wage Class codes from the Division of Workers' Compensation, not the NCCI codes other states use. Get your payroll numbers right because your insurer will audit actual wages at renewal and adjust your premium.
- 3Request workers' comp quotes from multiple carriers
Get quotes from at least three licensed Colorado carriers so you can compare business insurance costs for your industry. Colorado eliminated its state fund in 2000, which means you'll buy coverage from private insurers or qualify for self-insurance. Request all quotes using the same payroll and classification details to see the real cost of your coverage across different carriers.
- 4Research providers with industry experience
Don't just chase cheap business insurance rates. Find carriers who know Colorado's workers' comp system and understand your industry's specific risks. Restaurant owners benefit from insurers offering kitchen safety programs. Tech companies need carriers providing ergonomic assessments. Construction firms should work with insurers experienced in Colorado's designated provider list requirements, which work differently than other states.
- 5Evaluate your top provider options
Compare each insurer's service quality to find the best insurance for your business:
- Check claim response times and customer satisfaction ratings through Colorado's Division of Insurance complaint database
- Verify the carrier provides designated provider lists, which Colorado requires you to maintain and give to injured workers
- Ask about safety training resources, return-to-work programs and premium discounts for maintaining safe workplaces
- Review the insurer's financial strength ratings from AM Best or Standard & Poor's to confirm they can pay claims when you need them
- 6Review and purchase your workers' compensation policy
Read your policy terms carefully before signing. Make sure your coverage starts immediately and includes everyone on your payroll. Colorado fines employers $500 daily for operating without required coverage, plus 25% of any injured worker's benefits. Consider pay-as-you-go payment plans that calculate premiums based on actual payroll each pay period instead of estimated annual wages.
- 7Reassess before annual renewal
Review your policy 60 to 90 days before it renews. Let your insurer know about any business changes like new hires or expanded operations. Your experience modification rate adjusts each year based on your claim history compared to similar Colorado businesses. Even if you haven't filed claims, expect rate increases from rising medical costs. Shop your coverage annually to confirm you're getting competitive rates.
Best Colorado Workers' Compensation Insurance: Bottom Line
The Hartford, NEXT and Simply Business rank as Colorado's top workers' comp insurers. Research each company's service quality, maximize discounts and select coverage that fits your budget.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
sources
- Colorado Division of Insurance. "Workers' Compensation Insurance Loss Cost Average Continues Decreasing for 53.5% Cumulative Reduction Over 11 Years." Accessed December 20, 2025.
- Colorado Department of Labor and Employment. "Workers' Compensation." Accessed December 20, 2025.
- Colorado Department of Labor and Employment. "Workers' Compensation Insurance Requirements." Accessed December 20, 2025.
- Insurance Journal. "Pinnacol Assurance Giving $15M Dividend to Colorado Businesses." Accessed December 20, 2025.
- PR Newswire. "Pinnacol Assurance Achieves Highest Injured Worker Satisfaction Score in Colorado for the 9th Consecutive Year." Accessed December 20, 2025.