NEXT is Colorado’s best workers’ compensation insurance provider, scoring almost a perfect rating with 98 out of 100 points. It offers reliable customer service and very low workers' comp rates. Pie and Thimble are good runners-up that you should also consider for coverage.
Cheapest Workers' Comp Insurance in Colorado
Updated: June 2, 2025
Advertising & Editorial Disclosure
Key Takeaways
NEXT, Pie, Thimble, biBerk and The Hartford are our top picks for the best cheap workers' comp insurance providers in Colorado.
For most small businesses in Colorado, workers' compensation coverage costs around $668 per year or $59 per month.
Workers' comp insurance is required in Colorado for all companies with employees to cover expenses from employees sustaining injuries or illnesses during business activities.
Best Cheap Workers’ Comp Insurance Companies in Colorado
| NEXT | 98 | $106 |
| Pie | 90 | $136 |
| The Hartford | 90 | $225 |
| Thimble | 88 | $177 |
| biBerk | 87 | $245 |
| Nationwide | 86 | $255 |
*Rates and scores are for software development businesses with small (five employees), medium (20 employees) and large (100 employees) operations, aggregated for an overall best recommendation.
NEXT: Best Overall
pros
Outstanding customer service ratings
Most cost effective option in Colorado
Receive quotes instantly through the website
cons
Less affordable for business with over 50 employees
COMPANY HIGHLIGHTS
NEXT earned our top spot for business insurance in Colorado due to their excellent balance of affordability and service, insuring over 600,000 clients across 1,300 business types with a 4.7/5 star rating. They offer instant digital access to certificates, 24/7 chat support, and save customers an average of $30 monthly compared to the next most affordable provider.
How Much Is Workers' Comp Insurance in Colorado?
Depending on the size of your Colorado-based business, workers' comp rates vary anywhere from $668 to $5,617 per year. However, this is for software development companies; your rates will vary depending on how many employees you have, the risk of your industry, the work your employees do individually, and your claims history.
| Larger small businesses | $484 | $5,617 |
| Businesses with five or less employees | $59 | $668 |
| Medium-size small businesses | $121 | $1,397 |
Factors That Impact Workers’ Compensation Costs in Colorado
The cost of workers' compensation insurance varies for each business, depending on several factors that influence coverage costs including the following: industry type, payroll size, and claims history.
Payroll costs
Workers' compensation premiums are calculated per $100 of payroll, meaning businesses with higher payroll expenses pay more than those with lower payroll costs.
Number of employees
Companies with a large number of employees face a higher risk of employee injury, which can increase insurance premiums.
Employee class code
Class codes identify employee job types and set rates per $100 of payroll, with high-risk industries like construction and manufacturing typically paying higher rates than lower-risk fields like consulting and software development.
Previous claims
Insurance claims directly impact business insurance costs, as frequent or high-value claims signal increased risk to insurers and typically result in higher premiums at renewal. Businesses with clean claims histories often qualify for lower rates, while those with multiple claims may face significant premium increases or difficulty obtaining coverage.
Colorado Workers' Comp Insurance: Buyer's Guide
Navigating business insurance is often a complicated task, so we've broken down how to get the best workers' comp coverage, who needs it, and what this type of policy covers to guide you.
How to Get the Best Workers' Comp Insurance in Colorado
Below we detail the best steps to take to ensure you get the best workers' comp policy possible for your organization.
- 1
Learn about required coverages and options
State regulations vary widely, so research requirements first and consider how your industry, company size, and claims history affect coverage needs. Consult a business insurance agent before purchasing to ensure you get the right amount of workers' compensation coverage for your specific situation.
- 2
Research costs and providers
Research average costs and providers specific to your business type to identify which companies to request quotes from while also exploring state-provided options and self-insurance possibilities in your state.
- 3
Consult similar businesses
Connect with similar businesses in your community to learn about their workers' compensation experiences, coverage needs, and provider choices for personalized insights to guide your decision.
- 4
Compare multiple providers through different means
Get multiple quotes using different methods—online comparison sites and agents—to compare providers on equal terms and find the best coverage and pricing for your specific business needs.
Do You Need Workers’ Compensation Insurance in Colorado?
Workers' compensation insurance is mandatory for all businesses in the state, though sole proprietors, partners, and corporate officers with full ownership can opt out of coverage.
WORKERS’ COMP PENALTIES IN COLORADO
Colorado employers are legally required to maintain workers' compensation insurance coverage and face significant penalties for non-compliance. The following sanctions may be imposed for failing to meet state requirements:
- Daily fines: Up to $500 per day for every day operating without insurance coverage (starting at $250 per day, escalating to $500 for multiple violations).
- Business shutdown: State can issue cease and desist orders forcing businesses to stop all operations until proper coverage is obtained.
- Personal liability for claims: Employers must pay for employee injury claims themselves plus an additional 25% penalty if uninsured when the injury occurs.
- Increased benefit payments: Workers' compensation settlements are increased by 50% if the employer failed to maintain insurance during the injury period.
- Criminal charges: Potential felony charges for flagrant violations and failure to comply with stop-work orders.
What Does Workers’ Compensation Insurance Cover in Colorado?
Workers' compensation insurance provides vital benefits to employees experiencing work-related injuries or illnesses. This coverage usually encompasses medical care, disability benefits, lost wages and more for impacted workers, paying out 66% of weekly wages according to Colorado law. This not only safeguards their employees but also defends the business against potential legal claims associated with workplace injuries or illnesses.
Best Workers' Compensation Insurance Colorado: Bottom Line
The top three best and most affordable workers' comp insurance providers in Colorado are NEXT, Pie, and Thimble. While these companies are our recommendations, we urge you to compare rates for yourself and consult similar businesses in your industry to get the best deal.
Workers' Comp Insurance Colorado: FAQ
Below are answers to frequently asked questions about Colorado workers' comp insurance from our MG experts:
Which company has the best workers’ compensation insurance in Colorado?
NEXT leads the Colorado workers' compensation market with competitive pricing averaging $106 monthly and an exceptionally low complaint index. The optimal insurance choice for your business will depend on factors such as your industry type, workforce size, and specific state compliance requirements.
Does Colorado require businesses to have workers’ compensation insurance?
Yes, workers' compensation insurance is mandatory for most Colorado businesses. While all businesses with employees must carry coverage, sole proprietors, partners, and corporate officers with full ownership can opt out of this requirement.
How much does workers’ compensation insurance cost in Colorado?
Small businesses with medium-sized workforces in Colorado typically pay approximately $121 monthly for workers' compensation insurance.
How We Rated Workers' Comp Insurance Companies in Colorado
MoneyGeek calculated workers' compensation insurance rates using a software development business with five, 20 and 100 employees to represent various organization sizes.
Our scoring methodology included:
- Affordability (60%): Overall cost compared to other providers and different business profiles
- Customer experience (30%): Ratings from actual customers, J.D. Power studies, AM Best financial stability ratings and our team's experience with quote processes
- Coverage (10%): Additional options beyond standard offerings and breadth of industries served
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!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- NEXT. "Customer Reviews." Accessed June 2, 2025.
- Pinnacol. "Experience theCARE behind Colorado's top-rated workers' compensation." Accessed June 2, 2025.