MoneyGeek evaluated affordability, customer satisfaction, financial stability and the convenience of obtaining online quotes to pick the best workers’ compensation insurance in Colorado. We found that Pie is the best overall provider in Colorado.
Workers' compensation insurance is crucial for small business owners for a number of reasons. While this coverage is required by law in Colorado, it also protects both the employer and the employee by covering medical expenses and lost wages resulting from a work-related injury.
Best Workers’ Compensation Insurance in Colorado
Best Workers’ Compensation Insurance in Colorado
Pie offers the best workers’ compensation insurance in Colorado with a MoneyGeek score of 92 out of 100. The average monthly cost of a policy with Pie is $73, but this price can vary [depending on factors] (#factors-that-impact-workers-comp) such as the size of your business, the industry your business is in, the number of employees you have and your claims history.
How was this MoneyGeek score calculated?
- Offers the most affordable rate in Colorado at $73 per month
- Allows users to get a quote in just 44 seconds
Pie is the cheapest option for workers’ compensation insurance in Colorado. The average monthly cost of a policy is just $73 — however, it’s important to keep in mind that your actual rate may vary. Getting a quote from Pie takes just 44 seconds, the fastest time of all the companies we analyzed in Colorado.
Pie has also secured over $300 million in funding to support its innovative approach to small business insurance, highlighting its commitment to customers. However, note that Pie received the highest volume of customer complaints of the companies we analyzed in the state and an A- rating for financial stability from AM Best.
- Costs an average of $113 per month
- Received the highest customer satisfaction score in Colorado
- Awarded an A+ AM Best rating
Founded in 1810, The Hartford provides dependable service and ranks as the second-best workers’ compensation insurance company in Colorado. As per data from the National Association of Insurance Commissioners (NAIC), the company boasts an impressively low rate of customer complaints, ensuring policyholders receive exceptional support and service.
When it comes to affordability, The Hartford ranks as the third most cost-effective option among the six insurers we analyzed in Colorado. The company holds an esteemed A+ AM Best rating, signifying its commitment to fulfilling its obligations to policyholders. However, it falls short in terms of a speedy quote process, with an average time of two minutes and 24 seconds required to generate a quote.
- Policies cost an average of $135 per month
- A++ rating from AM Best for financial stability
- High customer satisfaction rating
Despite being slightly expensive at around $135 per month, biBERK's workers’ compensation insurance in Colorado is accompanied by remarkable financial stability. The company's outstanding A++ rating from AM Best, the highest achievable rating, establishes biBERK as a reliable provider.
Additionally, biBERK has received commendable customer satisfaction ratings, demonstrating its dedication to delivering excellent service and support. The quote process is also efficiently handled, taking an average of just one minute and 25 seconds.
- Monthly policy rates available for $100, on average
- Quotes available in just one minute and 26 seconds
- A+ rating from AM Best
Ranked as the second most affordable workers’ compensation insurance option in Colorado, Thimble offers coverage to small businesses at an enticing average monthly rate of $100. The company distinguishes itself by providing swift quotes, with an average response time of one minute and 26 seconds. Furthermore, Thimble holds an esteemed A+ rating from AM Best, affirming its capacity to fulfill claim obligations.
However, according to NAIC ratings for its underwriters, namely National Specialty Insurance Company and Markel Insurance Company, Thimble has received a notable number of customer complaints. While it boasts competitive pricing and a rapid quote process, prospective customers should consider these complaint ratings before choosing this insurer.
- Policies cost an average of $132 per month
- Tied for the highest customer satisfaction score of companies analyzed in Colorado
- Takes just over two minutes to get a quote
Next's workers' compensation insurance is priced at approximately $132 per month, placing it on the higher end of the cost spectrum among insurers in Colorado. However, Next excels in customer satisfaction, delivering exceptional service and support to policyholders.
The company also offers relatively quick online quotes, with an average quote generation time of just two minutes and 17 seconds for prospective customers. However, it is important to consider that Next holds an A- rating from AM Best, indicating slightly lower financial stability compared to other insurers in Colorado.
- Charges monthly premiums of $137
- A+ financial strength rating from AM Best
- High customer satisfaction
Among the providers we evaluated, Nationwide offers the highest monthly premiums, averaging $137. However, it compensates for this with its impressive A+ financial strength rating from AM Best, highlighting the company's robust financial stability and capacity to fulfill policyholder obligations.
Furthermore, Nationwide takes pride in its high customer satisfaction, reporting minimal customer complaints. On the downside, the quote process is relatively sluggish, with an average time of just over three minutes. This may be considered a drawback for individuals seeking a swift and streamlined experience.
Cheapest Workers’ Compensation Insurance in Colorado
With an average monthly premium of $73, Pie offers the cheapest workers’ compensation insurance in Colorado. This provider is the optimal choice for businesses with 20 employees and an annual payroll cost of $1,250,000. It's important to note that your business’ premium may vary depending on the number of employees you have and your payroll amount, as these factors can impact the final cost of coverage.
Pie is a perfect match for business owners who prioritize limited financial resources and budget-consciousness. It stands out as the most cost-effective choice, with a yearly premium of $872, which is $210 lower than the next most affordable option, Thimble. Additionally, Pie excels in providing swift quotes, taking only 44 seconds to generate them. However, it is important to note that Pie received the highest number of customer complaints based on NAIC ratings of any provider we analyzed in Colorado, which is an important factor to consider when choosing a provider.
Although we utilized average monthly cost to rank the most affordable workers’ compensation insurance in Colorado, it’s important to keep in mind that the cheapest option for your business may vary depending on other factors, including the size of your business, your industry and your claims history.
However, to assist you in comparing costs, we have provided a table below that illustrates the average annual and monthly expenses for insuring a Colorado business with 20 employees. These companies have been ranked based on their monthly cost to help you find the insurer that will most likely be the cheapest available option.
Best Workers’ Compensation Insurance for Micro Businesses in Colorado
MoneyGeek's top choice for micro businesses in Colorado, which typically consist of five employees and have an annual payroll of $312,500, is The Hartford, which charges an average monthly premium of $55. Note that businesses with one to nine employees are generally categorized as micro businesses. While the number of employees impacts the cost of workers’ compensation insurance in Colorado, the payroll amount typically is a more influential factor on rates.
When it comes to workers' compensation insurance for micro businesses in Colorado, The Hartford emerges as MoneyGeek’s top pick with monthly premiums of $55. The company's outstanding customer satisfaction track record guarantees dependable service and support. Additionally, The Hartford boasts an A+ AM Best rating, further affirming its ability to fulfill its obligations. While the company excels in these aspects, it is crucial to consider other factors like coverage options and additional services when evaluating insurance policies.
Best Workers’ Compensation Insurance for Midsize Businesses in Colorado
Pie provides the best workers’ compensation insurance in Colorado for businesses with 100 employees and an annual payroll of $6,250,000. With a monthly premium of $307, Pie offers attractive, low-cost coverage. Although the number of employees affects the cost of workers' compensation insurance, payroll typically carries greater weight in determining premiums.
Pie is the best option for midsize businesses in search of workers’ compensation insurance in Colorado, surpassing competitors in multiple areas. It boasts the most affordable pricing, with an annual cost of $3,677. Additionally, Pie excels in generating quotes swiftly, taking a mere 44 seconds to complete the process. However, it is important to consider that Pie has received the highest number of complaints of any insurer in Colorado and holds a slightly less favorable financial rating of A- from AM Best.
How Much Is Workers’ Compensation Insurance in Colorado?
For a business with 20 employees, the average monthly expense of workers’ compensation insurance in Colorado is $115, which falls below the national average of $168 per month.
In this analysis, our policy limits were established as follows: a total policy limit of $1 million, a per-accident limit of $1 million and a per employee limit of $1 million.
The total policy limit signifies the maximum coverage amount provided by the insurer throughout the policy period. The per-accident limit represents the highest coverage available for a single incident, while the per employee limit indicates the maximum coverage applicable to an individual employee. Any costs exceeding these limits would require out-of-pocket payment.
The table below presents the average cost of workers' compensation insurance for businesses with five, 20 and 100 employees. Note that employee count and payroll are the primary factors that significantly impact your premium rates.
How was this cost calculated?
Factors That Impact Workers’ Compensation Costs in Colorado
The cost of workers' compensation insurance varies across businesses because it relies on multiple factors, including previous claims history, employee class code classification and other factors explored below.
Businesses generally incur charges based on a rate for every $100 of payroll. Increased payroll costs lead to higher workers’ compensation insurance premiums, as increased payroll costs correlate with a higher potential liability and risk exposure for the insurer. In Colorado, the average premium index rate in 2022 stood at $0.93 per $100 of payroll, the 10th-lowest rate in the U.S.
Number of employees
Companies that employ a larger workforce are exposed to an elevated risk of employee injury, which can subsequently result in increased insurance premiums. The greater the number of employees in a business, the higher the probability of workplace incidents, ultimately leading to higher insurance expenses.
Employee class code
Employee class codes serve as indicators for the specific type of work performed by employees. Each class code corresponds to a specific rate charged for every $100 of payroll. Industries with a higher risk of injury, such as construction, typically entail higher rates than lower-risk industries, like consulting.
Businesses that have a history of frequent or severe workers’ compensation claims may be charged higher insurance premiums. Data from the U.S. Bureau of Labor Statistics (BLS) reveals that the private industry recorded a total of 2,607,900 non-fatal cases nationally in 2021. This emphasizes the significance of effectively managing claims to ensure the maintenance of affordable premiums.
Do You Need Workers’ Compensation Insurance in Colorado?
Employers in Colorado are obligated to have workers' compensation insurance if they have one or more employees. This requirement encompasses all types of employees, including part-time, full-time and family members. The law defines that individuals who receive compensation for their work are presumed to be employees.
Small business owners have two options for obtaining coverage. They can purchase it through a commercial insurance carrier or qualify for self-insurance programs.
Note that certain exemptions exist regarding the need for workers' compensation insurance. The most common exemption applies to independent contractors, but contractors must meet specific requirements to qualify.
While it may not be mandatory, having some form of business insurance protection is generally advisable. Unexpected incidents can lead to claims that have the potential to disrupt daily business operations and cash flow.
If your Colorado business is uninsured, you can face fines of up to $500 per day, and there is a possibility of your business being forced to shut down. In the event that one of your employees sustains an injury while you are uninsured, you will be responsible for covering the entire claim cost, along with an additional penalty amounting to 25% of the injured worker's benefits.
What Does Workers’ Compensation Insurance Cover in Colorado?
Workers’ compensation insurance in Colorado offers numerous advantages to employees who encounter work-related injuries or illnesses.
- Medical Care: Workers' compensation insurance includes the expenses of essential medical treatment and health care services associated with the injury or illness.
- Disability Benefits: In situations where an employee is incapable of working due to an injury, workers' compensation can offer disability benefits to offset the income lost during the recovery phase.
- Rehabilitation Services: Workers' comp insurance can extend its coverage to encompass the expenses of rehabilitation programs — such as physical therapy — aimed at aiding injured employees in their recovery and facilitating their return to work.
Note that the employer holds the role of the policyholder in workers' compensation insurance. It is their duty to secure the coverage and guarantee that employees receive the entitled benefits when the need arises.
Workers’ Comp Resources for Employees in Colorado
The Division of Workers' Compensation, a part of the Department of Labor and Employment, holds jurisdiction over workers' compensation matters within Colorado.
In the event of an employee sustaining a work-related injury or illness, the following steps should be taken to initiate a workers' compensation claim:
- Notify the insurance carrier regarding the injury within 10 days, regardless of the severity of the injury.
- Complete an Employer's First Report of Injury form (WC 1). It is important to note that filing this form does not imply an admission of facts; rather, it serves as a formal statement that the employee is making a claim.
- If an accident results in an employee fatality or three or more employees are injured, immediate contact must be made with the insurance company.
Frequently Asked Questions About Workers’ Compensation Insurance in Colorado
Selecting an ideal workers' compensation insurance provider holds great importance, and there are several key factors to consider when making this decision. Discover insights to frequently asked questions regarding the search for the best workers’ compensation insurance in Colorado below.
About Melissa Wylie
- Bureau of Labor Statistics. "IIF Latest Numbers." Accessed May 25, 2023.
- Colorado Department of Labor And Employment. "Employers." Accessed May 25, 2023.
- Colorado Department of Labor And Employment. "Workers' Compensation Insurance Requirements." Accessed May 25, 2023.
- Oregon Department of Consumer and Business Services. "Premium Index Rates." Accessed May 25, 2023.
- Pie Insurance. "About Pie Insurance." Accessed May 25, 2023.
- The Hartford. "Our History." Accessed May 25, 2023.