A Colorado corporation is the employer, and its officers are covered by default. A corporate officer is treated as an employee who is included in coverage unless that officer holds one of the named offices, owns at least 10 percent of the stock, and files a written rejection; either way, if the corporation has any employees it must carry workers compensation.
Who this is for: Owners of a Colorado C-corp or S-corp, whether it is a small closely held company with only officers or a corporation with a full payroll.
The short version
- Any employee means a policy is required (C.R.S. 8-44-101), from your first worker.
- Officers are covered by default. A corporate officer is treated as a covered employee automatically.
- Only eligible officers can reject. To opt out, an officer must be the chair of the board, president, vice-president, secretary, or treasurer and own at least 10 percent of the stock (C.R.S. 8-41-202).
- A rejection does not drop your staff. Opting an officer out only removes that officer; the corporation must still cover every other employee.
- Non-owner employees are always covered from their first day once the corporation has any worker.
How officers are treated
Because the corporation is a separate legal person, it is the employer and its officers are its employees for comp. Colorado covers those officers by default, so an officer who does nothing is protected. To leave an officer off the policy, Colorado sets more than a title test. The person has to hold one of the listed offices, chair of the board, president, vice-president, secretary, or treasurer, has to own at least 10 percent of the corporation's stock, and also has to control, supervise, or manage the business affairs of the corporation. An officer who meets all three can file a written rejection, which stays in effect while the corporation's policy is in force. A minority officer who owns less than 10 percent, or a manager who is not one of the named officers, stays covered.
What applies to your corporation
| Your corporation | Is comp required? | Officer and employee notes |
|---|---|---|
| Solo owner-officer, no other staff | Usually no | With no employees no policy is required; if you carry one, the owner is covered unless they qualify and reject |
| Two owner-officers, no other staff | Usually no | No employees means no required policy; each may reject if a named officer owning at least 10 percent |
| Officers plus any non-owner employees | Yes | Employees covered from day one; officers covered by default, may reject if eligible |
| A 5 percent officer | Covered, cannot reject | Rejection needs a 10 percent or greater stake and a named office |
Deciding whether officers go on the policy
For an eligible owner-officer, staying on the policy means your own work injuries are paid by comp; filing a rejection keeps you off the premium but leaves you to rely on your own health and disability coverage for a work injury. Because coverage is the default, the choice to reject is a deliberate one, and it only makes sense for owners who both qualify and are comfortable carrying that risk themselves. Many small corporations keep hands-on owners covered, cover all rank-and-file employees, and only reject an officer who works entirely off the shop floor. An owner who works on a shop floor or a job site is exactly the kind of person who benefits from staying on the policy.
A Pueblo example
Illustrative, not a quote. A Pueblo manufacturer is an S-corp with a president who owns 70 percent and a vice-president who owns 30 percent, plus four production employees. With employees on the payroll, the corporation needs a policy, and all four workers are covered from day one. Both officers are covered by default; each holds a named office and owns more than 10 percent, so either could file a written rejection. The vice-president, who runs the floor, stays covered, while the president, who only handles sales from an office, rejects to save premium. See our workers comp for manufacturers page.
Real questions Colorado owners ask
Does my Colorado corporation need workers comp?
If it has any employees, yes, from your first worker. The officers themselves are covered by default, and non-owner employees must always be covered regardless of what the officers choose.
Are corporate officers covered by default in Colorado?
Yes. A corporate officer is a covered employee automatically. To opt out, the officer must hold a named office and own at least 10 percent of the stock, then file a written rejection.
Which officers can reject coverage in Colorado?
Only the chair of the board, president, vice-president, secretary, or treasurer, and only if that person also owns at least 10 percent of the stock and helps control, supervise, or manage the business affairs. Others stay covered.
Can a minority officer who owns 5 percent opt out?
No. Rejecting coverage requires both a named office and a 10 percent or greater ownership stake. An officer below that share stays covered as an employee and cannot file a rejection.
We are two owner-officers with no other staff. Do we need a policy?
Usually not by state law if there are no other employees. If you carry a policy, each owner is covered unless they hold a named office, own at least 10 percent, and file a rejection.
Do I still have to cover employees if the owner-officer rejects?
Yes. A rejection only removes that officer. Every non-owner employee must be covered from their first day once the corporation has a worker, no matter what the officers decide.
Should a working owner-officer stay on the policy?
Usually yes if they do hands-on work, since comp then pays their work injuries. An owner who only manages from a desk and qualifies to reject more often opts out and relies on their own coverage.
Why Colorado owners choose Morrow
- We shop the right market for you. In Colorado you buy workers' comp on the open market, where private insurers compete with the state-chartered fund, Pinnacol Assurance, which by law cannot turn away a Colorado employer, so we can shop your rate across carriers and still have Pinnacol as a guaranteed backstop for hard-to-place work.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Colorado guides
Every Colorado business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Colorado (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Hiring your first employee: what changes
- Workers comp vs employers liability
- Colorado manufacturer workers comp
This guide is general information, not legal advice. Colorado rules and penalty amounts can change, so verify current requirements with the Colorado Division of Workers' Compensation or a licensed advisor before you rely on them. Last updated: July 2026.