To get workers compensation in Colorado you buy a policy from any private insurer licensed in the state or from the state fund, Pinnacol Assurance, usually through an agent who shops several carriers for you. If private carriers turn you down, Pinnacol is the guaranteed backstop, because by law it cannot refuse to insure a Colorado employer.
Who this is for: Colorado owners buying workers comp for the first time, or those who have been declined and need another route.
The short version
- You buy on the open market. Private insurers and the state fund, Pinnacol Assurance, compete for your policy.
- An agent shops it for you. Because carriers price differently, comparing several quotes usually lowers your cost.
- Pinnacol is the guaranteed backstop. If no private carrier will take you, Pinnacol by law cannot refuse a Colorado employer, so you are never left without a market.
- Large employers can self-insure with a permit from the state, subject to financial tests and a security deposit.
- Owner-only businesses have an option for contract demands, sometimes a policy with no covered employees, called a ghost policy.
Ways to get covered
Most Colorado businesses use the open market. The other routes exist for hard-to-place risks and for large, financially strong employers.
| Route | Who it is for | How it works |
|---|---|---|
| Private carriers | Most businesses | An agent shops licensed insurers and binds the best fit |
| The state fund (Pinnacol Assurance) | Any employer, including those carriers decline | Competes on price and by law cannot refuse a Colorado employer |
| Self-insurance | Large, financially strong employers | A state permit with financial tests and a security deposit |
What you need to get a quote
Having a few things ready makes the quote faster and more accurate. Gather your payroll by role, a description of exactly what your workers do, your business structure and each owner's ownership share, and any past claims. If you are an LLC or corporation, the ownership share matters, because owners are covered by default but can reject if they own at least 10 percent. With that in hand, an agent can compare carriers and the state fund, place you in the right categories so you are not overcharged, and bind coverage, often the same day, then hand you proof of coverage, called a certificate of insurance, for your clients.
If you have been turned down
Being declined by a private carrier does not leave you stuck. Colorado's state fund, Pinnacol Assurance, is the insurer of last resort and by law cannot refuse to insure a Colorado employer or cancel a policy because your work is risky. So a business that private carriers will not voluntarily insure can still get a compliant policy through Pinnacol. It is still worth having an agent try the private market first, since a better-priced carrier may write your risk. If your business is owner-only and a client simply wants proof that a policy exists, a policy with no covered employees, sometimes called a ghost policy, can satisfy the contract without covering staff you do not have.
A Westminster example
Illustrative, not a quote. A Westminster plumbing company with two employees has one rough claim year and gets declined by the first carrier it tries. Its agent shops several more licensed carriers and, as a backstop, knows Pinnacol cannot turn the company away. The company hands over payroll and job descriptions, gets placed in the right categories, and binds coverage the same week, with a certificate ready for its general contractor clients. See our workers comp for plumbers page.
Real questions Colorado owners ask
How do I get workers comp in Colorado?
You buy a policy from any insurer licensed in Colorado or from the state fund, Pinnacol Assurance, usually through an agent who shops several carriers. The open market is where most businesses get covered.
What if carriers turn my Colorado business down?
Pinnacol Assurance, the state fund, is the guaranteed backstop. By law it cannot refuse to insure a Colorado employer, so you can always get a compliant policy even if private carriers decline you.
Does Colorado have a state workers comp fund?
Yes, a competitive one. Pinnacol Assurance competes with private insurers on price and also serves as the insurer of last resort, so it is both an option to shop and a guaranteed fallback.
What do I need to get a workers comp quote?
Your payroll by role, a clear description of the work, your business structure and each owner's ownership share, and any past claims. The ownership share decides which owners can reject coverage.
How fast can I get covered in Colorado?
Often the same day or the same week. Once an agent has your payroll and job details, they can compare carriers and the state fund, bind coverage, and hand you proof of coverage for your clients quickly.
Can I self-insure workers comp in Colorado?
Large, financially strong employers can, with a state permit that requires meeting financial tests and posting a security deposit. Most small businesses buy a policy instead, which is simpler and faster.
I am owner-only but a client wants proof of coverage. What can I do?
A policy with no covered employees, sometimes called a ghost policy, can satisfy a contract that just wants proof a policy exists, without covering employees you do not have.
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?
- I own a corporation (C-corp or S-corp): do I need it?
- 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?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- What is a ghost workers comp policy?
- Glossary: workers comp class code
- Colorado plumber 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.