In a Colorado partnership the working partners are not employees by default, so you are not required to cover the partners themselves, but once the business has even one employee it must carry workers compensation for that worker. A working general partner who wants their own injuries covered can elect to be included on the policy by endorsement, whether or not the partnership has other employees.
Who this is for: Colorado general partnerships and their partners, from a two-person shop with no staff to a partnership running a payroll, including construction partners with a special filing rule.
The short version
- Partners are not employees by default. Colorado treats a working general partner like a sole proprietor, so you owe no coverage on the partners themselves.
- The first employee is the trigger. A policy becomes mandatory once the partnership has one employee (C.R.S. 8-44-101).
- Partners can elect in. A working general partner may be added to the policy by endorsement, whether or not the business has other employees (C.R.S. 8-40-302).
- Construction has an extra step. A construction partner with no other employees must either carry comp or file a Rejection of Coverage with the Division.
- Employees always get covered from their first day once the partnership has any worker.
Partners versus employees
| Situation | Coverage on the partners | Coverage on employees |
|---|---|---|
| Two partners, no employees | Not required; partners may elect in by endorsement | None to cover |
| Partners plus one or more employees | Not required; partners may elect in by endorsement | Required from day one |
| A partner elects in | Covered under the policy | Covered from their first day |
| Construction partners, no other employees | Carry comp or file a Rejection of Coverage | None to cover |
Why partners often elect in
Partners who do real work in the business carry the same injury risk as any employee, but their own health plan may refuse a work-related injury. Electing a partner onto the policy means comp pays that partner's medical bills and part of their lost income after an on-the-job injury. It matters most for hands-on trades and firms with client contracts that ask for proof of coverage. Because partners are out by default, adding them is a deliberate coverage choice made through an endorsement, and we can quote the partnership with and without the partners included so you can compare.
What changes as you hire
The partnership crosses into a required policy the moment it has one employee, and coverage attaches from that worker's first day. Part-time, seasonal, and family staff count. If the partnership does construction work and has no other employees, each partner still has to either carry comp on themselves or file a Rejection of Coverage with the Colorado Division of Workers' Compensation, which general contractors often ask to see. Below any employees the partnership is not required to carry, but it also has no comp to fall back on if a partner is hurt, so many partnerships insure earlier than the strict rule demands.
A Loveland example
Illustrative, not a quote. Two partners run an accounting practice in Loveland and hire one seasonal preparer for tax season. That single seasonal employee makes a policy mandatory during the season, effective from the preparer's first day. The partners are not required to cover themselves, but one who visits client sites elects in by endorsement so a slip on a client stairwell would be covered. When a corporate client asks for proof of coverage, the firm has a certificate ready. See our workers comp for accounting firms page.
Real questions Colorado owners ask
Does a Colorado partnership need workers comp?
For the partners, no, they are not employees by default. For employees, yes, once the partnership has even one worker. With no employees the state does not require a policy.
Are partners covered automatically in Colorado?
No. Colorado treats working general partners like sole proprietors, so they are out by default. A working partner can elect to be added to the policy by endorsement if they want their own injuries covered.
How many employees before our partnership needs a policy?
One. A policy becomes mandatory once the partnership has one employee under C.R.S. 8-44-101. Part-time, seasonal, and family workers all count toward that first employee.
Can a partner get covered under the policy?
Yes. A working general partner can elect in by endorsement to include their own injuries, and can do so whether or not the partnership has other employees. It is a coverage choice, not a requirement.
Do construction partners have an extra requirement?
Yes. A construction partner with no other employees must either carry comp on themselves or file a Rejection of Coverage with the Colorado Division of Workers' Compensation before working.
Do we count the partners toward the coverage requirement?
The partners themselves do not create the duty, since they are not employees by default. The requirement is triggered by your actual employees, even a single worker.
What if a partner is hurt and never elected in?
There is no comp coverage on that partner, so they absorb their own medical bills and lost income. Electing in by endorsement ahead of time is what avoids that, especially in the trades.
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 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)
- Do sole proprietors need workers comp?
- Hiring your first employee: what changes
- Colorado accounting firm 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.