As a Colorado sole proprietor you are not an employee of your own business by default, so the state does not require you to cover yourself, and you owe no policy at all until you hire your first worker. If you want your own on-the-job injuries covered, you can elect to be included on a policy by endorsement, whether or not you employ anyone else.
Who this is for: Colorado sole proprietors, from a solo operator with no staff to an owner who is starting to hire helpers, including construction owners with a special filing rule.
The short version
- You are not your own employee. Colorado treats a sole proprietor as the employer, not a covered worker, so you owe no coverage on yourself by default.
- Solo means no state mandate. With no employees there is no covered worker, so the state does not require a policy.
- The first hire is the line. Once you have even one employee, you must carry coverage for them (C.R.S. 8-44-101).
- You can elect yourself in. A sole proprietor may be added to a policy by endorsement, and may do so whether or not the business has other employees (C.R.S. 8-40-302).
- Construction has an extra step. A construction sole proprietor with no other employees must either carry comp on themselves or file a Rejection of Coverage with the Division.
You versus your employees
The key is that Colorado counts your workers, not you, when deciding whether a policy is mandatory.
| Situation | Coverage on the owner | Coverage on the workers |
|---|---|---|
| Just you, no employees | Not required; you may elect in by endorsement | None to cover |
| You plus one or more employees | Not required; you may elect in by endorsement | Required from day one |
| You elect yourself in | Covered under the policy | Covered from their first day |
| Construction, solo, no other employees | Carry comp on yourself or file a Rejection of Coverage | None to cover |
Why solo owners still buy coverage
Even with no legal duty, two things push sole proprietors to buy. First, if you are hurt on the job, your own health plan may refuse a work-related injury, and comp is built to pay medical bills and part of your lost income when that happens. Second, contracts often require it. A general contractor or a facility you want to work in will frequently ask for proof of coverage before letting you on site, and a policy that includes you can satisfy that. Adding yourself is a coverage choice, not a legal requirement, and we can price it both ways so you can see the difference.
The construction filing rule
Colorado adds one wrinkle for construction. A construction sole proprietor who has no other employees still has to make a choice on paper: either carry workers comp that covers themselves, or file a formal Rejection of Coverage with the Colorado Division of Workers' Compensation. General contractors and project owners often ask to see that you have done one or the other before you set foot on the job. Outside construction there is no such filing for a solo owner, but the same contract pressure to show proof of coverage still applies.
When you start hiring
The moment you bring on your first employee, Colorado requires a policy for them, and it attaches from that worker's first day. Part-time, seasonal, and family helpers count, so a single steady part-timer puts you over the line just as a full-timer would. Below any employees you are not required to carry, but you also have no comp to fall back on if you are hurt, which is one more reason owners often insure themselves early.
A Greeley example
Illustrative, not a quote. A Greeley landscaper runs solo for a year, then hires one seasonal crew member for the spring rush. That single seasonal worker makes coverage mandatory, and it starts on the worker's first day. The owner is not required to cover himself, but he elects in by endorsement so a fall from a truck bed would be paid by comp rather than out of pocket. Because he also does some construction work, he keeps proof that he either covers himself or has filed a rejection. See our workers comp for landscapers page.
Real questions Colorado owners ask
Do I need workers comp as a Colorado sole proprietor?
Not on yourself, and not at all until you hire a worker. Colorado treats a sole proprietor as the employer, not a covered worker, so you owe no coverage by default until you have an employee.
Can I cover myself as a sole proprietor in Colorado?
Yes. A sole proprietor can elect to be included on a policy by endorsement, and can do so whether or not the business has other employees. It is a coverage choice, not a requirement.
How many employees before a sole proprietor needs a policy?
One. Once you have even one employee, Colorado requires coverage for them. With no employees the state does not require a policy, though a client contract might.
What is the construction Rejection of Coverage in Colorado?
A construction sole proprietor with no other employees must either carry comp on themselves or file a formal Rejection of Coverage with the Colorado Division of Workers' Compensation. It is specific to construction.
Do part-time or seasonal helpers count toward the requirement?
Yes. A part-time, seasonal, or family worker counts the same as a full-timer, with no minimum hours and no waiting period, so even one steady helper makes coverage mandatory.
Will my health insurance cover a work injury instead?
Often not. Many health plans exclude work-related injuries, which is exactly what workers comp is built to pay. Electing yourself onto a policy fills that gap if you are hurt on the job.
A client wants proof of workers comp but I am solo. What now?
You can buy a policy and elect yourself in to produce proof of coverage. The state does not require it when you are solo, but the contract can, and we can price it for you.
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 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?
- 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?
- Do I need workers comp for 1099 contractors?
- Colorado landscaper 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.