In Colorado, whether a business owner or corporate officer is covered by workers' compensation — and whether they can change that — depends on the entity type and Colorado's own rules. Getting the election right affects both your protection and your premium. Here is how inclusion and exclusion work in Colorado, the form or filing to use, and what it means for your policy.
Who must carry workers' compensation in Colorado?
Mandatory for virtually every employer with one or more employees. All construction-site workers must be covered or file a rejection.
Can owners and officers be included or excluded in Colorado?
| Sole proprietor | Excluded by default; may elect in. Construction must carry or file a rejection. |
|---|---|
| Partners | Same; construction partners must carry or file a rejection. |
| LLC members | Included by default; may elect out via Form WC43 if owning 10%+ and helping manage. |
| Corporate officers | Included by default; may elect out via Form WC43 if owning 10%+ stock and helping manage. |
How to make the election in Colorado
How Colorado counts an included owner
Colorado rates an included owner/officer on a flat $79,800 per year (effective 1/1/2026) — not a minimum/maximum band. (effective 1/1/2026). Source.
Colorado's assigned-risk / residual market
An employer that can't secure workers' comp in the standard market can still get covered through Pinnacol Assurance (insurer of last resort, statutorily required to write any Colorado employer). We market your risk to voluntary carriers first and turn to the residual market only as a last resort.
Related
Colorado business insurance · Workers' compensation coverage · Colorado Division of Workers' Compensation.
Frequently Asked Questions
Do business owners have to carry workers' comp on themselves in Colorado?
It depends on your entity and role. Excluded by default; may elect in. Construction must carry or file a rejection. Included by default; may elect out via Form WC43 if owning 10%+ stock and helping manage. Employees are always covered.
How do I include or exclude an owner from workers' comp in Colorado?
The right form, portal, or endorsement depends on your entity type. Colorado records the election on the policy with the carrier; our general inclusion/exclusion form documents it.
What payroll is used for an included owner in Colorado?
Premium is figured between a state-set minimum and maximum that changes each year; we confirm the current amount for your policy.
Can Cory Washington & Co. handle my Colorado workers' comp election?
Yes. We confirm which rule applies to your entity, prepare the correct form or election, coordinate it with your carrier, and keep your workers' comp aligned with the rest of your program. Request a quote or a policy review and we'll take it from there.
This page is general educational information from Cory Washington & Co. LLC about how workers' compensation owner inclusion and exclusion works in this state. It is not legal, tax, or insurance advice and is not a determination of your eligibility or obligation. Workers' compensation laws, forms, payroll limits, and residual-market programs change and depend on your entity type, ownership, and operations. Confirm the current rules and amounts with your licensed advisor at Cory Washington & Co. LLC and the state agency before making any election.