Workers Comp Rates in Colorado (CO)
The average workers' compensation rate in Colorado is $0.92 per $100 of payroll , effective as of 2025-01-01. This is $0.27 (22.7%) below the national average of $1.19 per $100. Colorado has a competitive insurance market where employers can purchase workers' comp from private insurers. Colorado requires workers' compensation for all employers with one or more employees. The state has competitive rates below the national average thanks to strong safety regulations.
Workers Comp Requirements in Colorado
Workers Comp Rates by City in Colorado
The table below shows average workers' compensation rates for 5 cities in Colorado, sorted by rate from highest to lowest. Rates range from $0.85/$100 in Boulder to $0.95/$100 in Colorado Springs. Actual rates depend on your industry class code and claims history.
| City | Rate/$100 | Est. Cost ($250K) | vs. State Avg | vs. National Avg | Notes |
|---|---|---|---|---|---|
| Colorado Springs | $0.95 | $2,375 | +$0.03 | -$0.24 | -- |
| Aurora | $0.93 | $2,325 | +$0.01 | -$0.26 | -- |
| Denver | $0.90 | $2,250 | -$0.02 | -$0.29 | State capital |
| Fort Collins | $0.88 | $2,200 | -$0.04 | -$0.31 | -- |
| Boulder | $0.85 | $2,125 | -$0.07 | -$0.34 | Tech/education economy |
How Colorado Compares to Other States
Below is a comparison of Colorado with five states that have similar workers' compensation rates. This comparison helps illustrate where Colorado stands nationally in terms of workers' comp costs and requirements.
| State | Rate/$100 | Type | Min Employees | Waiting Period | Est. Cost ($250K) |
|---|---|---|---|---|---|
| Colorado (CO) | $0.92 | Competitive | 1+ | 3 days | $2,300 |
| Texas (TX) | $0.90 | Competitive | 1+ | 7 days | $2,250 |
| Idaho (ID) | $0.95 | Competitive | 1+ | 5 days | $2,375 |
| South Dakota (SD) | $0.95 | Competitive | 1+ | 7 days | $2,375 |
| Kentucky (KY) | $0.98 | Competitive | 1+ | 7 days | $2,450 |
| Tennessee (TN) | $0.98 | Competitive | 5+ | 7 days | $2,450 |
Workers Comp Cost Examples for Colorado
The following table shows estimated annual workers' compensation costs for various payroll sizes in Colorado using the state average rate of $0.92 per $100 of payroll. Actual costs depend on your industry class code and experience modifier.
| Annual Payroll | Est. Annual Premium | Est. Monthly Cost |
|---|---|---|
| $50,000 | $460 | $38 |
| $100,000 | $920 | $77 |
| $250,000 | $2,300 | $192 |
| $500,000 | $4,600 | $383 |
| $1,000,000 | $9,200 | $767 |
| $2,500,000 | $23,000 | $1,917 |
Frequently Asked Questions About Workers Comp in Colorado
How much does workers comp cost in Colorado?
The average workers' compensation rate in Colorado is $0.92 per $100 of payroll. For an employer with $250,000 in annual payroll, that works out to approximately $2,300 per year. However, actual rates vary significantly by industry. Office workers may pay as little as $0.20/$100 while high-risk industries like construction or logging can exceed $10/$100.
Is workers comp required in Colorado?
Yes. Colorado requires workers' compensation for employers with 1 or more employees. The following are exempt: Certain agricultural workers, independent contractors, domestic workers (fewer than 40 hrs/week). Penalties for noncompliance include: Up to $500/day fine, misdemeanor criminal charges.
Where can I buy workers comp in Colorado?
Colorado has a competitive workers' compensation market. You can purchase coverage from any licensed private insurance company, through an insurance agent or broker, or in some cases through a state-sponsored program. Shopping multiple carriers is recommended to find the best rate for your industry and claims history.
What is the waiting period for workers comp in Colorado?
The waiting period in Colorado is 3 days. This means an injured worker must wait 3 days before receiving wage replacement benefits. Medical benefits typically begin immediately. If the disability extends beyond a certain number of days (usually 14-21 depending on the state), the waiting period benefits are paid retroactively. The maximum weekly benefit in Colorado is $1,178.
Estimate Your Workers Comp Cost
Use our workers comp cost calculator to estimate your premium based on your specific payroll in Colorado, or browse all 50 states to compare workers' comp rates across the country. Remember that actual rates depend on your industry classification, claims history, and experience modification rate.