Who Pays for Workers’ Compensation?

Reviewed by: Gordon Heuser, Personal Injury Attorney, Heuser & Heuser, L.L.P.

Your employer pays for workers’ compensation insurance. Not you. Under the Colorado Workers’ Compensation Act, most employers with one or more employees are required to carry workers’ compensation coverage. The employer pays the premiums to an insurance carrier, and if you’re injured on the job, that insurance covers your approved medical treatment and a portion of your lost wages while you recover. There should never be a deduction from your paycheck for workers’ comp, and you should never be asked to contribute to the cost of benefits or your claim.

For most on-the-job injuries, workers’ comp is the sole path to recovery against your employer. Colorado law channels nearly every workplace injury claim into this system rather than allowing a separate civil lawsuit against the employer. The one meaningful exception is when a non-employer, called a third party, shares fault for what happened. A delivery driver who crashes into you while you’re working, the maker of a defective tool, or a subcontractor on a job site can be pursued through a separate personal injury claim while your workers’ comp claim continues in parallel. Our firm handles both sides of that dual track when the facts support it. For a breakdown of what workers’ comp actually pays for in Colorado, see our blog on workers’ compensation benefits in Colorado.

A few narrow exceptions to mandatory coverage exist. Certain casual workers, independent contractors, and some agricultural workers may fall outside the coverage requirement, but most Colorado employees are covered. If you’re unsure whether your situation qualifies, the safest assumption is that it does, and an attorney can confirm.

If your employer doesn’t carry workers’ comp insurance and you’re injured on the job, you may be able to file a claim against the Colorado Uninsured Employer Fund, administered by the Colorado Division of Workers’ Compensation. The employer can also face serious penalties from the state. If you’ve been hurt at work in Colorado Springs or Pueblo and you’re not sure what you’re entitled to, or if your employer is telling you that you need to pay something toward a claim, call Heuser & Heuser, LLP for a free consultation: heuserlaw.com/practice-areas/workers-compensation/.