State insurance guide
Colorado Business Insurance Guide 2026
Colorado employers with one or more employees working in the state must carry workers' compensation insurance at all times, whether those employees are part-time, full-time or family members. Auto liability minimums and paid leave rules follow, each with its official source.
Explore Colorado requirements
Open the state requirements checklistColorado employers with one or more employees working in the state must carry workers' compensation insurance at all times, whether those employees are part-time, full-time or family members (Colorado Division of Workers' Compensation: Workers' Compensation Insurance Requirements). Auto liability coverage must be at least $25,000 per person and $50,000 per accident for bodily injury and $15,000 for property damage (Colorado Division of Insurance, Auto Insurance). Colorado's FAMLI paid leave program charges a 2026 premium of 0.88% of wages (FAMLI premium calculator).
Official sources checked October 3, 2026. This guide is general information, so confirm your own case with the responsible agency.
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Workers' compensation
Who must carry it: 1 or more employees (Colorado Division of Workers' Compensation: Workers' Compensation Insurance Requirements).
If you have one or more employees working for you in Colorado, you must have workers' compensation insurance and maintain it at all times.
Source: Colorado Division of Workers' Compensation: Workers' Compensation Insurance Requirements
Construction businesses face extra rules: owners must insure themselves or file a rejection of coverage, and general contractors must insure or verify the coverage of their contractors (Colorado Division of Workers' Compensation: Workers' Compensation Insurance Requirements).
Exemptions and exclusions
The division lists its most common exemptions and notes there are others: domestic workers under 40 hours and under five days a week; commission-only real estate brokers or agents under contract; some motor carriers leasing vehicles; casual farm, ranch or maintenance labor paid no more than $2,000 a year; ski volunteers; and corporate officers and LLC members owning 10% or more who choose to reject coverage (Colorado DWC: independent contractors and coverage exemptions).
Colorado is not a state-fund-only market: the division says Pinnacol Assurance must offer coverage to any Colorado employer and that more than 500 licensed insurers write it (Colorado Division of Workers' Compensation: Workers' Compensation Insurance Requirements).
The agency to ask is the Colorado Department of Labor and Employment, Division of Workers' Compensation. For the coverage itself, see the workers' compensation guide; for a proposal's arithmetic, the workers' comp calculator.
Auto liability minimums
Colorado's minimum auto liability limits:
- Bodily injury liability: $25,000 per person and $50,000 per accident
- Property damage liability: $15,000 per accident
- Start date: not stated in the source; confirmed in force on October 3, 2026
- Source: Colorado Division of Insurance, Auto Insurance
Colorado law requires you to have liability coverage on your automobile.
The Division of Insurance treats uninsured/underinsured motorist coverage and $5,000 of medical payments coverage as optional: both are included unless you reject them in writing (Colorado Division of Insurance, Auto Insurance).
Vehicles used commercially or for hire can face different or higher federal or state requirements; the commercial auto guide explains what to compare.
Paid leave and disability insurance
Colorado runs a state paid family and medical leave insurance program (FAMLI). The 2026 premium is 0.88% of wages up to the Social Security wage cap, split 0.44% employer and 0.44% employee (FAMLI premium calculator); employers with nine or fewer employees remit only the 0.44% employee share (FAMLI for employers).
The premiums in 2026 are set to 0.88% of the employee’s wage, with 0.44% paid by the employer and 0.44% paid by the employee.
Source: Colorado FAMLI Division, Premium and Benefits Calculator
What employers do: Register with the FAMLI Division, file quarterly wage reports and remit premiums for every Colorado employee (employers with 10 or more employees remit the full 0.88%; employers with nine or fewer remit the 0.44% employee share), unless the Division has approved a private plan (FAMLI for employers).
Other requirements to check
Your trade license, lease or client contracts in Colorado can set their own conditions, for example general liability limits or certificate wording. Keep track with the certificate of insurance checklist, and see the requirements-by-state guide if you work across state lines. Colorado has additional workers' compensation requirements for construction businesses, so contractors should check them alongside their license conditions.
Where to verify
- Workers' compensation: Colorado Department of Labor and Employment, Division of Workers' Compensation
- Auto liability minimums: Colorado Division of Insurance, Auto Insurance
- Paid leave and disability insurance: Colorado Department of Labor and Employment, FAMLI Division
Before you call, the state requirements checklist lists the questions to ask. For a PolicyBenchmark follow-up about your Colorado business, request coverage help.
Frequently asked questions
Does a Colorado business with one employee need workers' compensation?
Generally, yes: Colorado applies the requirement from the first employee (Colorado Division of Workers' Compensation: Workers' Compensation Insurance Requirements). Exemptions listed above can still apply to particular workers or owners; the agency to ask is the Colorado Department of Labor and Employment, Division of Workers' Compensation.
Are Colorado's auto minimums enough for business vehicles?
Colorado's minimums are $25,000 per person and $50,000 per accident for bodily injury and $15,000 for property damage (Colorado Division of Insurance, Auto Insurance). That is the legal floor, not a measure of what a business needs, and commercial and for-hire vehicles can face different or higher federal or state requirements.
Do Colorado employers pay into a paid leave or disability program?
Yes. Employers must register with the FAMLI Division, file quarterly wage reports and remit premiums for every Colorado employee (employers with 10 or more employees remit the full 0.88%; employers with nine or fewer remit the 0.44% employee share), unless the Division has approved a private plan (FAMLI for employers).
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This content is for informational purposes only and does not constitute insurance advice. Always consult with a licensed insurance professional before making coverage decisions.