In Colorado, owner-operators are allowed to waive workers’ compensation insurance for themselves. On paper, it may sound like a smart way to save money but going without coverage is financially risky. The guide below explains the benefits of keeping this protection in place.

What Does Colorado State Law Say?

If an employee is injured while on the job or incurs a work-related occupational disease, their employer is required to pay for reasonable and necessary medical treatment, according to the Colorado Department of Labor & Employment.

Workers' compensation coverage also extends to wage loss while the injured employee recovers. If a fatality occurs, the employer must also provide death benefits to any surviving dependents. If they choose, however, owner-operators can make themselves exceptions to these rules, gambling on the idea they won’t get seriously hurt.

Why Owner-Operators Should Not Waive Coverage

If a work-related accident occurs—for example, a contractor smashes his hand on a job or an electrician falls down a flight of stairs on site—their personal health insurance provider may deny the claim. They can argue that workers' compensation should be in place to pay for any medical expenses or lost wages associated with the incident. Without the coverage, the owner-operator would be responsible for paying these expenses out of their own pocket, which can amount to a financial hit of many thousands of dollars.

If you’re an owner-operator, it’s not worth the risk to waive workers' compensation coverage for yourself. Jesse Wicks of ISU Insurance Services of Colorado in Golden, CO, specializes in helping independent contractors, business owners, and C-level business employees country-wide by providing comprehensive insurance policies. The licensed and experienced broker works with a wide range of industries and understands the urgency of protecting his clients from the unforeseen. Call him at (303) 916-5231 for a complimentary consultation. Or visit the website for more on his products and services.