Operating a business in a high-risk industry in Denver brings strong opportunities—and serious responsibilities. Construction, roofing, manufacturing, How to Get Workers’ Compensation Insurance for High-Risk Industries trucking, oil and gas, and similar industries are vital to Colorado’s economy, but they also come with higher chances of workplace injuries.

Because of this elevated risk, securing workers’ compensation insurance can feel overwhelming for Denver employers. Higher premiums, strict underwriting, and frequent audits often discourage business owners. The reality, however, is that workers’ compensation insurance for high-risk industries in Denver is not only possible—it’s essential.

This guide explains exactly how Denver-based high-risk businesses can obtain workers’ compensation insurance, comply with Colorado law, manage costs, and protect both employees and long-term operations.

What Is Workers’ Compensation Insurance?

Workers’ compensation insurance provides medical coverage and wage replacement benefits to employees who suffer work-related injuries or illnesses. In return, employees generally waive their right to sue their employer for those injuries.

For Denver employers, workers’ compensation insurance:

• Covers medical bills and rehabilitation costs
• Replaces a portion of lost wages
• Protects businesses from lawsuits
• Ensures compliance with Colorado labor laws
• Builds trust and security among employees

In Colorado, most businesses with one or more employees are legally required to carry workers’ compensation insurance.

What Are Considered High-Risk Industries in Denver?

High-risk industries are classified based on the likelihood and severity of workplace injuries. In Denver, insurance carriers rely on historical claim data and industry classifications to determine risk.

Common high-risk industries in Denver include:

• Construction and general contracting
• Roofing and exterior services
• Manufacturing and fabrication
• Trucking and transportation
• Oil, gas, and energy services
• Warehousing and logistics
• Landscaping, tree service, and snow removal

These industries experience more frequent claims, which leads to higher insurance costs and stricter underwriting standards.

Why Workers’ Compensation Insurance Costs More for High-Risk Industries

Workers’ compensation premiums are higher for high-risk industries due to increased exposure to injury claims. Several factors influence the final cost in Denver:

Industry Classification Codes

Every job role is assigned a classification code under Colorado workers’ compensation rules. Higher-risk codes carry higher rates.

Payroll Size

Premiums are calculated per $100 of payroll. Larger teams or higher wages increase costs.

Claims History

Businesses with previous injuries or frequent claims are seen as higher risk.

Experience Modification Rate (EMR)

Your EMR compares your claims history to industry averages. A higher EMR results in higher premiums.

Workplace Safety Practices

Companies without documented safety programs often pay more.

Colorado Workers’ Compensation Requirements for Denver Employers

Colorado law requires nearly all employers to carry workers’ compensation insurance, even if they have only one employee. Key requirements include:

• Coverage must be active before employees begin work
• Independent contractors may still require coverage if misclassified
• Penalties apply for operating without insurance

Failure to comply can result in fines, stop-work orders, and personal liability for injury costs.

Step-by-Step: How to Get Workers’ Compensation Insurance for High-Risk Industries in Denver

1. Understand Your Business Risk Profile

Before applying, review your operations carefully. Identify high-risk job duties, equipment usage, and employee exposure levels. Clear documentation improves approval chances.

2. Prepare Required Business Information

Denver insurers will request detailed data, including:

• Business structure and years in operation
• Job descriptions and employee roles
• Estimated annual payroll
• Safety procedures and training programs
• Prior workers’ compensation claims

Providing accurate information avoids delays and costly reclassification audits.

3. Work With a Colorado-Based Insurance Broker

High-risk businesses benefit from brokers who understand Colorado’s workers’ compensation market. A specialized broker can:

• Access carriers that insure high-risk industries
• Navigate Colorado compliance rules
• Compare pricing and coverage options
• Assist with audits and renewals

This expertise often results in better coverage and manageable premiums.

4. Apply Through High-Risk or Specialty Insurance Carriers

Many standard insurance companies decline high-risk industries. However, Denver employers can still obtain coverage through:

• Specialty workers’ compensation insurers
• Excess and surplus lines carriers
• Colorado assigned risk plans

Assigned risk plans ensure coverage availability when private insurers refuse, though premiums may be higher.

5. Implement Strong Workplace Safety Programs

Insurers strongly favor businesses that prioritize safety. Effective programs include:

• Regular safety training sessions
• Proper protective equipment
• Job hazard assessments
• Written safety policies
• Incident reporting procedures

Strong safety programs reduce claims and improve future insurance rates.

6. Lower Your Experience Modification Rate (EMR)

Reducing your EMR is one of the most effective ways to lower workers’ compensation costs in Denver. Strategies include:

• Preventing workplace injuries
• Managing claims promptly
• Offering return-to-work programs
• Reviewing claims for errors

A lower EMR improves insurability and long-term savings.

7. Maintain Accurate Payroll and Classifications

Misclassified employees or incorrect payroll estimates often lead to audits and premium increases. Review classifications annually to ensure compliance with Colorado standards.

Tips to Reduce Workers’ Compensation Costs in Denver

High-risk businesses can still control insurance expenses by taking proactive steps:

• Invest in employee safety training
• Conduct regular equipment inspections
• Use light-duty return-to-work options
• Maintain clean injury records
• Work closely with your insurance broker

Over time, these practices improve your risk profile and lower premiums.

Common Mistakes Denver Employers Should Avoid

• Operating without proper coverage
• Misclassifying employees as contractors
• Ignoring safety documentation
• Choosing policies based only on price
• Missing renewal or audit deadlines

Avoiding these mistakes protects your business and prevents penalties.

Benefits of Workers’ Compensation Insurance for High-Risk Industries in Denver

Despite higher costs, workers’ compensation insurance offers critical benefits:

• Financial protection from injury claims
• Legal compliance with Colorado laws
• Improved employee confidence and morale
• Reduced risk of lawsuits
• Long-term business stability

For high-risk industries, coverage is a necessity—not an option.