Workers' Compensation Insurance Coverage Verification

New insurance checks for contractors and workers

Colorado government employers must verify workers’ compensation coverage or approved rejection before issuing or renewing covered contractor licenses and construction permits. Building and construction permits are covered only when total project costs exceed $1 million. Special districts and licenses or permits issued by the Division of Professions and Occupations are excluded. Applicants must file a signed declaration under penalty of perjury confirming coverage or rejection for themselves, general contractors, and every subcontractor at every tier. Accepted proof includes an insurance certificate, a self-insurance permit or certificate of authority, or an approved rejection form. The rejection form certifies that the applicant has no employees subject to workers’ compensation. Agencies must check the documents or verify coverage electronically. Before work starts, general contractors or permit holders must collect proof from everyone performing work under the permit. They must keep copies throughout the project and show them to licensing, permitting, or workers’ compensation officials when requested. Agencies may investigate complaints or investigate on their own. When they find a violation, they must suspend or revoke the contractor’s permit or license until proof is provided and applicable penalties are resolved. Agencies must notify the Division of Workers’ Compensation within 10 business days after suspension, revocation, or reinstatement. The division’s director can set rules for electronic checks, reporting, and agency coordination. The law covers conduct on or after its effective date, including decisions on applications pending that day.