Self-Insurance

Employer Requirements to Qualify for Self-Insurance

All employers wishing to become self-insured must have an exemplary financial position and provide the following:

• Excess insurance coverage
• Security such as a surety bond
• Claims adjusting either internally or through use of a third-party administrator

If your company is interested in becoming individually self-insured, please contact the Division of Workers' Compensation at 303-318-8700 or toll-free at 1-888-390-7936.

Self-Insurance Annual Permit Renewal

Colorado allows employers, meeting strict financial and loss control standards, to self-insure their workers' compensation liabilities. Authorized by special permit issued by the Executive Director of the Department of Labor and Employment, such workers' compensation obligations are paid directly from the earnings and assets of the employer.

Colorado also allows group pooling by public sector employers and for trade or professional associations. This program is administered by the Division of Insurance in the Department of Regulatory Agencies. For all methods of financing the workers' compensation risk, the employer and employees are subject to the same laws and rules of procedure.

     Self-Insurance Annual Permit Renewal

     Self-Insurance Renewal Fee Payment

Additional Resources

• WC115 - Self-Insured Annual Review Form
• WC167 - Self-Insured PTD and Fatality Report
• WC120 - Self-Insurance Parental Guaranty Form
• Self-Insurance Rules of Procedure
• Self-Insured Permit Listing

Surcharge Collection

Surcharge is a levy on workers' compensation premiums paid by insurers who underwrite workers' compensation insurance coverage in Colorado and employers who are authorized to self-insure. Funds generated by the surcharge are used by the Division of Workers' Compensation to offset the costs of administering the system.

Surcharge is collected bi-annually from insurers, though self-insured employers are excluded from paying PCC surcharge since they are required to include cost containment (workplace safety) practices as part of their eligibility to self-insure. 

For more information on surcharge collection, please visit the Surcharge Collection page.

Self-Insurance Pools

If your business does not meet the requirements to be individually self-insured but is interested in joining or forming a self-insurance pool, please contact the Division of Insurance in the Department of Regulatory Agencies at 303-894-7499 or toll-free at 1-800-930-3745.