Why workers' comp?

Injuries are no fun. But neither is being liable or without a paycheck as a result of a work injury.


Workers' comp is protection for employees and employers.

What is it?

Workers’ compensation insurance protects employers and employees in the event of an accident. It covers medical care and certain lost wages—and safeguards employers from being sued.

Who needs it?

Most states, including Colorado, require that all businesses carry workers’ compensation coverage as soon as they hire their first employee. Cake is currently available for those businesses that operate in the state of Colorado.

Why is it important?

Workers' comp ensures employees receive the care and treatment they need to get healthy. A business owner can't protect against everything that could happen, so workers' comp is there in the event of a workplace injury. And in the event of an unfortunate work-related death, workers’ compensation pays benefits to the family.

The name says it all: “workers’ comp” provides compensation for workplace injuries, while health insurance and disability apply to non-work injuries. Most health insurance companies will actually not cover injuries and illnesses that are covered by workers’ comp.

What’s covered?

  • Medical costs related to an on-the-job injury or illness

  • A portion of lost wages

  • Retraining costs when an injured employee returns to work

  • Related legal fees

What’s not?

  • Medical costs for certain non-traditional employees, including interns or volunteers

  • On-the-job injuries due to alcohol or illegal drugs