Workers Comp Insurance for Barbershops in Colorado: Requirements and Average Costs

Colorado requires all employers to carry workers comp insurance from the first employee. Colorado barbershops with any employees on payroll must carry workers comp coverage. Workers comp in Colorado is regulated by the Colorado Department of Labor and Employment (CDLE), Division of Workers Compensation. Pinnacol Assurance is Colorado's state-sponsored workers comp carrier and insures a significant share of the Colorado market.

Quick Answer

Estimated workers comp premiums for Colorado barbershops:

Barbershop Type	Estimated Annual Workers Comp Premium
Solo barber (no employees)	Not required
Small barbershop (1 to 3 employees)	$900 to $2,200 per year
Mid-size barbershop (4 to 8 employees)	$2,000 to $5,100 per year

Colorado barbershop workers comp premiums are near the national average.

What Workers Comp Covers for Colorado Barbershops

Medical Benefits

Covers medical treatment, hospitalization, and rehabilitation costs for employees injured on the job.

Lost Wage Benefits

Covers a portion of wages for employees unable to work due to a work-related injury or illness.

Permanent Disability Benefits

Covers employees with permanent partial or total disability resulting from a work-related injury.

Death Benefits

Covers funeral expenses and survivor benefits if a work-related injury results in death.

Colorado-Specific Considerations

Colorado Mandate: First Employee

Colorado requires workers comp from the first employee under the Colorado Workers Compensation Act. Failure to carry required coverage subjects the employer to penalties from the CDLE.

Colorado Department of Labor and Employment

Workers comp in Colorado is regulated by the CDLE Division of Workers Compensation. Disputes are adjudicated by Division of Workers Compensation Administrative Law Judges.

Pinnacol Assurance

Pinnacol Assurance is Colorado's state-sponsored workers comp carrier. Colorado barbershops that cannot obtain private market coverage can obtain workers comp from Pinnacol. Pinnacol is the insurer of last resort and insures all eligible Colorado employers.

NCCI Class Code 9586

Colorado barbershops are classified under NCCI class code 9586 (Barber or Beauty Parlor). All non-exempt barber and staff payroll is rated under this code.

Booth Rental Barbers

Colorado barbers renting booth space as independent contractors are generally not covered under the shop owner's workers comp policy. Confirm worker classification status with your carrier.

Frequently Asked Questions

Does Colorado require workers comp for barbershops?

Yes. Colorado requires workers comp from the first employee.

What is the penalty for not carrying workers comp in Colorado?

The CDLE can penalize employers who fail to carry required workers comp coverage. Civil penalties and potential criminal charges apply.

What class code applies to Colorado barbershop workers comp?

Class code 9586 (Barber or Beauty Parlor) is the standard NCCI code for barbershop employees in Colorado.

Does workers comp cover booth rental barbers in Colorado?

Not automatically. Independent contractor booth renters are generally not covered under the shop owner's workers comp policy.

How much does workers comp cost for Colorado barbershops?

Small Colorado barbershops with 1 to 3 employees typically pay $900 to $2,200 per year, depending on payroll, claims history, and carrier.

Disclaimer

This article is for informational purposes only and does not constitute insurance or legal advice. Coverage details and costs vary by carrier and individual circumstances. Consult a licensed insurance agent for guidance specific to your situation.

Sources

• Colorado Department of Labor and Employment - Workers Compensation
• Pinnacol Assurance
• National Council on Compensation Insurance
• Insurance Information Institute