When an economic downturn strikes the nation, many Colorado businesses and workers will often require additional monetary support to curb negative impacts on their livelihoods.
One of the biggest misconceptions when it comes to protecting Colorado businesses and their workers is that a workers’ comp policy will provide workers with unemployment benefits.
Unfortunately, that’s not the case. Workers’ comp and unemployment insurance exist as two separate entities and means of protection.
Learn more about the major differences between the two insurances and what each covers.
Workers’ compensation helps to protect employers and employees in the event of a work-related accident. Coverage typically takes care of medical care costs, lost wages and helps to protect businesses from being sued.
Colorado requires all businesses with one or more employees to carry workers’ compensation coverage.
Workers’ compensation policies can be purchased in a few different ways, unlike unemployment insurance, which is a payroll tax.
Policies can be obtained through digital agents and online carriers (like Cake), through traditional insurance agents or even directly from an insurance carrier.
Workers' comp allows injured workers to receive the care they need to get healthy in the event of a workplace or work-related accident. Additionally, workers’ comp pays benefits to family members in the event of a work-related fatality.
Many Colorado business owners and workers might not realize unemployment benefits and insurance are one and the same.
Colorado unemployment insurance is a state-run program that provides “biweekly benefit payments to help job seekers focus on the path to reemployment and reduce the negative impact unemployment has on the economy.”
Funded by taxpayers, unemployment insurance is a tax taken out of payroll by employers on behalf of the state.
It’s important to remember that you can only be eligible for unemployment benefits if you have lost your job through no fault of your own. Some of these circumstances include:
To avoid fraud cases, the Colorado Department of Labor and Employment will contact your previous employer to determine if you qualify for benefits.
Circumstances that result in workers being ineligible for unemployment benefits include quitting your job and being discharged for performance-related reasons.
However, you may still be eligible for benefits depending on the circumstances that lead to you being discharged from your job. These situations often include being a victim of:
Life is chock full of surprises—some negatively impacting the lives of many across the state and country.
Keep up with Colorado state’s unemployment information to best support your workers and business in the event of an economic recession or depression.
It’s also crucial and a legal requirement, to cover your Colorado business with workers’ comp insurance.
Accidents happen. Ease your mind by knowing your hard work and hard-working employees are always covered with comp.
Receive workers’ comp quote from Cake Insure in 90 seconds and coverage in just five minutes online.