Pinnacol Assurance
Pinnacol Assurance is the competitive state workers compensation fund in Colorado, operating alongside private carriers. State funds typically serve as the carrier of last resort and also write voluntary policies for any qualifying employer. Verified 2026-05-09.
About Pinnacol Assurance
Pinnacol Assurance is the competitive state workers compensation fund in Colorado, operating alongside private carriers. State funds typically serve as the carrier of last resort and also write voluntary policies for any qualifying employer.
State funds were originally created to ensure every employer can find workers comp coverage, even employers private carriers refuse to write. Colorado preserved a competitive market, so the state fund competes with private carriers on price and service. Some employers prefer the state fund for stable rates and consistent claims handling; others prefer private carriers for industry specialization or pay-as-you-go billing.
Pricing on a state fund policy in Colorado
State funds use the same NCCI class code rate filings as private carriers; the rate per $100 of payroll is the same. Differences come in at the schedule rating stage (where the underwriter applies discretionary credits or debits, capped at 25% in Colorado) and the dividend programs (some state funds return a portion of premium to policyholders in good loss years).
Claims handling
Statutory benefits are set by Colorado law and apply equally to state fund and private carrier policies. The state fund typically maintains its own in-house claims operation, while private carriers may use third-party administrators (TPAs). Some employers prefer the state fund for the consistency of a single in-state claims team; others prefer private carrier TPAs for specialization in their industry.
Related reading
FAQs
What is Pinnacol Assurance?
Pinnacol Assurance is the competitive state workers compensation fund in Colorado, operating alongside private carriers. State funds typically serve as the carrier of last resort and also write voluntary policies for any qualifying employer.
Is Colorado a monopolistic state for workers comp?
No. Colorado is a competitive market where private carriers and Pinnacol Assurance both write workers comp. The state fund typically serves as a carrier of last resort plus a voluntary writer for any qualifying employer.
Who is eligible to buy from Pinnacol Assurance?
Pinnacol Assurance typically writes any Colorado employer the private market declines, plus voluntary submissions from employers who prefer the state fund for cost or service reasons. Some state funds have specialty programs for high-risk industries.
Who has to carry workers comp in Colorado?
All businesses with employees, regardless of number of employees, part-time status, or family relation.
What is the penalty for skipping coverage in Colorado?
Failure to carry workers' compensation insurance can result in fines, stop-work orders, and personal liability for employee injuries.
What is the max weekly benefit on a Pinnacol Assurance policy?
Statutory benefits are set by Colorado law and apply equally on private and state-fund policies. The max weekly indemnity benefit is $1,397 (effective 2025-07-01), calculated as 66.67% of the average weekly wage.