SB 22-035

Senate Bill 22-035 in Colorado updates the requirements for occupational accident insurance that transportation companies must provide to independent contractors. The new law specifies that this insurance must offer a minimum total coverage of $1.5 million for all benefits related to accidents. This change affects common carriers and contract carriers who use independent contractors, ensuring they receive comparable compensation as workers under traditional workers' compensation systems. Since the bill has been signed into law, these companies are now required to comply with this new standard for insurance coverage.

Official Summary

Under current law, common carriers and contract carriers may use independent contractors for transportation services. The contract must provide for coverage under either workers' compensation or an occupational accident insurance policy that provides "similar coverage" to that available under workers' compensation. "Similar coverage" must meet or exceed standards set by the division of insurance and is defined to require benefits that are at least comparable to the benefits offered under the workers' compensation system. The act changes the definition of "similar coverage" to an occupational accident insurance policy that provides a minimum aggregate policy limit of $1,500,000 for all benefits paid for the benefit of the operator. The act also defines "commercial vehicle" and "operator" for the purpose of occupational accident insurance required by independent contractors of carriers. (Note: This summary applies to this bill as enacted.)

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