The Colorado Division of Insurance has announced that average workers’ compensation loss costs will decrease 1.9% next year. This means most businesses in Colorado will pay lower premiums for workers’ compensation insurance next year. Safety statistics have improved in the state, with lost wages and medical expenses from occupational injuries down for 2015.
The Colorado Department of Labor and Employment is responsible for annually determining the premium rates employers pay for workers’ comp insurance based on several factors, which include the aforementioned loss costs.
Lost cost averages are affected by frequent injury claims by workers, the length of absences from work, the severity of the injuries, the number of treatments needed, and any increases to the cost of health care, said Colorado Division of Insurance spokesman Vincent Plymell.
While some premiums are going down due to the drop in average loss costs, some might instead increase depending on the industry group and the loss experience of the business, warned Plymell.
Marguerite Salazar, Colorado Commissioner of Insurance, noted that the news is a “positive development” for the state.