The Colorado Division of Insurance approved a 2.4 percent reduction in the “loss costs” component of workers’ compensation premiums for next year, following a decline in the number and severity of workplace accidents.
The reduction represents an average, so some employers could face a bigger drop in premiums, while others could face a hike, all depending on the claims they and others in their industry filed this year.
“Employers in Colorado continue to do a good job of preventing workplace incidents in the first place, which helps everyone in keeping workers’ compensation costs down,” Marguerite Salazar, the state’s insurance commissioner, said in a statement Thursday.
Loss costs include the medical payments and lost wages provided to injured workers. They are influenced by the number of claims, the severity of injuries, recovery time and healthcare inflation.
Loss costs in Colorado have fallen for the past two years and were flat the year before.
