Insurance division OKs decrease for component of workers’ comp premiums

DENVER — The Colorado Division of Insurance on Monday said it has approved a reduction of 12.7 percent for the average “loss costs” component of workers’ compensation premiums for 2018.  

Loss costs are the average cost of lost wages and medical payments of workers injured while on the job.

But even with the statewide average loss costs decreasing, individual employers may see increases or decreases in their workers’ compensation premium, based on their particular classification code or industry group, the division pointed out in a prepared statement.

Factors that may increase workers’ compensation costs include frequency, duration of claim, number of treatments for each claim, severity of injury, increasing medical costs and overall costs to cover workers’ compensation claims.

The reduction is attributed to a decline in the number of workers’ comp claims filed by employers, going from 25 claims per million in 2001 to 17.8 claims per million in 2015.

The division explained in its press statement that the work of employers and their workers continues to be a force in reducing workers’ compensation costs.

“More and more employers with workers compensation insurance are providing appropriate and ongoing safety training,” according to the statement. “ Many also provide strong return-to-work programs, which bring employees back into the work environment sooner, and wellness programs, which can lead to healthier employees in general.”

on Facebook on LinkedIn