Colorado Workers Compensation Rates 2019
Colorado Workers Compensation Rates 2019 will be going down by an average of just more than 10 percent. This decrease will go in to effect the first of January and will the the fourth consecutive year businesses in the state of Colorado have enjoyed workers compensation insurance premium decreases.
The Colorado Division of Insurance previously approved a recommended decrease of 16.7% based on recommendations from the National Council on Compensation Insurance (NCCI), but Pinnacol (The Colorado State Provider) decided to change the rate at a more modest amount because of longer-term underlying loss and expense trends. Pinnacol is moving forward with a smaller decrease in order to minimize volatility in the market. Pinnacol would like to do this in order to create stability for business owners over a longer period of time.
In 2017 rates in Colorado were 19 % below the national average. After two additional years decreases, the state workers compensation system will rank even better in 2019. The state of Oregon does a study every two years entitled, the Oregon Workers Compensation Premium Rate Ranking. The findings of this study will come out in March of 2019. Colorado should fair well in these new rankings.
What Contributed to Declining Colorado Workers Compensation Rates 2019?
Colorado Workers Compensation Rates 2019 are declining due to a number of factors. First and foremost is the strength of the economy in the state and the strength of the state provider Pinnacol. Colorado has a unique public private partnership to deliver the assigned risk provider for high risk employers within the state. States that have a strong provider typically enjoy favorable rates on workers compensation premium. In addition to the strength of the economy and the strength of the state provider in Colorado, increased cost efficiency and favorable claims trends driven by safer workplaces are contributing to better rates for workers compensation insurance.
How are Workers Compensation Rates Determined?
The average cost of workers compensation insurance in most states across the country are dependent upon United States each classification code multiplied by 1 percent per $100 of the total payroll for each individual employee. Each employee is given a code based upon the duties they partake in. Employers who work on an oil rig 50 miles out in the ocean are given a certain code and office employees are given a different code. Depending upon the risks of the job and the historical claims of that industry each carrier charges more for industries with a high risk of claims.
How is Colorados’ Workers Compensation System Unique?
Colorado has a very unique system for administering workers compensation throughout the business community in the state. The division of insurance has developed a public private partnership to provide workers compensation coverage to businesses who cannot find coverage on the open market. This public private partnership is called Pinnacol. It was established more than 100 years ago and was formed to provide stability in the workers compensation market for businesses throughout Colorado. Pinnacol currently represents more than 56,000 customers.