Colorado employers may be happy to hear that the cost of workers’ compensation insurance is on the decline. This is a direct effect of employers and employees implementing workplace procedures that prevent workplace injuries. The exact calculation of this good news comes from a decline in loss costs associated with workers’ compensation. However, workplace trends indicate a potential increase in insurance premiums for employers in the future.
According to Conning, an insurance market research firm, there are 3 workers’ compensation insurance trends that could begin to drive up costs. The research states that:
- Accidents are occurring more frequently amid certain high-risk occupations. Certain data points show increases in work-related injuries among workers in transportation and construction.
- The severity of accidents in Colorado is increasing. 2013 saw a sharp decline in work-related fatalities. However, recent years are showing increases in workplace deaths.
- Cost shifting raises costs for insurers. This practice essentially utilizes workers’ compensation insurance to pay for losses from other health cases—not good news for employers hoping to save on premiums.
Prevention is Key in Cutting the Cost of Workers’ Compensation Insurance
With the loss cost standard in Colorado, employers have a monetary incentive for preventing workplace injuries. If the state’s businesses can reduce the loss costs associated with workers’ compensation insurance, then premiums will decrease.
Employers should put prevention at the forefront of their workplace safety training protocols. A well-trained staff is less likely to make mistakes that result in injury. Therefore, reducing the need for workers’ compensation in the first place.
Prevention doesn’t end there, however. A good employer should take prevention measures into account even when hiring someone. By hiring only qualified candidates, employers can keep their employees safe and avoid workers’ compensation issues.
These prevention measures may cost in the short term but will pay off in the long run.
As an employee you should always avoid situations that put you at risk. A work-related injury not only hurts you but also the business for which you work. Likewise, employers have a responsibility to workers who fall victim to workplace hazards.
If you have sustained an injury at work and are unsure of what to do next, check out this article: “How to File a Work Injury Claim.”