Many experts and brokers are reporting increases in the cost of workers’ compensation insurance for employers. This is mostly due to decreasing profit margins on the part of insurers. It is also due to the rising medical costs over the past few years. Part of this is a good thing because it means that employers are retaining more employees which ultimately leads to higher costs. However, for employers it likely means that the cost of premiums will rise. In order to increase profits insurance companies are adopting much tighter underwriting standards which will raise costs for brokers as well. There is also another factor greatly increasing the cost of insurance: claims. Because of adjustments in caps on workers’ compensation claims, it has become much more expensive for insurers to handle claims.
The increases are expected to be relatively modest for most employers. However, employers that have excess workers’ compensation or a high-risk of injuries, it could be significantly more. Many estimate the percentage increase for the average employer to be in the single digits. That said, employers in higher risk fields might see some double-digit increases. Areas in the Midwest are expected to see a higher level of increases over the next year.
It is unclear if and to what degree these rising costs will continue. Medical costs continue to rise annually, placing an added burden on insurance companies looking to strengthen their profit margins. That said, employers keeping more employees on the payroll tends to mean good things for the economy as a whole. If this trend continues, a stronger workforce and economy may offset rising costs.
If you or a loved one has been injured on the job in Colorado, contact our attorneys at 1-303-780-7329 or click HERE for a FREE consultation with a Denver or Greeley area workers’ compensation attorney. We can help you navigate the maze of workers’ compensation to get you and your family the benefits you deserve.