On behalf of The Frickey Law Firm on Tuesday, September 11, 2012.
According to the Colorado Division of Insurance, businesses will likely be spending more money on insurance in the coming year as the economy recovers. This is because a better performing economy equates to a need for more employees – more employees means an increased likelihood of workplace injuries. This increased likelihood translates to higher costs for workers’ compensation insurance.
According to a spokesperson with the Division of Insurance, the average workers’ compensation insurance rate increased by 3.7 percent in 2012. Reportedly, this is due to an increased number of claims and higher medical costs. The official also said that insurance rates had been flat for most of the last decade because many organizations in Colorado were focusing on containing costs and increasing workplace safety to avoid the expenses associated with workers’ compensation claims.
Some industries saw higher-than-average insurance rate increases. Those included the industries of construction as well as goods and services, which had 4.5 and 4.8 percent increases respectively. Other industries saw lower-than-average increases including office and clerical companies as well as manufacturers – these two industries saw 1.2 and 1.9 percent increases.
The state director for the National Federation of Independent Business said that increased workers’ compensation insurance rates cause economic stress for businesses, no matter the industry that they are in. The key to reducing rates (and costs) for such businesses, however, is to increase worker safety.
Workers’ compensation insurance is a necessary part of any business that has employees. If a worker is injured on the job, a claim brought by an injured worker and his or her attorney can force an employer to pay for the injury and any associated medical costs. Many workers have become the victims of workplace accidents.
In order to minimize the number of injuries, employers should be sure to focus on safety precautions and awareness.
Source: Northern Colorado Business Report, “As economy recovers, worries turn to workers’ comp rates,” Beth Potter, Sept. 4, 2012