DENVER - Colorado employers will see an increase in the premiums they pay for workers' compensation insurance next year as the number of claims filed grew in 2012, according to the state Division of Insurance.
The "loss costs" component of workers' compensation premiums is forecast to rise by 5.2 percent in 2013. It will be the third straight year the component has increased.
Loss costs are the average cost of lost wages and medical payments of workers injured during the course of their employment. Factors that may increase workers' comp costs include frequency and length of claims, number of treatments for each claim and severity of injury.
"The trends of the last few years continued: increasing claim costs and increasing frequency of claims," said Pat Knepler, the Insurance Division's lead staff member on the issue. "However, Colorado employers and employees continue to improve safety and reduce losses. Without these efforts, it is likely the increase would be higher."
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