The Colorado Division of Insurance has approved a decrease of 6.9% in loss cost for 2026, a 56.8% Cumulative Reduction over 12 years.
DENVER - The Colorado Division of Insurance (DOI), part of the Department of Regulatory Agencies (DORA), has approved a reduction of 6.9% (-6.9%) for the average “loss costs” component of workers’ compensation insurance premiums for 2026. This reduction means lower premiums for many Colorado businesses and stems from fewer on-the-job injuries and accidents.
Loss costs are the average cost of lost wages and medical payments of workers injured per $100 of payroll or as a percentage of payroll. Since 2015, there has been a 56.8% cumulative average decrease in loss costs in Colorado. That’s big savings for Colorado employers and demonstrates an improvement in safety across many sectors.
Factors that may impact workers’ compensation costs include: frequency of injuries, duration of claims, number of treatments for each claim, severity of injuries, increasing medical costs, and overall costs to cover workers’ compensation claims. Decreasing loss costs means the workplace has become consistently safer, a win for workers and businesses. The National Council on Compensation Insurance (NCCI), a rating and advisory organization that found that both severity of medical claims and the costs of claims are decreasing.
“Workers compensation insurance is essential to protect employees who have been injured on the job,” said Colorado Insurance Commissioner Michael Conway. “The decreasing loss cost component of compensation shows that Colorado employers are working to prevent injuries and keep employees safe.”
This average loss cost is calculated across all worker classifications within the manufacturing, contracting, office / clerical, goods and services industries, and miscellaneous industries.
Even as statewide average loss costs have been decreasing for years, and will again decrease 6.9% for 2026, employers may see their premiums increase, decrease, or remain the same based on a variety of factors.
NCCI collects annual data on workers’ compensation claims for the insurance industry, and publishes loss costs that form the basis for all workers’ compensation premium determinations. All insurers in Colorado use the NCCI loss costs as a base. Each insurer's own expenses are added to the NCCI’s loss costs to arrive at the rates charged to employers. This is another reason why an individual employer’s specific rate change may be different from the -6.9% change.
The projected loss cost figures for 2026 were submitted by NCCI to the DOI earlier this year. The independent actuarial firm. The Davies Group was contracted to review the analysis for all of the industry classes in Colorado. The NCCI filing, the actuarial analysis and any public comments are used by the Colorado Insurance Commissioner to establish the loss costs used for the premium rates for the upcoming year.
To view the 2026 NCCI loss cost filing, individual classification codes and the final order of approval from the Commissioner of Insurance, visit the DOI’s Workers’ Compensation website.
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