The figures presented in this guide were drawn from a December 1999 survey of all licensed workers' compensation insurers. Workers' Compensation and Employers Liability Insurance Workers' compensation coverage provides employers and employees with medical care, death benefits, and lost wage replacement for work-related injuries and illnesses.
State law requires all employers in Colorado to obtain workers' compensation insurance.
The LCMs presented in this guide are a combination of each individual insurer's pure premium rate adjustment, and the expense provision. The pure premium rate adjustment reflects the percentage difference between an individual insurer's costs to pay and adjust claims, and the industry's average cost to pay and adjust claims. The expense provision in the LCM provides for the various operating expenses incurred by each insurer. The LCM is used, along with industry average loss cost rates, classification codes, and employer payroll to calculate the initial premium. Classification codes are used to categorize the type of business the employer transacts.