The Colorado Division of Insurance (DOI) published a bulletin announcing that it has approved a rate reduction for a component of workers' compensation premiums for 2025. 

A reduction of 4.3% has been approved for the average loss costs component of the workers' compensation premium. Loss costs represent the average cost of lost wages and medical payments of workers who qualify for workers' compensation. Factors contributing to the average loss costs include frequency of injuries, severity of injuries, and medical costs. 

The reduction marks the eleventh straight year of reductions of the average loss costs component in Colorado, totaling a cumulative 53.5% reduction in that time. The 4.3% decrease represents an average–an employer's specific rate change may be different depending on their classification or industry type. Additionally, some employers may see an increase in premiums if the other components that make up the premium offset the reduction.