Adjust Experience Modification Factor in Workers' Compensation

Lower workers’ compensation premiums for qualifying employers

Beginning January 1, 2027, Colorado employers can get workers’ compensation premium credits for qualifying claims closed on or after the effective date. The claim must have been reported as open for more than the final amount paid. The employer or licensed insurance producer must notify the insurer after reporting to the rating bureau, through 31 days after the employer’s rating effective date. Insurers, including Pinnacol Assurance, must request a revised experience modification factor—the employer’s insurance rating factor. The revision uses actual claim payments, excluding reserves set before closure. It must lower the previously released factor by at least 0.05, or bring it from above 1.0 to 1.0 or below. The rating organization must adjust the factor within 30 days after the insurer’s notice. The insurer must credit the resulting premium change within the employer’s policy period. A referendum petition filed within 90 days after legislative adjournment prevents the law from taking effect without voter approval in November 2026. With approval, the effective date is January 1, 2027, or the governor’s declaration of the vote, whichever is later.