DENVER— March 24, 2020 — For the fifth consecutive year, Pinnacol Assurance, Colorado’s leading workers’ compensation insurer, is distributing general dividend checks to its customers. This year’s dividend totals $70 million.
Ninety-five percent of Pinnacol’s policyholders are eligible to receive a dividend — that’s more than 50,000 employers in every county throughout the state. The average 2020 dividend check will be $1,319. Checks will be mailed to employers beginning March 24.
“At this time when Colorado businesses and their employees are facing significant financial hardships, we’re glad to be in a position to return some money to our policyholders,” said Pinnacol president and CEO Phil Kalin. “We are also pleased that we have been able to reduce our customers’ rates by an average of 7% this year.”
The general dividend is a portion of a mutual insurance company’s surplus returned to its customers. Many workers’ compensation carriers in Colorado are publicly traded companies that pay dividends to their stockholders. Pinnacol pays dividends to its eligible customers when it is financially able to do so. Eligibility is based on customers’ commitment to safety with timely claims reporting (within 48 hours) and investments in safety education, technology and equipment.
With this year’s declaration, Pinnacol has now returned more than $746 million in total dividends to Colorado’s business community since 2005.