Florida workers’ compensation insurance rates are calculated from three inputs: the NCCI classification code for each kind of work, the rate approved for that code by the Florida Office of Insurance Regulation, and the employer’s experience modification. Premium is payroll in each code, divided by 100, multiplied by the code’s rate, then multiplied by the mod, which is why two Florida businesses with the same payroll can pay very different amounts.
As an employer in Florida, it’s important to understand how Workers’ Compensation insurance rates are calculated. If rates seem too high, our brokers can help you tip the scales in your direction and get affordable Workers’ Compensation insurance in Florida.
In Florida, Workers’ Compensation ratings are the manual insurance premiums determined by the National Council on Compensation Insurance (NCCI). These ratings are based on a company’s industry and risks and are used to calculate the rate your company may ultimately pay for Workers’ Compensation insurance in Florida. It’s important to understand that insurance rates aren’t set in stone. Even if your company has a high NCCI rating and thus a higher manual premium, it can still find Workers’ Compensation insurance at an affordable rate by partnering with our Florida brokers.
At NPN Brokers, we care about helping employers get the Workers’ Compensation insurance they need. To learn more about how the Florida Workers’ Compensation insurance brokers at NPN Brokers can help you, call us today at (561) 990-3022.
How Does Florida Determine Workers’ Compensation Insurance Ratings?
Florida, like many states, uses guidance from the National Council on Compensation Insurance to determine Workers’ Compensation classification codes and ratings. These ratings, also known as manual premiums, are then used to determine the baseline rate an employer might pay in Workers’ Compensation insurance premiums in Florida.
Though some states have their own agencies for determining Workers’ Compensation insurance ratings, Florida does not. Instead, Florida uses the rating system determined by the National Council on Compensation Insurance.
The NCCI calculates manual premium rates first by evaluating industry and line of work. In many cases, industry indicates risk. So, the NCCI begins this process by breaking types of work into industries. Then, the NCCI gets more detailed, defining specific jobs within an industry. From there, jobs get a rating.
Ratings are generally determined by evaluated risk, not based on specific companies and their histories. The rating is then applied to payroll, which can help employers understand their minimum Workers’ Compensation insurance premiums in Florida.
It can be difficult to determine your company’s NCCI classification code and corresponding rating, especially if you have never had Workers’ Compensation insurance before. Based on the information you provide, our brokers can identify which NCCI classification code and rating best align with your company’s practices so that you can learn your Workers’ Compensation insurance liability in Florida and begin estimating the cost.
How Do Workers’ Compensation Insurance Ratings Help Calculate the Rate You Pay in Florida?
While crucial in determining baseline coverage cost in Florida, Workers’ Compensation insurance ratings aren’t the only factors considered by carriers when calculating premiums. After learning your rating according to definitions from the National Council on Compensation Insurance, a carrier might weigh several other factors to calculate the rate of your Workers’ Compensation insurance premiums in Florida.
Although Workers’ Compensation ratings are important, they are only part of the equation for calculating the cost of insurance. Remember, ratings are used in tandem with a company’s payroll to determine the minimum cost of coverage. However, other factors matter when calculating the actual rate you pay and a company’s given rating.
Your history of workplace injuries might be important. Some insurance carriers hike the cost of coverage for companies with previous employee injuries and Workers’ Compensation insurance claims.
Age also matters. The newer a company is, the less time it has had to prove itself to carriers. If a Workers’ Compensation insurance carrier isn’t sure about your ability to maintain a safe working environment for employees, it might increase the cost of coverage.
While there are objective factors to consider when calculating Workers’ Compensation insurance rates in Florida, like a company’s NCCI rating and payroll, more subjective factors are also in play. Our Florida Workers’ Compensation insurance brokers can help you understand how those subjective factors might affect the rate of your insurance premiums when evaluated with your company’s NCCI classification.
How to Find Workers’ Compensation Insurance in Florida at a Low Rate
When employers learn of their Workers’ Compensation classification code and rating defined by the National Council on Compensation Insurance, they might be concerned about the impending cost. While that’s understandable, the cost of forgoing coverage may be more extreme. And, with our Florida Workers’ Compensation insurance brokers by your side, you can still find affordable coverage despite having a high NCCI rating.
A Workers’ Compensation rating from the NCCI partly influences the coverage cost. However, it doesn’t have to increase premiums unnecessarily. Our brokers have relationships with Workers’ Compensation insurance carriers that offer flexible and affordable coverage to various companies, regardless of their NCCI code and rating. You may be able to get a pay-as-you-go policy or one that does not require contracts, audits, or deposits, whatever the rating for your company may be.
The alternative, going without coverage, is unwise for employers in Florida. Florida’s penalties for non-compliance are often severe. For failure to have Workers’ Compensation insurance when required, employers may face a financial penalty equal to twice the premium they would have paid for any time they were uncovered in the preceding 12 months (24 months for concealed payroll or a prior violation), or $1,000, whichever is greater. In Florida, employers may also face additional penalties and jail time for non-compliance with Workers’ Compensation insurance requirements. In addition to these penalties, employers may be financially liable for an injured worker’s losses if they don’t have Workers’ Compensation insurance in Florida.
The rate you pay for Workers’ Compensation insurance doesn’t have to be totally determined by your company’s NCCI classification and rating. To get insurance at a comfortable rate regardless of your company’s history, reach out to our Florida Workers’ Compensation insurance brokers.
Staffing agencies are rated on their placements, which is why the agency’s own office code rarely drives the premium; see workers’ comp for staffing agencies in Florida. For the levers that lower the number, see how to get the cheapest workers’ comp insurance.
Frequently Asked Questions
How are workers’ comp rates calculated?
Each class code carries a rate per $100 of payroll, set from the claims experience of every employer in that class. Payroll in the code divided by 100 and multiplied by the rate gives the manual premium; the experience mod then raises or lowers it based on the employer’s own claims history, and carrier credits or debits and state assessments are applied on top.
How much does workers’ comp cost in Florida?
There is no single figure. A clerical office pays one of the lowest rates in the table and a roofing crew one of the highest, and an experience mod above 1.00 raises either. The only reliable number is a quote built on your payroll by classification; our guide to the average cost per employee in Florida walks through the formula.
How are workers’ comp rates determined in Florida specifically?
Florida does not run its own rating bureau. NCCI files the classifications and rates, the Florida Office of Insurance Regulation approves them, and carriers writing in Florida apply the approved rates, differing in the credits and billing terms they offer rather than in the base rate.
Call Our Florida Brokers and Get Workers’ Compensation Insurance Today
If you need Workers’ Compensation insurance at an affordable rate, our brokers can help. To learn more about how the Florida Workers’ Compensation insurance brokers at NPN Brokers can help you, call us today at (561) 990-3022.