What Should Workers’ Comp Insurance Cost in Florida
Workers’ Compensation insurance will cost different amounts for different companies in Florida. To understand the proper cost of insurance for your business, you will have to consider a few different things.
To learn what Workers’ Compensation should cost for your business, you will need to learn its National Council on Compensation Insurance (NCCI) rate. You should then consider the number of workplace accidents your company has seen in recent years, its payroll, and other risk factors, like its age. That will give you a clearer idea of the appropriate cost of your company’s Workers’ Compensation. If your current insurance is too expensive, our experienced brokers can help you find a more affordable option. Don’t cancel your plan without finding a new one, as doing so could leave your company open to possible penalties.
For help finding affordable a policy for your business, call the Florida Workers’ Compensation insurance brokers at NPN Brokers at (561) 990-3022.
How to Determine What Workers’ Comp Should Cost for Your Florida Businesses
Employers should understand what goes into pricing Workers’ Compensation policies so that they can more easily identify plans that cost too much. To figure out what Workers’ Compensation should cost for your business, start by learning your company’s National Council on Compensation Insurance code and rate. Then, take an honest look at your company’s other risk factors, such as its history of workplace incidents and the size of its payroll.
Find Your NCCI Code
Florida uses rates determined by the National Council on Compensation Insurance to help regulate Workers’ Compensation premiums. The NCCI takes information about industries and their propensity for workplace accidents and sets Workers’ Compensation insurance rates accordingly. These rates correspond to workers in very specific industries. For example, drywall installers and painters have specific NCCI rates in Florida. This rate will determine the lowest cost of your company’s Workers’ Compensation insurance when applied to its payroll. If an insurance company uses the wrong NCCI code when pricing your Workers’ Compensation premiums, the amount you are charged for insurance might be incorrect.
Audit Your History of Accidents
After determining the starting point for how much your company’s Workers’ Compensation insurance will cost in Florida using guidance from the NCCI, insurers will then begin to assess other risk factors. These include a company’s past regarding workplace accidents. Companies with many on-the-job accidents in recent years might be given higher Workers’ Compensation premiums. For this reason, high-risk companies can partner with our Florida Workers’ Compensation insurance brokers to get in touch with carriers that provide affordable insurance, despite a company’s risky history.
Determine Your Payroll
Payroll also comes into play in regard to Workers’ Compensation costs. Your company’s payroll will be applied to its NCCI rate to help determine the amount of money Workers’ Compensation will cost. The more workers you employ, the more expensive your Workers’ Compensation coverage might be. In addition to considering payroll in that way, insurers might determine that you are at a higher risk of workplace accidents because you employ so many workers. Generally, companies with smaller payrolls can get less expensive Workers’ Compensation from the get-go, even if they operate in high-risk industries in Florida.
Assess Other Risk Factors
There are other risk factors that can influence the price of your company’s Workers’ Compensation. For example, companies that are newer, meaning they have just recently been established, might be given more expensive Workers’ Compensation policies. This could happen for several reasons. First, newer companies have not yet had time to prove that they are capable of maintaining a safe environment for workers. Second, insurers might think that a new business owner is inexperienced in assessing Workers’ Compensation premiums and might initially present them with a higher premium rate. We can identify such tactics so that you do not agree to an unnecessarily expensive Workers’ Compensation policy, even when considering your business’s possible risk factors.
Other things, like the cause of previous workplace accidents, could impact how much a company’s insurance costs as well. For example, if there have been multiple instances of employees being injured due to drug or alcohol use, an insurer might be wary of providing you with less expensive coverage. You can circumvent this by enforcing a drug-free workplace. In doing so, the Division of Workers’ Compensation will apply a 5% decrease to your company’s Workers’ Compensation premiums.
What if Workers’ Comp Insurance Costs Too Much in Florida?
If you have recently assessed your company’s Workers’ Compensation premiums and determined that they are too expensive, you may be able to find a more affordable plan that still meets your needs.
All companies have risk factors associated with them that might increase the overall expense of having Workers’ Compensation. Still, it is possible to find affordable policies that are comprehensive and cover all of your employees without breaking the bank. To achieve this, contact our brokers to gain access to plans from trusted carriers that do not attach unnecessary fees to Workers’ Compensation policies.
It is important that employers understand the significance of going without Workers’ Compensation. Suppose you decided your premiums were too high and you were going to cancel your policy, leaving your company and its employees uncovered. In that case, the Florida Division of Workers’ Compensation might impose financial penalties on your company. The current penalty for non-compliance is twice the amount you should have paid for Workers’ Compensation for any time you were uncovered over the past two years. Additionally, employers might face criminal consequences for failing to comply with Workers’ Compensation requirements, which include possible jail time and fines. The price of being uncovered is certainly costlier than the price of getting Workers’ Compensation insurance in Florida.
Call Our Florida Brokers to Get Workers’ Comp Insurance
Call (561) 990-3022 to speak with NPN Brokers about getting coverage from our Tampa Workers’ Compensation insurance brokers today.
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