In Florida, all employees are grouped according to their job duties and classification. There is a specific price or rate for each classifications, with each classification representing a specific activity. The estimated losses of the group are added together to determine an average “rate” per class. This cost of workers compensation insurance is the “rate” per $100 of payroll.

Businesses often have multiple classifications to group their employees by job duties and use the rates associated with each classification. The experience modifier and discounts are then applied to this number to get the total “estimated” premium. At the end of the policy period, there will be an audit to determine the “actual” payroll over the year. The difference between the “actual” and the “estimated” premium will be paid or returned.

In Florida workers’ compensation rates are analyzed by a third party company called the National Council on Compensation Insurance (NCCI). The company not only creates the workers comp class codes used in Florida, but also looks at claims data for each group of employees for those class codes and recommends the rates to the Florida Office of Insurance Regulation.

By controlling claims costs and developing an experience modification factor, an employer can reduce their total workers comp premium and there are also insurance carriers that offer premium reducing dividends and other ways to control costs. These experience modifications are computed by NCCI, the National Council on Compensation Insurance. An Experience Rating Plan provides a way for individual employers to have some influence over the future premiums they pay. Because of that, it provides an incentive for employers to develop loss prevention as well as incentives to have the injured employees return to work as soon as reasonably possible. In this way, experience rating benefits employers by promoting occupational health and safety and rewards those that are successful with lower premiums.

Historical Workers Comp Rates

Class Codes                                2015 Rate          2016 Rate          2017 Rate          2018 Rate