Florida Workers Comp Rates

Florida is an “administrative state” which means the state sets the rates for workers comp for each “class code.”

You would think this would mean everybody pays the same for their workers comp insurance.

Not so. There are several modifiers and discounts that can be applied to premium payments.

Written Safety Program Credit
If you have an approved, written safety program the carriers are authorized to give you an overall 2% discount.

“Drug-Free” Workplace Credit
If your workplace employs an approved drug testing program you are eligible for an additional 5% discount on premium.

Stock Company Discount
The state allows Stock Company Carriers (as opposed to Mutual Carriers) to discount premium at larger volumes, in the approx. range of 8 to 14%

Experience Modifier (Mod)
The National Council for Compensation Insurance (ncci.com) is tasked with determining a premium multiplier for companies in various states, including Florida. Everyone starts at 1.0. Should you demonstrate good claims history, you can be assigned a “credit mod” – a number under 1.0. For example a 0.8 mod is basically saying the same thing as a 20% discount. Conversely, a “debit mod” (greater than 1) can be assigned for poor claims history.

Deductible Discounts
In the case of larger clients, a discount can be approved by the state insurance office for a deductible credit. These can start small (say $500) and go all the way up to “high deductible” credits ($1 million for example.)

PEOs often use high deductible policies to share the risk with the carrier for their clients.