What Are the Average Workers Comp Insurance Prices in Florida

Workers’ compensation laws vary by state, and Florida is no exception. The Department of Financial Services regulates workers’ compensation laws in Florida to help protect business owners as well as employees. All business owners who have four employees or more must provide workers’ compensation coverage in Florida.

Business owners may be wondering about Florida workmans comp prices before committing to hiring multiple employees, and understandably so. There are multiple factors that influence the price of Florida workers comp prices for employers. 

Influencing Factors

There are some elements that are considered when calculating Florida workman’s comp prices for employers, and they are typically the same in other states, too. Some elements which are commonly considered include a business owner’s total payroll and the location of their business. 

The company’s claims history is taken into account, along with the number of employees they have and the type of work completed by employees. More dangerous work is typically more costly when it comes to Florida Workmans’ comp prices. 

Classifying Employees for Workers Compensation

When it comes to Florida workmans comp prices, employees are classified into risk categories to determine their cost. Employees with desk jobs may be classified in a lower-risk category which comes with a lower cost, while employees who work with power tools may end up in a higher-risk category. 

Proper employee classification can help lower Florida workmans comp prices for employers while providing workers with the necessary coverage. Deliberate employee misclassification can result in hefty fines for employers or business owners.

Average Florida Workmans Comp Prices

The average Florida workmans comp prices tend to rest around $1.25 per $100 in covered payroll, but this is just an estimated average. Employers who hire seasonal or fluctuating employees may purchase a different type of Florida workers compensation insurance that offers a lower premium. 

This separate type of workers’ compensation insurance is based on an employer’s actual payroll costs instead of estimated payroll costs. It helps keep Florida workman’s comp prices lower and more affordable for nontraditional employers. Those looking to keep prices affordable can also institute a safety program for employees.  

Florida Workers Compensation Class Codes

Florida workman’s comp prices are based on employee class codes, as stated above. The National Council on Compensation Insurance (NCCI) governs the Florida workers compensation process and creates the class codes used by employers. The NCCI also analyzes past claims data in Florida for each class code to recommend the rates used by each workers’ compensation insurance carrier in Florida. There are nearly 600 different worker classifications in Florida. 

Affordable Florida Workmans Comp Prices

The Florida workman’s comp prices are governed by the NCCI which recommends rates for each class code. Modification factors are also used to keep Florida Workman’s comp prices affordable for each class code. Employers help manage costs by correctly classifying employees and instituting consistent safety programs for workers. Calculating Florida workmans comp prices is a complex process that helps provide much-needed coverage for workers while mitigating risk for employers and business owners. 

Adam Hansen

Adam is a part time journalist, entrepreneur, investor and father.