The National Council on Compensation Insurance (NCCI) recently filed with the state Office of Insurance Regulation a proposal that would lead to an average 5.4% rate decrease for employers, effective January 1, 2020.
The exact amount of the rate decrease will be determined after the Florida Office of Insurance Regulation (OIR) holds a public hearing in October to discuss NCCI’s rate request and the Insurance Commissioner issues a formal decision. If the proposed rate decrease is approved, it will take effect January 1, 2020 and will apply to workers’ compensation policies as they are issued or renewed on or after that date.
Please note: The -5.4% decrease is an average rate decrease across all industry types. The rate change for your specific workers’ compensation policy may be different. The average proposed rate decrease by industry group is:
- Manufacturing -6.3%
- Contracting -7.4%
- Office & Clerical -4.94%
Gulfshore Insurance will provide additional information following the final rate decision. If you have any questions or concerns regarding this information, please contact us. We are here to assist you and happy to answer any questions you have.
Hurricane Irma’s historic size and impact have been felt throughout the state. In addition to its impact on Floridians and their property, Hurricane Irma has the potential to impact your insurance after the fact. It is important to make sure you have the proper coverage in place before accepting projects outside your normal scope of operations; leasing and operating new equipment; or hiring new sub-contractors.
Below are several important post Hurricane Irma considerations to make.
WORKERS’ COMPENSATION: Employees may be working extensive overtime hours or you may be hiring temporary sub-contractors.
- Consider increasing payroll exposures now so your work comp audit is not negatively impacted at year end. Be sure to break out overtime pay so that at the time of the premium audit, the auditor will be able to discount it back to straight time. If the auditor cannot readily break out the overtime portion, it will be used in calculating the premium.
- If hiring temporary workers or sub-contractors, make sure those workers have insurance and obtain proof of coverage. If hiring a subcontractor who does not have workers’ compensation coverage or it gets cancelled and one of the sub’s employees gets hurt, the responsibility for that injury can fall to you. This will ultimately impact your work comp experience mod and insurance premium. It’s the same situation when hiring an exemption holder. If that exemption expires and the subcontractor does not renew it in a timely fashion, that sub is no longer exempt. If he/she is hurt on the job, a claim can be filed against your company to cover the injury. To quickly look up the status of a sub-contractor’s work comp insurance, you can do so here: Search for Proof of Compliance
- If undertaking or bidding projects outside of your normal scope of operations ensure you are aware of the appropriate class codes and rates for that work. Workers’ Compensation class codes are specific to the type of work being performed, and the rates can vary greatly. New or complimentary operations often require additional class codes being added to your WC policy. Make sure you’re aware if the new class code comes with a higher rate, so there will be no surprises at the year-end audit.
EQUIPMENT FLOATERS & INLAND MARINE: Leasing & operating temporary equipment could put you at risk.
- If you lease temporary equipment, then you should verify the limits of your insurance coverage and possibly increase your coverage limits.
- Unusual equipment often requires special coverage. In addition, renting equipment with an operator will require proof of insurance for the operator as well. Some equipment, such as cranes or lift trucks with large booms require special coverage and needs to be discussed with your Account Manager or Client Advisor to ensure it is properly covered for weight of load, tipping, etc.
- In addition, if you are renting a crane with an operator, the rental company should be providing the coverage – for the equipment, employee (workers’ comp), and any associated general liability for operating the crane. Be sure to review the rental agreement with your Client Advisor or Account Manager to make sure that you are protected and that you obtain proof of coverage from the crane company.
MOLD: Do not end up with a mold-related lawsuit; have the proper coverage in place.
- With hurricane related water damage, inevitably comes mold. If you become involved in any mold mitigation projects, make sure to have proper pollution and professional coverage in place. Without it, you will not be covered against claims from removal, disposal, or cleanup work.
GENERAL LIABILITY: Policy exclusions may impact the scope of work you are taking on.
- For companies that have never worked on residential projects and might be taking on that type of work following Hurricane Irma, it is important to note that you may have policy exclusions that restrict your coverage. Sub-contractors may also have exclusions to their policies for residential, condo, or multi-family work, so it’s critical to verify there are none of these exclusions on your or your sub-contractors’ General Liability policy, prior to performing any of this work.
It is important to discuss these considerations with your trusted Client Advisor or Account Manager at Gulfshore Insurance to ensure you have the proper protection. If you have any questions or concerns regarding this information, please contact us. We are here to assist you and happy to answer any questions you have.
After 3 years of workers compensation rate increases, Florida based companies may see a small decrease come 2015. The National Council on Compensation Insurance Inc. announced in a statement on Friday, August 22 that they are recommending an overall rate decrease for workers compensation in Florida. This has not happened statewide since 2010.
NCCI is the licensed rating and statistical organization that fosters a healthy workers compensation system for Florida. They suggested an average rate decrease of 2.5% with an effective date of January 1, 2015. The decrease is still pending approval from the Office of Insurance Regulation, who makes the final decision. Read more
Tags: Commercial Insurance, Commercial Risk Management, Work Comp, Workers' Compensation
Florida legislature unanimously passed the Florida Information Protection Act of 2014 (FIPA) on April 30, 2014. The new bill requires specified entities to take reasonable measures to protect and secure data containing personal information in electronic form and for them to notify individuals of data security breaches within 30 days of the occurrence. This bill went into effective on July 1, 2014. Understanding the changes and how it impacts your business is vital.
Due to increasing frequency of cyber security breaches, this statute became a necessity for the state legislature to address the growing concern. Last year alone, corporations experienced a 15 percent increase in average data breach costs – totaling about $3.5 million. The most common, not to mention most costly, type of data breach is a malicious insider or criminal attack. Read more
Tags: Commercial Insurance, Commercial Risk Management, Cyber Breach, Cyber Crimes, Cyber Protection, Cyber Security, Risk Management
Traditional insurance policies were not designed to insure against the emerging risk of cyber incidents, though limited coverage may be available with some programs. The Business Owners Policy that is commonly purchased by small to medium sized businesses rarely covers even a limited amount of electronic data loss for a business. There are however some common policies that can offer a bit more coverage such as some boiler and machinery, directors and officers or even crime policies but the limits are usually low and the coverage is very limited. It’s important to be mindful of the increasing vulnerability of your business’s confidential customer and client information as massive data breaches become increasingly popular.
In response to the ever-growing internet reliance, insurers have developed new coverages that apply to a variety of cyber security and other privacy liability risks. Each new program is tailored to meet the unique needs of the individual technology used by the company and level of risk involved. While your company may not need all of these coverages today it is important to know they exist as well as revisit them as your company grows. These coverages are typically available as a package or on an individual basis. Read more
Tags: Commercial Insurance, Commercial Risk Management, Cyber Crimes, Cyber Insurance, Cyber Protection, Cyber Security, Risk Management
