Gulfshore Insurance > Gulfshore Blog > Cost Control

For the past quarter century, the amount of OSHA penalties has remained static due to an exemption contained within the Federal Civil Penalties Inflation Adjustment Act of 1990. However, new increases were recently introduced through the Bipartisan Budget Act – Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, which was passed on November 2, 2015.

This bill contains a provision that eliminates the previous exemption applicable to OSHA penalties and, in addition, requires the federal agency to increase their penalties on an annual basis to keep up with inflation. Going forward, the annual increases will be based on the Consumer Price Index.  The legislation also gave OSHA the ability to implement an initial large increase of 78% to compensate for lack of inflation increases since the last adjustment in 1990. This significant increase is reflected in the difference between the existing maximum penalty and the new maximum penalty amounts in the chart below.

Violation Type Existing Maximum Penalty New Maximum Penalty
Other-Than-Serious Posting Requirements $7,000 per violation $12,471 per violation
Serious $7,000 per violation $12,471 per violation
Posting Requirement $7,000 per violation $12,471 per violation
Failure to Abate $7,000 per day beyond the abatement date $12,471 per day beyond the abatement date
Willful or Repeated $70,000 per violation $124,709 per violation

The new penalty amounts take effect and will apply towards fines imposed after August 1, 2016, which will also include any related violations that took place after November 2, 2015.

This development and the recent OSHA Recordkeeping Ruling are causes for businesses to be extra vigilant in ensuring they have an adequate safety program in place, are aware of any potential workplace hazards, and verify whether their employees are up-to-date on appropriate safety training.

For further information regarding the new increases to OSHA penalties, please see the additional resources below.

Resources and additional links:


Ashley Garner, CPCU, AIC, AINS is a Risk Management Associate at Gulfshore Insurance. Ashley works with a wide range of business clients to deliver strategic risk analysis and guidance. Comments and questions are welcome at


injured hand and work injury claim form

Promptly reporting workers’ compensation claims is a best practice, and now there’s evidence that a delay in reporting injuries can raise claims costs up to 51%.

Promptly reporting workers’ compensation claims is a best practice, and now there’s evidence that a delay in reporting injuries can raise claims costs. A new study from the National Council on Compensation Insurance, Inc. (NCCI) reports that a delayed injury report can increase compensation claim costs up to 51 percent as the condition worsens. The simple strategy of reporting claims promptly can significantly reduce claims costs.

NCCI researchers found that claims costs can climb after a delay of only seven days. A report more than 29 days after an incident may result in costs nearly 49 percent higher. One reason for the increase is that attorneys are more likely to become involved in comp cases the longer a claim is delayed. Employers are encouraged to help employees understand that prompt reporting of an accidental injury decreases the likelihood of an attorney’s involvement, according to J. Bradley Young, a partner with Harris, Dowell, Fisher & Harris, who works on compensation cases.

“I still deal with employers every day who feel that if they educate their workforce about comp laws, they’re simply telling their employees how to get more money out of comp claims, which isn’t the case,” Young told researchers.

Other obstacles to early reporting in the workplace are the perceptions that the employee who reports an injury will be doubted or considered lazy and not wanting to work. By not coming forward, some injuries can worsen, making costly measures such as surgery more likely. Employers can boost employee morale by communicating that injuries are a serious matter, and that employee well-being is a priority.

Based on the NCCI survey, employers who educate their workforce about early reporting and who demonstrate concern for all workplace injuries can significantly help create positive benefits for their employees while minimizing claims costs.

Contact the Gulfshore Insurance Risk Management Team with questions concerning claims reporting processes, as well as tools available to help mitigat workplace risks.

Tim Spear is a Client Advisor and Partner at Gulfshore Insurance. Tim works with a wide range of business clients to deliver strategic risk management and commercial property and casualty insurance guidance.

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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

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Well, here we are, it’s that time of year when we start receiving calls from our condominium association managers and Boards of Directors requesting us to pull out our crystal ball and provide the 2014 insurance budgets!

Have you been wondering what you can expect in 2014? We’re breaking down what you can expect as you begin the planning process.

When we prepare a budget for any association, it is primarily for the purpose of providing you with the most accurate “indication” of possible insurance renewal premiums utilizing our knowledge of the most current market conditions and trends.

Our goal is to properly protect the assets of the association with financially viable insurance at the most competitive cost. Budgeting, requires that we take a closer look at your policies, coverages, appraisals, and market conditions and then project our best estimate of where the costs will be at your next renewal. Read more

Gravity–what’s it costing you?
According to recent data, the total annual cost of slip and fall injuries in the United States in over $60 billion annually. There is more involved in preventing a slip and fall accident than just placing the proper signage at a slippery entrance. Property Managers and Board Members should always prepare for the worst and hope for the best. Below is an action plan to help you manage slips, trips and falls at your association.  Click here to download a Slip & Fall Checklist to use at your association. Read more

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