Florida Insurance Commissioner has approved a 4.9% average decrease in workers’ compensation rates for 2022, as recommended by the National Council on Compensation Insurance. The decrease is the sixth straight for Florida. Last year, the NCCI proposed a 5.7% cut but the Florida Office of Insurance Regulation demanded more and ultimately approved a 6.6% decrease for 2021.
Rates jumped in 2017, after a landmark court ruling struck down statutory limits on attorneys’ fees. But loss costs and rates have fallen every year since then.
The latest rate decrease will take effect Jan. 1 for new and renewing policies. While changes in experience, trends and medical and indemnity benefits have declined almost 7% in recent years, loss adjustment expense, or the costs associated with handling claims, increased slightly.
The NCCI’s recommendation, filed earlier this year, did not include data or adjustments needed for the impact that the COVID-19 pandemic may have had on Florida comp insurers. Instead, the rating organization proposed a separate catastrophe fund to help manage nationwide, non-terrorism events that result in workers’ compensation losses of more than $50 million. The fund would have required extra charges to be paid by Florida employers.
The OIR announced that the NCCI has withdrawn its catastrophe provision recommendation. A Nov. 11 letter from NCCI said the provision “will be resubmitted at a future date as and when appropriate.”
Click here to download the 2022 rates.
Gulfshore Insurance is a Naples, Florida based insurance agency specializing in business insurance including liability insurance, property insurance, workers compensation insurance, vehicle insurance, business income interruption insurance, cyber insurance, commercial umbrella insurance, and more. Our insurance and risk management advisors are industry specialists for condominium associations, golf and country clubs, oil and petroleum marketers, construction, landscaping, churches and non-profits, and work comp. Navigating insurance requires an experienced and trusted insurance agent who understands your business risks and exposures. Gulfshore Insurance services Naples, North Naples, Marco Island, Bonita Springs, Fort Myers, Sarasota, Lido Beach, Longboat Key, Bradenton Beach, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.
The Occupational Safety and Health Administration (OSHA) released its preliminary list of the top 10 most frequently cited safety violations at this month’s National Safety Council Congress & Expo, the world’s largest gathering of safety professionals.
The OSHA list is determined following worksite inspections throughout the fiscal year and alerts employees and safety professionals about areas of frequent citations to help prevent their occurrence. OSHA violations can cost some companies more than $1 million in penalties.
Notable among the top 10 list for 2021, companies experienced an increase in respiratory protection violations and a decrease in hazard communication and powered industrial truck violations from prior years. Fall protection remains at the top of the list for the 11th year in a row.
The Top 10 for FY 2021 are:
- Fall Protection – General Requirements (1926.501): 5,295 violations
- Respiratory Protection (1910.134): 2,527
- Ladders (1926.1053): 2,026
- Scaffolding (1926.451): 1,948
- Hazard Communication (1910.1200): 1,947
- Lockout/Tagout (1910.147): 1,698
- Fall Protection – Training Requirements (1926.503): 1,666
- Personal Protective and Lifesaving Equipment – Eye and Face Protection (1926.102): 1,452
- Powered Industrial Trucks (1910.178): 1,420
- Machine Guarding (1910.212): 1,113
OSHA’s preliminary figures found 21,090 citations issued this year, down from 24,239 in 2020 and more than one-third less than the 31,816 issued in 2019. Workplace shutdowns amid the COVID-19 pandemic undoubtedly played a large part in the decrease, but there are still many areas for improvement on the list. Frequent safety training and customized risk management programs can support operational business goals while reducing risk and making the workplace safer.
Jeffrey Sanders, TRIP is Client Advisor at Gulfshore Insurance. Jeff works with a wide range of business clients to deliver strategic risk analysis, guidance, and insurance. Comments and questions are welcome at jsanders@gulfshoreinsurance.com
Gulfshore Insurance is a Naples, Florida based insurance agency specializing in liability insurance, property insurance, workers compensation insurance, vehicle insurance, business income interruption insurance, cyber insurance, commercial umbrella insurance, home and homeowners insurance, car and auto insurance, boat and yacht insurance, property insurance, umbrella insurance, valuables insurance for fine art, jewelry, wine, and more. Navigating insurance requires an experienced and trusted insurance agent who understands your business risks and exposures. Gulfshore Insurance services Naples, North Naples, Marco Island, Bonita Springs, Fort Myers, Sarasota, Lido Beach, Longboat Key, Bradenton Beach, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.
Florida workers’ compensation rates are set to decline again as the National Council on Compensation Insurance (NCCI) has proposed a statewide rate decrease of 4.9% in the voluntary market.
The rates would take effect Jan. 1, 2022 if approved by the Florida Office of Insurance Regulation (OIR).
NCCI is a licensed rating organization authorized to make recommended rate filings on behalf of workers compensation insurance companies in Florida. The filing is based on experience data as of year-end 2020 from Policy Years 2018 and 2019.
If approved, Florida rates will decrease for the sixth time since 2016. NCCI cites underwriting discipline, declining frequency, moderating severity, and adequate reserves for the declining rates. From Oct. 2003 to Jan. 2021, Florida experienced a historical rate level change of -69.9%, according to NCCI.
NCCI said its last annual rating did not include COVID-19 claim data, nor did it include explicit adjustments for the potential impact of a pandemic. NCCI filed a separate catastrophe provision, for any single event or peril resulting in workers compensation losses in excess of $50m nationwide, excluding certified acts of terrorism. The separate filing is pending with the OIR.
Gulfshore Insurance is a Naples, Florida based insurance agency specializing in business insurance including liability insurance, property insurance, workers compensation insurance, vehicle insurance, business income interruption insurance, cyber insurance, commercial umbrella insurance, and more. Our insurance and risk management advisors are industry specialists for condominium associations, golf and country clubs, oil and petroleum marketers, construction, landscaping, churches and non-profits, and work comp. Navigating insurance requires an experienced and trusted insurance agent who understands your business risks and exposures. Gulfshore Insurance services Naples, North Naples, Marco Island, Bonita Springs, Fort Myers, Sarasota, Lido Beach, Longboat Key, Bradenton Beach, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.
The Occupational Safety and Health Administration (OSHA) has announced its preliminary Top 10 most frequently cited workplace safety standards for fiscal year 2020. Although multiple standards swapped positions, the Top 10 violations from FY 2019 to FY 2020 did not change. Ladders (1926.1053) climbed to a top-five spot, and Respiratory Protection (1910.134) rose to the third rank from fifth. Additionally, the data show that Fall Protection – General Requirements (1926.501) is OSHA’s most frequently cited standard for the 10th successive fiscal year.
The Top 10 for FY 2020 are:
- Fall Protection – General Requirements (1926.501): 5,424 violations
- Hazard Communication (1910.1200): 3,199
- Respiratory Protection (1910.134): 2,649
- Scaffolding (1926.451): 2,538
- Ladders (1926.1053): 2,129
- Lockout/Tagout (1910.147): 2,065
- Powered Industrial Trucks (1910.178): 1,932
- Fall Protection – Training Requirements (1926.503): 1,621
- Personal Protective and Life Saving Equipment – Eye and Face Protection (1926.102): 1,369
- Machine Guarding (1910.212): 1,313
Jeffrey Sanders, TRIP is Client Advisor at Gulfshore Insurance. Jeff works with a wide range of business clients to deliver strategic risk analysis, guidance, and insurance. Comments and questions are welcome at jsanders@gulfshoreinsurance.com
Gulfshore Insurance is a Naples, Florida based insurance agency specializing in liability insurance, property insurance, workers compensation insurance, vehicle insurance, business income interruption insurance, cyber insurance, commercial umbrella insurance, home and homeowners insurance, car and auto insurance, boat and yacht insurance, property insurance, umbrella insurance, valuables insurance for fine art, jewelry, wine, and more. Navigating insurance requires an experienced and trusted insurance agent who understands your business risks and exposures. Gulfshore Insurance services Naples, North Naples, Marco Island, Bonita Springs, Fort Myers, Sarasota, Lido Beach, Longboat Key, Bradenton Beach, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.
Fleet vehicle accidents are among the most costly injury claims for businesses. The average cost of a loss related to vehicle accidents is approximately $70,000. This is almost twice the cost of the average workplace injury ($36,592).
Without a formal fleet safety program, you may be putting the welfare of your employees and company at risk. A generic safety program is better than none. But it is far more effective to specifically design a program for your company and your fleet. A fleet safety program establishes the policies and procedures that are needed to help ensure a safe work environment for employees. It can also help protect against liability from vehicle accidents.
For any company with a fleet of vehicles of any size, a formal fleet safety plan can provide a number of
advantages, including improved safety, employee satisfaction, and the potential to improve fleet efficiency.
8 Essential Elements of a Fleet Safety Program
An effective fleet safety program must be comprehensive, up-to-date, and instituted as a part of your company’s safety culture. It should be thorough, reaching each employee who gets behind the wheel. And the commitment has to start at the top.
- Identifying all of your drivers. Businesses may not be aware of the full extent of their non-owned vehicle exposure. You should identify everyone who drives on behalf of the business, even those employees that use personal and/or rented vehicles.
- Management commitment. Leadership support of the program can help assure that the program is used.
- Screening and selecting drivers carefully. This can help create a reliable, safe team. Without safe drivers, no organization is likely to have a good long-term safety record. Establish clear hiring standards and a thorough screening process for anyone who drives on company business.
- Training drivers. This can help to ensure that all drivers understand vehicle safety policies and procedures. All drivers should have access to information on safe driving strategies and techniques, including instruction in defensive driving.
- Managing drivers on an ongoing basis. This is essential in helping to ensure that drivers are following fleet safety rules and driving safely.
- Managing accidents, when they occur. This can help mitigate accident costs. It also helps you to understand your exposures and can reduce the potential for future losses.
- Establishing written policies and procedures. This sets clear consistent expectations.
- Formalizing a plan for vehicle inspection, repair, and maintenance. This can help reduce costly, unexpected breakdowns, and can assist in avoiding accidents due to faulty equipment.
Dave Wissel is a Client Advisor and Partner at Gulfshore Insurance who specializes in construction, landscaping, and the oil and petroleum industries. Comments and questions are welcome at dwissel@gulfshoreinsurance.com
Gulfshore Insurance is a Naples, Florida based insurance agency specializing in business insurance including liability insurance, property insurance, workers compensation insurance, vehicle insurance, business income interruption insurance, cyber insurance, commercial umbrella insurance, and more. Our insurance and risk management advisors are industry specialists for condominium associations, golf and country clubs, oil and petroleum marketers, construction, landscaping, churches and non-profits, and work comp. Navigating insurance requires an experienced and trusted insurance agent who understands your business risks and exposures. Gulfshore Insurance services Naples, North Naples, Marco Island, Bonita Springs, Fort Myers, Sarasota, Lido Beach, Longboat Key, Bradenton Beach, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.
