Workers Compensation Rate Increase 17.1%
Florida business owners may soon be paying nearly 20% more for their workers compensation coverage. In response to a recent decision from the Florida Supreme Court, the National Council on Compensation Insurance (NCCI) filed a 17.1 percent rate increase with the Florida Office of Insurance Regulation (OIR) on all new policies, as well as renewal and additional policies in effect on a “pro-rata” basis.
The Supreme Court’s decision is also expected to increase overall system costs in Florida for accidents that occurred prior to August 1, 2016 that are open or could be re-opened. Unfortunately, the expected 17.1% mid-year across-the-board rate increase does not consider the retroactive impact of the Castellanos decision. The NCCI anticipates that this will create significant unfunded liability for the retroactive impact of the Castellanos decision. Therefore, NCCI is still evaluating the expected retroactive impact at this time and MBA will update you again when additional information is available.
Lowering Workers Comp Rates – Use Employee Leasing
What is Employee Leasing?
The biggest misconception about “Employee Leasing” is its name, which implies “the leasing of employees”; the staffing by another party such as a “Temp Agency”, or “Staffing Company”. This is not what an Employee Leasing Company does… not even close.
An Employee Leasing Company, aka PEO (Professional Employer Organization) is a firm that provides a service under which an employer can outsource employee administrative tasks, such as all payroll, employee benefits, workers’ compensation, risk/safety management and healthcare. A PEO bundles all of these services together in one bill.
A key service provided by a PEO is securing work comp insurance coverage at a lower cost than their client can obtain on their own.
Benefits to Employer
Employers utilizing the services of a PEO are able to focus on the big picture of growing their business by eliminating day-to-day administrative tasks. Small businesses have a better success rate when using a PEO.
- Obtain High-Risk Work Comp
- Compliance Assurance
- Lower Premiums
- Better Success Rate
- Reduce Administrative Expenses
Is Employee Leasing right for your Florida Business? Click here to learn more or call us at 1-866-684-5684.