Workers Compensation in Florida

Florida Workers’ Compensation Insurance Coverage: South Florida Guide

• Medical expenses: Covers 100% of necessary medical treatments, including doctor visits, surgeries, medications, and rehabilitation.
• Lost wages: Pays approximately two-thirds of an employee’s average weekly wage during recovery.
• Disability benefits: Offers temporary or permanent disability payments for injuries that impact an employee’s ability to work.
• Death benefits: Covers funeral costs and provides financial support to dependents in case of a fatal workplace incident.

1. Payroll Size: Premiums are based on your total annual payroll, calculated per $100 of payroll. Higher payrolls result in higher premiums.

    
2. Job Classification Codes: The National Council on Compensation Insurance (NCCI) assigns class codes to different job roles based on risk levels. For example, a roofer (higher risk) has a higher rate than an office clerk (lower risk). For more info on NCCI, visit their website HERE.

    
3. Experience Modification Rate (Ex-Mod): This multiplier adjusts your premium based on your claims history compared to similar businesses. A lower Ex-Mod (indicating fewer claims) reduces costs or credits the policy, while a higher Ex-Mod adds a surcharge or increases premiums.

    
4. Product Type: There are many different types of workers compensation programs for employers in Florida, including Guaranteed Cost, Dividend Plan, Paid Loss Retro Plan, Incurred Loss Retro Plan, FWCJUA Plan, Self-Insured Plan, Self-Insured Group, Employee Leasing and a Captive Insurance Program.  For a more detailed overview of each program click HERE. 
   

    

1. Implement a Robust Safety Program
   • Create a formal, documented workplace safety program tailored to your industry (e.g., construction safety protocols for Miami contractors).
   • Establish a safety committee with employee involvement to promote accountability.
   • Train employees regularly on safety practices to prevent injuries.
   • Benefit: A strong safety program can qualify you for a Workplace Safety Discount and lower your Ex-Mod.

      
2. Effective Claims Management
   • Prompt Reporting: Encourage employees to report injuries within 30 days to streamline claims and reduce disputes. Employers must submit documentation within seven days.
   • Medical-Only Claims Discounts: Many insurers offer discounts for claims that involve only medical expenses (no lost wages). Work with your insurer, injured employee and treating physician to classify claims as “medical-only” when possible to reduce your Ex-Mod impact.
   • Return-to-Work Programs: Develop a light-duty program to help injured employees return to work sooner, minimizing lost wage claims. For example, a Fort Lauderdale retailer could assign an injured worker to inventory tasks instead of lifting.
   • Proactive Oversight: Partner with an agency like ours to monitor claims and ensure accurate processing, reducing unnecessary costs.                                                                                                                                                                                                                                 
3. Ensure Accurate Employee Classifications
   • Work with an agent that verifies your employees’ job roles are correctly classified under NCCI codes. For instance, misclassifying an internal salesperson as an external one could inflate premiums due to perceived higher risk.
   • Conduct regular payroll audits to avoid overpaying based on inaccurate estimates.                                                                                   
4. Leverage Dividend Plans
   • Some Florida insurers offer dividend plans that return a portion of premiums (from 5% to 40% or more) to policyholders with low claims at the end of the policy term.
   • Ask your South Florida insurance agent about carriers offering sliding scale dividends or flat dividend and ensure your safety and claims management practices maximize eligibility.                                                                                                                                                                           
5. Adopt a Drug-Free Workplace
   • Implement a zero-tolerance policy for drug and alcohol use, as these contribute to up to 65% of workplace accidents.
   • A certified Drug-Free Workplace Program can qualify you for premium discounts.                                                                                     
6. Shop Around for Quotes
   • Work with a South Florida insurance agency like ours to compare quotes from top carriers that offer competitive programs in our area.
   • Explore Pay-As-You-Go options to align premiums with actual payroll, improving cash flow for businesses in dynamic markets like Miami.

• Customized Coverage: Tailored workers’ comp policies for industries like construction, healthcare, and retail.
• Local Expertise: Deep knowledge of South Florida’s regulatory landscape and market trends.
• Claims Support: Proactive claims management to minimize costs and ensure compliance.
• Competitive Quotes: Access to top carriers with dividend plans and discounts.