NCCI PROPOSES 13% WORKERS COMPENSATION RATE DECREASEAugust 28, 2018
Workers Compensation insurance rates for Florida businesses look to decrease again on January 1, 2019. NCCI has filed a proposed rate decrease of 13.4% with Florida Office of Insurance Regulation (OIR), citing a combination of the long-term decline in claims frequency. If approved, this will be the third decrease in workers compensation rates since 2016.
NCCI also said the impact of the 2016 Florida Supreme Court cases Castellanos v. Next Door Company and Westphal v. City of St. Petersburg are only “now starting to exert upward pressure on system costs.” Castellanos found the state’s mandatory attorney fee schedule unconstitutional. Westphal found the 104-week statutory limitation on temporary total disability benefits unconstitutional. The full effects of these decisions will be felt in the future.
If the OIR approves the rate decrease, a business’s future experience modification factor may become more vulnerable. That’s because there will be fewer premium dollars to pay claims. Having robust safety and health practices in place to control and minimize workplace injuries will be critical to protect future experience modifications.
The OIR must approve the proposed rates before they are implemented. Historically the OIR has requested changes to the initial rate filing. Regardless, a decrease of some proportion seems almost certain.
Regardless of the outcome, we will continue to work with underwriters for quality dividend plans to help keep your business competitive and the coverage affordable.
If need assistance with planning, safety and health programs, or have questions about how the upcoming rate changes might affect your business please don’t hesitate to call our office.
Treweek Insurance Agency