Florida Workers Compensation Rates 2019   

Florida Workers Compensation Rates 2019 have been in a state of flux for multiple years. In 2019, the fluctuation is resulting in lower premium rates for workers compensation insurance. The amount it will decrease is by an average of 13.8% starting the first of the year. This was announced by the Florida Insurance Commissioner David Altmaier earlier in November.  This decrease is the third consecutive decline over the previous year and a half. Previous to these decreases, the rate had increased by 14.5% in 2016.

Why has the Florida Workers Comp System been in Flux?

The fluctuations in the Florida Workers Compensation System began in 2016 when there were two court decisions that were ruled upon by the state supreme court. Those two decisions were  Castellanos v. Next Door Company and Westphal v. City of St. Petersburg.

The first decision, Castellanos and Westphal, involved an injured employee who sued his employer Next Door Company after being hurt on the job. The decision in the case set precedent and overturned a previous court ruling.  The ruling set precedent that judges no longer have to stick to the mandatory fee schedule when offering damages in civil suits.  Judges can now award additional compensation for attorney’s fees. This impacted the workers compensation system because insurance carriers anticipated this ruling to cause them to pay out more in the future and resulted in additional premiums.

The case that involved Westphal v. City of St. Petersburg found  the 104-week statutory limitation on temporary total disability benefits to be unconstitutional.  After this decision the Florida Supreme Court reinstated a 260-week limitation.  This increased the amount of time an injured employees can collect partial salary benefits by 156 weeks.  These additional weeks of coverage caused the OIR to approve an average increase of 2.2 percent statewide.

In addition to the two court decisions in 2016, the Florida Workers Compensation System faced additional stresses in 2017. Those stresses stemmed from Guarantee Insurance Company (GIC), the former assigned risk provider, filing for Bankruptcy in November of 2017. GIC was the workers compensation provider for more then 1,000 businesses within the state of Florida. This left more then a thousand business owners scrambling to find new coverage with a new carrier.

What Caused Florida Workers Compensation Rates 2019 to Decrease?   

After the stresses faced by the Florida Workers Compensation System in 2016 and 2017, the market improved in 2018. First and foremost, the state saw continued significant improvement in loss experience. This improvement is partly attributed to a decline in claim frequency from safer workplaces, enhanced efficiencies in the workplace, and am increase in the use of automation and innovative technologies.

Colorado Workers Compensation Rates 2019

Colorado Workers Compensation Rates 2019 will be going down by an average of just more than 10 percent.  This decrease will go in to effect the first of January and will the the fourth consecutive year businesses in the state of Colorado have enjoyed workers compensation insurance premium decreases.

The Colorado Division of Insurance previously approved a recommended decrease of 16.7% based on recommendations from the National Council on Compensation Insurance (NCCI), but Pinnacol (The Colorado State Provider) decided to change the rate at a more modest amount because of longer-term underlying loss and expense trends.  Pinnacol is moving forward with a smaller decrease in order to minimize volatility in the market. Pinnacol would like to do this in order to create stability for business owners over a longer period of time.

In 2017 rates in Colorado were 19 % below the national average. After two additional years decreases, the state workers compensation system will rank even better in 2019.  The state of Oregon does a study every two years entitled, the Oregon Workers Compensation Premium Rate Ranking.  The findings of this study will come out in March of 2019.  Colorado should fair well in these new rankings.

What Contributed to Declining Colorado Workers Compensation Rates 2019?

Colorado Workers Compensation Rates 2019 are declining due to a number of factors. First and foremost is the strength of the economy in the state and the strength of the state provider Pinnacol. Colorado has a unique public private partnership to deliver the assigned risk provider for high risk employers within the state. States that have a strong provider typically enjoy favorable rates on workers compensation premium. In addition to the strength of the economy and the strength of the state provider in Colorado, increased cost efficiency and favorable claims trends driven by safer workplaces are contributing to better rates for workers compensation insurance.

How are Workers Compensation Rates Determined? 

The average cost of workers compensation insurance in most states across the country are dependent upon United States each classification code multiplied by 1 percent per $100 of the total payroll for each individual employee.  Each employee is given a code based upon the duties they partake in. Employers who work on an oil rig 50 miles out in the ocean are given a certain code and office employees are given a different code. Depending upon the risks of the job and the historical claims of that industry each carrier charges more for industries with a high risk of claims.

How is Colorados’ Workers Compensation System Unique?

Colorado has a very unique system for administering workers compensation throughout the business community in the state.  The division of insurance has developed a public private partnership to provide workers compensation coverage to businesses who cannot find coverage on the open market. This public private partnership is called Pinnacol.  It was established more than 100 years ago and was formed to provide stability in the workers compensation market for businesses throughout Colorado.  Pinnacol currently represents more than 56,000 customers.

Top 5 Misclassified Workers Comp Codes

According to the National Council on Compensation Insurance (NCCI), there are five workers comp codes that get classified improperly more then any other class codes. Those codes include  retail, wholesale, hardware, automobile parts and accessories, and furniture and drivers.  The specific workers comp codes that are misclassified include:

• Retail (8017):  frequently confused with; 8010, 8018, 8008, 8044, & 9083.
• Wholesale (8018);  frequently confused with 8010, 8032, 8017, 8232, & 8046.
• Hardware (8010); frequently confused with 8018, 8017, 8058, 8046, & 8011.
• Furniture (8044) frequently confused with 8017, 8018, 8010, 9519, & 8235.
• Automobile Parts frequently confused with (8046); 8380, 8018, 8010, 8391, & 3821.

In most cases, store operations are required to be classified based upon the main type of merchandise sold. (typical meaning 50% of gross receipts). This is similar to the bar and restaurant industry.  The difference between retail and wholesale is that retail sales are for merchandise that is intended to be consumed by the general public for personal consumption. Not to be resold or for B2B sales. Wholesale applies to the sale of merchandise to a business entity with the primary purpose to be resold to toher consumers or businesses.

Common Reasons for Misclassification of Workers Comp Codes

In the retail and wholesale industries, the common reasons for a business to be classified wrong is that the gross receipts for one particular product amount to more than 50 % of all sales. This can happen when a store is a retail establishment that sells multiple products, but if more than 50 % of sales are for say groceries, fruits, vegetables, and meats; this store should be classified as a grocery store at class code 8006. This is also common for retail stores that sell primarily clothing, waring apparel, or dry goods.  Hardware stores are primarily reclassified to workers comp codes 8111 (Plumber Supplies Dealer) or 8046 ( Automobile Parts and Accessories). Again this is only necessary when the gross sales are more than 50% of the total revenue of the business.  In the Auto Industry, the most common misclassification is to class code 8380 (Automobile Service and Repair Center). It is not uncommon for businesses in this industry to service cars and sell auto parts. The deciding factor is amount of retail sales compared to service center sales.  In most cases, the center makes significantly more from the service center and should be classified as such. This can get tricky when businesses sale higher dollar parts like tires or engine parts because of the high dollar value of these items.  Partnering with an accountant and an independent insurance agent can help you prevent misclassifying your business.

Why is it important to be correctly classified?

It is important to be correctly classified for a few reasons, such as:

1. In the event of an audit (Or injury that leads to an audit), if the carrier determines that you were incorrectly classified they can retroactively bill you for up to three years of premium that was incorrectly classified for that policy year.
2. If your employees are misclassified, their claim frequency and loss amounts will be out-of-line with the norm for that class code. Insurance companies use statisticians to keep track of unusual loss patterns, and they will figure it out eventually, resulting in the outcome from bullet point #1.
3. Being incorrectly classified can cause you to get dropped by your insurance carrier. Getting dropped is going to put you in a frantic rush to find new coverage, putting your business to a halt in the meantime. When you then try to get insurance from another carrier, the first question they will ask is “Have you recently been dropped or denied coverage?” If this is true, it will raise a big red flag for the new insurance company. They will most likely either refuse to quote or markup the rate due to the increased risk. As a business, the best way to save money on your workers’ compensation insurance is to build a long, trusting relationship with your carrier.

Make sure Your Employees are Correctly Classified

To make sure your employees are correctly classified, you can generally trust your insurance agent and insurance company to assign you to the correct code. If you disagree with the code you have been assigned you can appeal the classification by following the link to contact the department of insurance for your state. In doing so can have an auditor come to your site, inspect the business operations, and provide a ruling.

Great News Announced about Workers Comp Rates Next Year

Tennessee Workers Compensation Rates 2019 are going to be dramatically better. This past week, Julie Mix McPeak, the commissioner of the Tennessee Department of Commerce and Insurance (TDCI) approved a 19 percent decrease in recommended pure premium rates.  This filing is a result of a recommendation by the National Council on Compensation Insurance (NCCI) for 2019.

Tennessee Workers Compensation Rates 2019

Tennessee Workers Compensation Rates 2019 have decrease for the sixth year in a row. The 19% decrease comes after a 12.6% decrease in 2018 and a 12.8% decrease 2017.  All of these decreases are in addition to the fact that Tennessee had workers comp rates that were the 30 least expensive rates in 2016 and 22 least expensive in 2014.  These rankings are according to the 2016 Oregon Workers’ Compensation Premium Rate Ranking Summary.  This is a study done by the state of Oregon every two years to determine what each state pays for workers compensation insurance. Tennessee should be even lower on this list when the list comes out in early 2019.

Why are the Decreases Happening?

Lower Tennessee Workers Rates 2019 are credit to several factors.  Reforms to the workers compensation system were enacted in 2013 that improved the entire system.  Since these changes have been enacted, lost cost reductions have decreased more than 48%. Significantly lower workplace injuries have contributed to the decrease in premiums.  This decrease in workplace injuries has contributed to lower lost-time claims by employees resulting in less costs to the insurance carriers within the system.  Additionally, according to NCCI both indemnity average cost per case and medical average cost per case have remained “relatively stable” in recent years after adjusting to a common wage level. This means the amount the insurance carriers have had to pay for medical costs to injured workers has decreased significantly.

Workers Compensation Insurance Rates California

Business owners in the state of california are in for a pleasant surprising starting the first of January, 2019. This is because of new Workers Compensation Insurance Rates California. The rates will be down to an average of $1.63 per $100 in payroll.  This is down from $$3.04 per $100 in payroll when the state market peaked in 2015. Since 2015, the rate has dropped every six months for the past 5 years.  This will be an average savings of 23.5% compared to what businesses paid in 2018 for California Workers Comp Coverage. When implemented this premium rate will account for a 72% decrease from when rates peaked in 2015.

Now the pure premium rate is only a recommendation. In the state of California, the legislature has not given the commissioner full rate authority over workers’ compensation rates. Many insurance carriers still offer rates up to 20% higher than the recommended premium.  Not all businesses will be impacted similarly depending upon the industry the business operates in and the loss runs of each individual business.

What contributed to Workers Compensation Insurance Rates California

The decreases in costs in California’s workers’ compensation insurance market is based on insurers’ cost data through June 30th of this year. Many within the industry credit state bill 863 and 1160 and assembly bill 1244. These bills have contributed to favorable medical loss development because of an acceleration in claim settlement.  According to Dave Bellusci, chief actuary with the Workers’ Compensation Insurance Rating Bureau (WCRIB), ‘Fraud investigations, as well as relatively low inflation rates for medical and pharmaceutical costs, are part of the reason insurance rates are lowering’.

Also, the way California has reacted to the prescription drug epidemic has significantly decreased the amount the workers compensation system has paid out for prescription opioids. The amount paid out for opioids prescription drugs was $15,687 per 100 claims in 2013 and has dropped to $3,204 per 100 claims in 2018 according to the WCRIB. Many people within the insurance industry in California are crediting the CURES Program (Controlled Substance Utilization Review and Evaluation System) for helping control this cost.  Under this program the state has set much stricter regulations for health care providers who prescribe opioids.

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Employment Practices Liability Insurance (EPLI) is a type of insurance policy that will protect a business when facing lawsuits related to hiring, employing, and firing employees. EPLI provides financial protection from liability a business faces from candidates, current employees, and former employees. An EPli policy will provide legal protection for a business, a business owner, officers, directors and employees.

In today’s litigious society EPLI Lawsuits have been on the rise for 20 years. According to 2015 study titled the Hiscox Guide to Employee Lawsuits, in 2014 businesses in the U.S. have an 11.7% chance of facing an employment related lawsuit.

EPLI claims can cost employers thousands of dollars in legal fees just to defend. If an employee wins a judgment or settlement, the total cost to a business could be many times higher. Most insurance companies offering EPLI coverage will generally pay or reimburse the business for any costs for defending the lawsuit. They will also pay for any settlements, or awards to the employee, up to the policy limit. Policy limits and deductibles will vary depending on the coverage options selected.

https://www.trustedchoice.com/business-insurance/liability/epli/

https://www.insureon.com/blog/post/2016/05/27/epli-what-small-businesses-should-know.aspx

The Small Business Community will receive a 17.2% decrease in North Carolina Workers Compensation Insurance Premium in 2019

The North Carolina Small Business Community received great news this week in the form of a 17.2 % decrease in Workers Compensation Insurance Premium.  According to most recent data North Carolina has the 23rd highest rate for premium in the United States. Considering North Carolina has the 10th largest GDP of all 50 states, North Carolina Workers Compensation was already at a fairly competitive rate compared to other states across the country. The rates for Workers Compensation Insurance NC have decreased consistently for several years. In 2016 North Carolina Rating Bureau (NCRB) approved an 8.5% decrease and in 2017 NCRB approved a decrease of 12.5%.  The current 17.2% decrease is in addition to these significant decreases. All of this news adds up to an enormous amount of savings for businesses in the state of North Carolina.

Th 17.2% average North Carolina Workers Compensation decrease is not across the board for all businesses or for all industries. Businesses that operate in higher risk industries will still pay considerably more than businesses that operate in an industry with low historical claims. Some industries may receive a larger decrease than the 17.2% recommendation. Many industries will see a decrease that is smaller than this recommended decrease. The most positive part of this news is that nearly all businesses will see a substantial decrease in the amount the business pays for Workers Compensation NC.

There are many factors that go in to what a business pays for workers compensation insurance premium.  The industry a business operates in and the experience modification rating of each individual business has a large impact on what a business pays for premium.  Also, the strength of the assigned risk provider in the state a business operates in has a strong impact on what a business pays for workers compensation insurance. The governing body within state of North Carolina has their own rating bureau. In most cases this does not have a positive correlation to what businesses pay for premium. The North Carolina Rating Bureau is strong. One aspect that contributes to the strength of the rating bureau in North Carolina is that they do partner with the National Council on Compensation Insurance (NCCI) to gather policy data, detailed claim information, and experience rating.  Because the State of North Carolina handles the part of the workers compensation that they can control better than NCCI yet they let NCCI do what they do best, the result is a much better rate of premium for the Small Business Community.

In 2019, a 17.2% decrease in North Carolina Workers Compensation Insurance Premium will help small businesses all over the state prosper. This will be especially beneficial to the coastal communities who are recovering from Hurricane Florence.  No matter what is going on in your North Carolina Community if you own or operate a small business you will be paying less for workers compensation insurance in 2019. If you need help finding even better coverage or lower rates on premium, click here to start a quote with Workers Compensation Shop.com.  We have specialists waiting to take your call at 888-611-7467. They can help you get the best value for you small business.

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