Based on two recent decisions by the Florida Supreme Court which declared portions of Florida's Work Comp laws unconstitutional, the National Council on Compensation Insurance (NCCI), has requested a 19.6% rate increase to be applied to new and renewal Work Comp policies effective October 1, 2016.
On April 28, in the case of Castellanos vs Next Door Company et al, the Court declared unconstitutional the section of the law that placed statutory caps on claimant attorney fees.
Then on June 9, in Bradley Westphal vs City of St Petersburg, the Court declared the 104 week limitation on temporary disability benefits was also unconstitutional. This ruling will result in a new limitation of 260 weeks- a 2 and 1/2 times increase in temporary disability benefits (temporary total disability and/or temporary partial disability).
This nearly 20% increase will rank Florida as the highest work comp rates in the Southeast Region of the United States. In addition these rulings will be retroactive to any open claims prior to the October 1, 2016 rate increase, so will create a giant unfunded liability to the Workers Comp system- some estimate as high as $714 million.
What is the impact on your Florida business? Divide your premium by 5 and then add that result to your annual premium. For example if you are paying $5,000 annually in work comp, you would add a thousand dollars to your premium and you'll have a pretty good idea of the impact of these rulings. ($5,000/5=$1000. $5,000 + $1,000=$6,000).
It's more important than ever to be proactive with your Workers Compensation.
- Shop for every discount
- Do a Safety Audit at your workplace to minimize injuries
- Pay attention to workers injuries- have them seen by a doctor as soon as possible.
- As always, if you're interested in getting a quote,
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