What is the Average Cost of Workers’ Comp Per Employee in Florida?

For Florida businesses with Workers’ Compensation insurance coverage, it’s important to learn the average cost per employee and what goes into determining that price. Otherwise, your company may end up paying too much for Workers’ Compensation insurance.

It can be difficult to determine the average cost of Workers’ Compensation insurance per employee in Florida because so many factors are at play. That being said, companies can determine the cost of coverage per employee based on their payroll and Workers’ Compensation insurance rate. Generally, these two things, and a business’ history of claims, will affect the cost of Workers’ Compensation insurance per employee in Florida. If you think your Florida premiums are too high, hire a broker to help you contest your classification, apply for an exemption, or find more affordable insurance.

Our Florida brokers are here to help business owners find affordable Workers’ Compensation insurance that will protect their employees and themselves. To learn more about the Florida Workers’ Compensation insurance brokers at NPN Brokers, call today at (561) 990-3022.

How Much Does Workers’ Comp Insurance Cost Per Employee in Florida?

For many Florida employers, learning the average cost of Workers’ Compensation insurance per employee can help determine whether their premiums are too high. Comparing your premiums with the average cost per employee can help you learn whether or not you’re paying too much for Workers’ Compensation insurance.

Because Florida has specific classifications for businesses, and because several factors go into determining the cost of insurance for individual companies, it can be challenging to ascertain the average cost of Workers’ Compensation insurance per employee. That being said, businesses can calculate the cost per employee for their own company using a simple formula.

The first step in determining the cost of Workers’ Compensation insurance per Florida employee is dividing your annual payroll by 100. Essentially, your annual payroll is the total amount paid to all employees covered by Workers’ Compensation insurance per year. Once you’ve done that, multiply your result by your Workers’ Compensation rate. Your Workers’ Compensation rate is the cost of insurance per $100 in payroll for your specific industry.

While calculating the cost per employee may seem simple at first, it can get confusing. That’s why it’s important to partner with a skilled Florida small business Workers’ Compensation insurance broker. Your broker can help you assess premiums by calculating the cost per employee to ensure that your Florida business isn’t paying too much.

What Affects the Cost of Workers’ Comp Insurance Per Employee in Florida?

In Florida, the cost of Workers’ Compensation per employee can rise, depending on a company’s payroll or industry. For example, suppose your Florida business is in a high-risk industry and employs many workers. In that case, your company may be more likely to face costlier Workers’ Compensation insurance.

Payroll

The more workers your Florida business employs, the higher its Workers’ Compensation insurance will cost per employee. That’s because there’s a higher risk of insuring your company. With more employees, the greater chance your business has of a workplace injury. Generally, Workers’ Compensation insurance carriers assess this by looking at your Florida business’ gross annual payroll.

Industry

One of the biggest factors in assessing cost per employee for Florida Workers’ Compensation insurance is industry. In Florida, businesses are given a classification code based on their industry. These codes carry different insurance rates, reflecting an industry’s risk levels. For example, Florida construction companies have higher Workers’ Compensation insurance rates than jewelry stores. That’s because there’s a higher risk of employee injuries on a construction site. Your assigned classification code will significantly impact the cost of Workers’ Compensation insurance per employee in Florida.

History

Suppose your Florida business has a history of work-related injuries. In that case, it may pay a higher cost of Workers’ Compensation insurance per employee. This often happens because insurance companies view your business as a risk to insure. Unfortunately for many Florida businesses with claims histories, like construction companies, this can result in high premiums. If your business has a history of work-related injuries, speak with a Florida Workers’ Compensation insurance broker. Despite your history, you may still be able to find great coverage at an affordable cost per employee.

How to Lower the Cost of Workers’ Comp Insurance Per Employee in Florida

Suppose the cost of Workers’ Compensation insurance per employee is too high for your Florida business. In that case, you may feel at a loss. Luckily, our Florida Workers’ Compensation insurance brokers have some helpful tips business owners can use to lower the cost of insurance per employee while still protecting their companies from liability in the event of a workplace injury.

Contest Your Classification

When seeking to lower the cost of Workers’ Compensation insurance per employee for your Florida business, think about what you can change. Unfortunately, it’s unlikely that you will be able to change your business classification. That being said, Florida companies can contest a classification they believe to be unfair. Florida uses the National Council on Compensation Insurance’s (NCCI) criteria to classify businesses. To contest your company’s classification code, you must contact the NCCI. If your petition to change your Florida business’ classification code is successful, you may lower its Workers’ Compensation insurance rate.

File for an Exemption

If you want to lower the cost of Workers’ Compensation insurance per employee, consider lowering your payroll. One way to reduce your annual payroll is to file for an exemption. In Florida, LLC members and corporation owners can file for a Workers’ Compensation insurance exemption for themselves. While that means exempt individuals won’t be eligible for benefits if they sustain an injury at work, they will reduce their company’s annual payroll.

Hire a Broker

One of the best ways to reduce the cost of Workers’ Compensation insurance per employee is hiring an experienced professional. A skilled Florida Workers’ Compensation insurance broker can pair your business with affordable coverage that still protects it from liability if an employee is injured on the job. Your broker can find Workers’ Compensation insurance that reflects your Florida business’ needs at a lower cost per employee.

Call Our Florida Brokers to Find Affordable Workers’ Comp Insurance Today

Having reliable Workers’ Compensation coverage is crucial for Florida businesses. To learn more about the Florida Workers’ Compensation insurance brokers at NPN Brokers, call today at (561) 990-3022.