Question: What is the fee for terrorism on my Florida workers’ compensation policy?

The fee on your policy is approved by the state of Florida. Since the terrorist attacks of September 11, 2001 workers compensation insurers have been taking a closer look at their exposures to catastrophes, both natural and man-made. Workers compensation claims for terrorism could cost an insurer anywhere from $300,000 to $1 million per employee, depending on the state. As a result, firms with a concentration of employees in a single building in major metropolitan areas such as Miami or near a “trophy building” are now considered high risk, a classification that used to apply only to people in dangerous jobs such as roofing. Florida allowed a mandatory fee for terrorism to be added to all workers’ compensation policies. The fee is based on payroll and the rate of 0.03 per $100 units of remuneration is added to the policy premium after the manual premium, experience mod, and safety credits have been applied. Please clich here for more information on computing worker’s compensation premiums in Florida.

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