Question: As an officer, how can I become exempt from my company’s Florida workers’ compensation policy?

You will need to file an exemption with the Workers’ Compensation Division of the Florida Department of Financial Services. In our workers’ compensation exemption forms page, we wrote more information about completing these forms and those eligible to be exempt. Here is how we explained this process:

An individual that is an officer of a corporation can elect to be exempt from workers’ compensation coverage. This will exclude the officer from recovering workers’ compensation benefits, but by doing so, the individual may remove their payroll from the total payroll that is used to compute the premium. Many employers choose to be exempt on their workers’ compensation policies to save money on their premium. If the individual meets the requirements for exemption from Florida workers’ compensation insurance, then they can file for exemption using the following forms:

Online Exemption Form

Download the Exemption Form

Download the Exemption Form Instructions

Download the Form to Revoke an Exemption

Question: What classification codes and workers’ compensation rates apply to employees in landscaping businesses?

In Florida, there are three classification codes that could apply to landscaping businesses depending on the type of landscaping work that is done. You can read more about these Florida workers’ compensation codes below:

0042 - This classification code is applied to businesses that are primarily engaged in installing landscapes. The classification includes planning, clearing, grading and planting necessary for landscaping operations. It also includes the installation of sod. The clearing and grading done by these insureds is of the fine type necessary for finishing operations and does not result in changes to the contour of the land. This classification cannot be used in Florida along with the class code 9102 unless the operations are conducted as a separate and distinct business. The Florida rate for this classification in 2007 was 10.67 and in 2008 it is now 8.70 dollars for every 100 dollars of remuneration.

9102 - This classification code is assigned to insureds engaged in the lawn maintenance business. Code 9102 is also applied to all employees engaged in the operation of public parks. For landscapers, the essential difference between the application of Code 0042 and Code 9102 is that Code 0042 applies to work involving new landscaping installations whereas Code 9102 applies to work involving the maintenance of existing landscaping and/or lawn maintenance. Insureds that perform maintenance of lawns, grounds, and gardens include work that may involve lawn mowing, raking, application of liquid or granular fertilizer, spraying and trimming of shrubs or small trees from the ground, and thatching or aerating. The Florida rate for this classification in 2007 was 5.84 and in 2008 it is now 4.86 dollars for every 100 dollars of remuneration.

0106 - This classification code is applied to employees and businesses that prune and trim trees from above the ground. This code is applicable by job site to tree pruning contracts requiring any above-ground level work and it also applies to the whole contract including, but not limited to, chipping and cleanup activities regardless of whether or not a separate contract is written for tree pruning or lawn maintenance and another contract is written for chipping or cleanup. Incidental tree removal on a developed site conducted in connection with tree pruning, spraying, and repairing operations is also assigned to Code 0106. This classification includes risks contracting exclusively to remove immediate tree hazards due to natural catastrophes. Tree hazard cleanup may involve removing dead trees; trees or branches that are leaning on trees, power lines, or other structures; trees with broken or cracked stems; or large, dead or broken limbs that are still attached to a tree. The Florida rate for this classification in 2007 was 21.23 and in 2008 it is now 15.96 dollars for every 100 dollars of remuneration.

5183 - This classification code is applied to employees and businesses that are engaged in plumbing work that is otherwise unclassified by the Basic Manual. For landscaperes, this code is used for installation of underground lawn sprinkler systems. Trenching work performed by the same contractor engaged in the installation of underground pipes for sprinkler systems is assigned to this classification since trenching work is an integral part of the underground sprinkler installation work. Such operations may be performed using either a vibrating plow or a pipe pulling machine, which knives the ground to a depth of 12 to 18 inches and to a width comparable to that of the piping being used. The piping is then automatically inserted into the ground. The Florida rate for this classification in 2007 was 8.13 and in 2008 it is now 6.75 dollars for every 100 dollars of remuneration.

The employees and operations of most landscaping businesses are classified into the codes listed above. Depending on the nature of work performed, other classification codes may apply to the business. If you would like more information about these classifications or information on how your own employees should be classified, please do not hesitate to contact our office or request a workers’ compensation quote online.

Question: What are the rates for the FWCJUA?

The FWCJUA, Florida Workers Compensation Joint Underwriting Association, is intended to be the last resort for businesses who are unable to secure workers’ compensation insurance in the voluntary marketplace. The rates for the FWCJUA are also much higher than those in the voluntary market. The standard Florida workers compensation classification and rating rules apply to FWCJUA policies with the exception that no premium discount or deductible credits will be applied. There is also a flat fee of $475 applicable to all new and renewal FWCJUA policies.

The FWCJUA has three different rating tiers, each with different surcharge amounts. In order to properly calculate the total estimated annual premium, you must determine the tier for which the Employer is eligible. All Tier rating premiums are surcharged above voluntary compariable premium and as of January 1st, 2008, the surcharges are:

• Tier1 - 83%
• Tier2 - 83%
• Tier3 - 134%

Tier 3 is an assessable rating tier. Employers qualifying for Tier 3 shall receive an assessable policy and shall be required to contribute on a pro-rata-earned-premium basis the money necessary to meet any assessment levied to cover any deficit attributable to Tier 3. Participants in Tier 3 may be assessed more than once, and any asessment may be made either while the Tier 3 policy is in effect or at any time after the termination, expiration or cancellation of the Tier 3 policy. Assessments levied against Tier 3 participants shall cover only the deficits attributable to Tier 3.

Question: What is the FWCJUA?

FWCJUA stands for the Florida Workers Compensation Joint Underwriters Association. Because workers’ compensation in Florida is mandatory for most businesses, there must be place for businesses to secure coverage when they are unable to find it in the marketplace.

Before there was an FWCJUA, the Florida Workers Compensation Insurance Plan (FWCIP) was the market of last resort. The Florida Department of Insurance had complete control over the operation of the FWCIP including operating rules and rates, and merely delegated day-to-day responsibilities to the NCCI (National Council on Compensation Insurance), as Plan Administrator. The FWCIP was not a self-funding plan, but rather was funded by insurance carriers licensed to write workers’ compensation insurance in Florida. In the mid-1980’s, premiums became insufficient to cover losses in the FWCIP and carrier assessments were levied. Because carriers funded the FWCIP on the basis of their voluntary market share, the result of more sizable FWCIP operating losses caused the voluntary market to shrink and forced businesses to find other alternatives to workers’ compensation insurance, such as self-insured funds. By the early 1990’s, 35% of Florida’s workers’ compensation market was in the FWCIP generating in excess of $200 million in underwriting losses. This was a large problem.

It led to Florida’s workers’ compensation reform in 1993, and the FWCJUA was established and designed as a self-funding plan to provide workers compensation and employer’s liability insurance to employers who are required by law to maintain such insurance and who are in good faith entitled to, but who are unable to purchase insurance through the voluntary market. As a result, employers insured within the FWCJUA pay premiums in excess of those paid in the voluntary market. From inception in 1994 through July 2003, there were three rating plans established for various classifications of risks and all employers were assigned to one of these three rating subplans either “A”, “B”, or “C” with Subplan “C” insureds receiving an assessable policy. In 2004, the Legislature created a three tier rating plan that based the insured’s premium on their experience and while capping the rates, the surcharges over manual rates were increased and provisions were made to ensure actuarially sound rates by January 2007. Any FWCJUA deficits will be funded through a Workers’ Compensation Trust Fund contingency reserve or through a below-the line assessment levied to all employers purchasing workers compensation insurance in Florida. The goal of the FWCJUA is to depopulate the Florida workers’ compensation residual market and invigorate the competitive or voluntary market.

Here are some important facts about the FWCJUA:

• The FWCJUA was designed to be self-supporting.
• Standard classification and rating rules apply.
• No premium discount or deductible credits apply to FWCJUA policies.
• A flat fee of $475 is applicable to all new and renewal FWCJUA policies.
• The FWCJUA has three different rating tiers, each with different surcharge amounts.  In order to properly calculate the total estimated annual premium, you must determine the tier for which the Employer is eligible.

Question: What have been some of the previous changes of workers’ compensation rates in Florida?

The rates in Florida are decided by the Workers’ Compensation Division of the Florida Department of Financial Services. Rate changes are researched by NCCI (National Council on Compensation Insurance) and are proposed to the Florida government. They then decide the rates based on losses reported from insurance companies in each classification code. Each class code has its own individual rate. Click here to read more about Florida workers’ compensation rates.

Below is a list of the average rate changes issued for Florida workers’ compensation insurance:

• January 1999 - 1.5% increase in rates
• January 2000 - 2.5% increase in rates
• January 2001 - No change
• January 2002 - 2.7% increase in rates
• April 2003 - 12.9% increase in rates
• October 2003 - 14.0% decrease in rates
• January 2005 - 5.2% decrease in rates
• January 2006 - 13.5% decrease in rates
• January 2007 - 15.7% decrease in rates
• January 2008 - 18.4% decrease in rates

The January 2008 reduction represented the 5th consecutive reduction in workers comp rates since 2003. Below are the cumulative rate reductions since October 2003 by industry group:

Cumulative      (10/1/03 - 1/1/08)

Manufacturing               - 47.6%
Contracting                     - 52.0%
Office and Clerical          - 50.8%
Goods and Services        - 51.5%
Miscellaneous                  - 53.0%

TOTAL                             - 51.4%

Prior to legislative reforms in 2003, Florida consistently ranked No. 1 or No. 2 in the country for the highest workers’ compensation rates; however, Florida has since dropped far out of the top 10 rankings. Florida businesses are now able to enjoy much lower workers’ compensation rates.

Question: What is the current workers’ compensation rate in Florida for clerical employees?

It depends on the classification code for the employees. Most clerical employees fall into the 8810 class code, but there are a few other classifications for clerical employees:

8803 - This classification code is assigned to traveling clerical-type employees of risks engaged in the business of providing accounting, auditing, office systemization, computer programming or related clerical services for their clients. Employees assigned to Code 8803 will be performing clerical work when they arrive at a client’s location but because of the combined exposure of traveling and clerical work, Code 8803 is assigned to their payrolls instead of other available clerical classifications. As Code 8803’s phraseology does not include “Clerical,” any non-traveling clerical office employees of risks providing the services described above for their clients are properly assigned to the appropriate clerical classification provided that these employees meet Basic Manual requirements for assignment of their payroll to the appropriate clerical class. This classification does not apply to traveling clerical employees of business concerns such as banks, manufacturers, chain stores, restaurants, hotels, gasoline stations, etc., who perform clerical duties at their temporary location. These traveling clerical employees, sometimes referred to as “internal auditors,” may travel to various branches and remain at these branches for a period of several days or weeks, auditing or monitoring procedures at these locations. These employees are not classified to Code 8803 because their employers are not in the business of providing auditing or accounting services for others; they are assigned to the appropriate clerical classification. The Florida rate for this classification in 2007 was 0.24 and in 2008 it is now 0.23 dollars for every 100 dollars of remuneration.

8820 - This classification code is all-inclusive for employees of attorneys or law offices. The employee exposure is principally inside office work; however, the scope includes outside exposure of trial attorneys and attorneys, paralegals and other employees involved in investigative work. In addition, insureds engaged in the business of providing court reporters who take depositions in law offices or other comparable locations and record legal proceedings have been assigned to Code 8820. The code is designed to be used for all employees of a business engaged in the above legal operations and this classification is not to be used with any other classification code unless the operations subject to Code 8820 are conducted as a separate and distinct business. Because of this, this classification is not intended to apply to “in-house” attorneys employed by business organizations. The Florida rate for this classification in 2007 was 0.36 and in 2008 it is now 0.29 dollars for every 100 dollars of remuneration.

8861 - This classification code is assigned to employees of institutions that provide charitable, welfare, or social services to mentally, physically, or emotionally challenged persons, troubled youth, children in crisis, abused persons, persons with financial and employment hardships, and other related people in need. Charitable, welfare, or social service organizations may offer these individuals sleeping accommodations, meals, on-site counseling, case management or client assessments, education, and/or habilitative and vocational training and employment. This classifcation is used for the clerical employees and includes administrators, counselors, executive directors, resource and referral specialists, and case managers who coordinate the services of a variety of organizations in the interest of an individual or family, volunteer coordinators, outside welfare workers, classroom teachers who teach or demonstrate in a classroom environment, and medical professionals such as physicians and nurses. Professional employees who drive clients to appointments less than 20% of the total time can be assigned to Code 8861. Otherwise, they must be assigned to Code 9110 if over 20% of their time is spent driving. The Florida rate for the 9110 classification in 2007 was 6.60 and in 2008 it is now 5.89, while the Florida rate for the 8861 classification in 2007 was 1.56 and in 2008 it is now 1.53 dollars for every 100 dollars of remuneration.

8871 - This classification code is assigned to telecommuter employees, which are those that perform clerical duties in a residence office and meet other conditions described in this classification. For purposes of Code 8871, a residence office is a clerical work area located within the home of the clerical employee and it must be separate and distinct from the location of the employer. In the event an employer operates a business from a residence and the employer has clerical staff at the employer’s business location residence, these clerical employees are classified to the 8810 classification listed below. The Florida rate for the 8871 classification in 2007 was 0.63 and in 2008 it is now 0.55 dollars for every 100 dollars of remuneration.

8810 - This classification code is assigned to clerical employees that are not otherwise classified in the Scopes Basic Manual. The duties of a clerical office employee include creation or maintenance of financial or other employer records, handling correspondence, computer composition, technical drafting, and telephone duties, including sales by phone. The clerical office classification continues to apply to a qualified clerical office employee who performs a duty outside of a qualified clerical office area when that duty does not involve direct supervision or physical labor and is directly related to that employee’s duties in the office. These duties do not exclude depositing funds at the bank, purchasing office supplies, and pickup or delivery of mail, provided they are incidental and directly related to that employee’s duties in the office. However, for purposes of this rule, the definition of clerical duties excludes outside sales or outside representatives; any work exposed to the operative hazards of the business; and any work, such as a stock or tally clerk, which is necessary, incidental, or related to any operations of the business other than a clerical office. Other employments or operations assigned by analogy to Code 8810 include bank tellers; telephone answering services; designers, proofreaders, and editors of newspaper publishers or magazine printers; employees performing computerized photographic composition or automated platemaking, which is used in the graphic arts industry as well as specialists engaged in such operations; drafting personnel of consulting engineering firms; clubs employing only clerical employees; horse and dog racetrack pari-mutuel clerks and cashiers; bus terminal ticket sellers; airline or helicopter ticket sellers and information clerks away from airport or heliport locations; and employees of highway toll roads confined to keeping books and records. The Florida rate for this classification in 2007 was 0.48 and in 2008 it is now 0.37 dollars for every 100 dollars of remuneration.

there are a couple of other related classification codes such as 7403 for air traffic controllers, 8814 for clerical railroad employees, 8832 for physicians and their clerical employees, 8800 for clerical mailing and addressing employees, and 8901 for clerical employees at telephone comanies. If you would like more information about any of these classifications or information on how your own employees should be classified for Florida workers’ compensation insurance, please do not hesitate to contact our office or request a workers’ compensation quote online.

Question: How is workers’ compensation premium calculated?

The premium paid for a workers’ compensation policy is based off of the employee payroll of the insured’s business. As discussed on the workers’ compensation policy page, there are a few steps in calculating the final premium:

1. First, the manual premium is calculated by multiplying the total remuneration (in $100 units) in each classification code by the current rate established by the state government for that class code. Any policy endorsements, such as waivers of subrogation, will be added to the manual premium. If there is a change in policy limits, then this effect in the premium is also added.

2. After the manual premium is computated, it is then mulitiplied by the experience modification rate. This has a tremendous effect on the overall workers’ compensation premium and it is important for business owners to understand their experience modifier and keep it as low as possible.

3. There are then three premium credits available to Florida businesses that are deducted from the current premium to get the modified premium for the policy. These three credits are the Safety Credit, the Drug Free Credit, and the FCCPAP.

4. There are three other adjustments made to the premium. These are the Premium Discount, Expense Constant ($200 in Florida), and the fee for terrorism. After these three adjustments have been made to the premium, the remaining figure is known as the “Total Estimated Annual Premium”. This is the premium amount that is actually billed to the employer throughout the policy year.

5. Each workers’ compensation insurance policy will be audited to determine the actual payroll during the policy period and the final adjustments will be made to the premium. If the employer has a higher remuneration than anticipated at the beginning of the year, then there will be an increase in the premium during the audit. It is important as a business to keep track of any payroll changes during the policy year to avoid this situation.

6. Some insurance carriers offer incentives to attract larger employers and keep claims down during the policy year, such as dividend plans, retrospective plans, and retention dividend plans. These are designed to return premium to employers that have controlled their losses during the policy period.

Question: What classification codes and workers’ compensation rates apply to employees at my jewelry business?

There are two classification codes that could apply to your jewelry business depending on the nature of your business. You can read more about these Florida workers’ compensation codes below:

8013 - This classification code applies to jewelry stores, whether wholesale or retail or a combination of both. These stores are principally engaged in selling precious or costume jewelry, such as necklaces, earrings, bracelets, rings, watches, charms, lockets, pendants, brooches, and similar ornamental items intended for personal adornment, whether made of metals or other materials. In addition to jewelry, this classification includes the minor and incidental handling of miscellaneous non-jewelry merchandise, such as silverware, tableware, clocks, chinaware, glassware, trophies, small electrical appliances, giftware and leather goods. Risks engaged in cutting or polishing precious stones, such as diamonds, emeralds, rubies, and sapphires, are included within the scope of this classification along with the repair or engraving of jewelry and precious stone setting when performed by a retail jewelry store for individual customers. The Florida rate for this classification in 2007 was 0.85 and in 2008 it is now 0.79 dollars for every 100 dollars of remuneration.

3383 - This classification code is assigned to insureds engaged in the manufacture of jewelry such as rings, bracelets, earrings and other jewelry of precious metals with or without precious stones and mountings for precious stones. Precious and non-precious metals, precious and semiprecious stones, plating solutions, enamel and lacquer are received from others. The operations may include melting, pouring and rolling of the metal, or such operations may start with sheet stock. Further operations involve blanking, forming, drilling, assembling, buffing and polishing. Some articles are plated, enameled or lacquered. Stones may be set in the finished mountings. It also includes businesses engaged in the manufaturing of watch cases, gold leaf in booklets, silverware such as silver or silver-plated flat and hollowware, picture frames, ornaments and novelties, and metal musical instruments such as cornets, trombones, French horns, bass horns, and others. The Florida rate for this classification in 2007 was 1.91 and in 2008 it is now 1.51 dollars for every 100 dollars of remuneration.

If you would like more information about either of these classifications or information on how your own employees should be classified, please do not hesitate to contact our office or request a workers’ compensation quote online.

Question: What classification codes and workers’ compensation rates apply to employees at restaurants?

There are four main classification codes used to categorize restaurant employees for workers’ compensation exposures in Florida. Caterers can be assigned to the appropriate restaurant classification based on the nature of their operations and depending on which classification they are most similar to when they serve the food at the client’s location.

9058 - This classification code is applied to all restaurant employees under the direct management of hotels, motels, motor courts and tourist courts or cabins. A restaurant that is operated by an insured who is not involved in the above-mentioned businesses is classified to the appropriate restaurant classification listed below, even if the restaurant may be located on the premises of a hotel, motel, etc. Restaurant operations are a normal adjunct to these establishments and they usually cater to the general public as well as guests of their facilities. Employees engaged in food and beverage preparation and service at apartment hotels, dude ranches and rooming or boarding houses also fall within the scope of this classification. This classification also includes musicians or entertainers, hostesses, bartenders, waiters, waitresses, cashiers, cooks, busboys, dishwashers and restaurant managers. The Florida rate for this classification in 2007 was 3.02 and in 2008 it is now 2.60 dollars for every 100 dollars of remuneration.

9084 - This classification applies to restaurants that have more than 50% of their revenues coming from the sale of alcoholic beverages such as beer, liquor or wine. It is used for bars, discotheques, lounges, nightclubs and taverns. The payroll should include musicians or entertainers employed by these establishments when these musicians or entertainers are considered employees for workers compensation purposes. Employees of a Code 9084 risk may engage in the preparation and service of alcoholic drinks such as liquor, beer or wine intended for consumption on the premises. These employees may also prepare and serve hors d’oeuvres, light snacks and, in some cases, complete dinners. Patrons of this type of restaurant are generally expected to give wait staff a gratuity based on quality of service rendered. The Florida rate for this classification in 2007 was 4.22 and in 2008 it is now 3.35 dollars for every 100 dollars of remuneration.

9083 - This classification code is applicable to fast food restaurants including, but not limited, to pizza parlors, sandwich shops, concession stands, and hamburger, taco or fried chicken restaurants. For purposes of this classification, fast food restaurants are defined as establishments that prepare and serve food and beverages for consumption on or off premises. Fast food restaurants offer limited menus, which usually include items such as sandwiches, side dishes such as French fries, and soft drinks. The customer will enter the restaurant, proceed to a counter and place an order. The completed order is handed to the customer, who will pay for same. The customer may then leave the restaurant with the order or seek out his/her own table. After completion of the meal, many fast food restaurant customers will clean up their own tables and deposit their litter in designated receptacles. Patrons of this type of restaurant are generally not expected to leave a gratuity. Code 9083 is not applicable to a full service restaurant that employs wait staff. It is recognized that fast food restaurants will, on an occasional or accommodation basis, provide wait service. An occasional or accommodation basis may include the offering of wait service for customers that have limited capacities to obtain their own counter service or offering wait service for groups that request this service for an occasion such as a meeting or birthday party. Caterers contemplated by Code 9083 include caterers that prepare sandwiches for box lunches and other similar services. These foods will be sent to customers or taken to various plants or office buildings for sale to employees of such concerns. The dispensing of food, drinks, candy, etc., at ballparks, race tracks, boxing arenas and theaters by independent concessionaires also is assigned to Code 9083 provided that the requirements regarding wait service are met. The Florida rate for this classification in 2007 was 3.30 and in 2008 it is now 2.81 dollars for every 100 dollars of remuneration.

9082 - This classification code contemplates the “traditional” restaurant that provides wait service. Customers in this type of establishment may either select their own table or be escorted to a table by a restaurant employee. The customer will place an order with a member of the wait staff. This employee in turn places the order with kitchen staff, who will prepare same. The food is delivered to the customer by wait staff, who remain available to assist the customer throughout the course of the meal. Patrons of this type of restaurant are generally expected to give wait staff a gratuity based on quality of service rendered. Code 9082 operations are also designated as “not otherwise classified” (NOC). Restaurant businesses should be placed in Code 9082 only when no other classification more specifically describes the insured’s operations. The Florida rate for this classification in 2007 was 4.25 and in 2008 it is now 3.13 dollars for every 100 dollars of remuneration.

If you would like more information about any of these classifications or information on how your own employees should be classified, please do not hesitate to contact our office or request a workers’ compensation quote online.

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.