Question: What classification codes are eligible for the FCCPAP credit?

The Florida Contracting Classification Premium Adjustment Program (FCCPAP) is applicable to qualifying employers engaged in contracting operations. Those operations are defined by businesses that have employees in the contracting classification codes listed below:

• 0042
• 0050
• 1322
• 3365
• 3719
• 3724
• 3726
• 5020
• 5022
• 5037
• 5040
• 5057
• 5059
• 5069
• 5102
• 5146
• 5160
• 5183
• 5188
• 5190
• 5213
• 5215
• 5221
• 5222
• 5223
• 5348
• 5402
• 5403
• 5437
• 5443
• 5445
• 5462
• 5472
• 5473
• 5474
• 5478
• 5479
• 5480
• 5491
• 5506
• 5507
• 5508
• 5509
• 5537
• 5538
• 5551
• 5606
• 5610
• 5613
• 5645
• 5651
• 5703
• 5705
• 6004
• 6006F
• 6017
• 6018
• 6045
• 6204
• 6206
• 6213
• 6214
• 6216
• 6217
• 6229
• 6233
• 6235
• 6236
• 6237
• 6251
• 6252
• 6260
• 6306
• 6319
• 6325
• 6400
• 7538
• 7601
• 7605
• 7611
• 7612
• 7613
• 7855
• 8227
• 9534
• 9554

If your business has employees on your workers’ compensation policy that are in any of these classification codes, please feel free to contact our office for information setting up your FCCPAP credit. We look forward to working with your business to ensure that you are not overpaying on your workers’ compensation premium. Click here for more information about the Florida Contracting Classification Premium Adjustment Program.

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: How did I get the premium discount on my workers compensation policy?

The premium discount is a factor allowed by the Florida government to lower the cost of larger workers compensation premiums. The discount was created to reflect the lower expenses incurred by the insurance carrier for handling large insureds. The premium discount factor varies for the size of the account and it is allowed on policies with a premium that exceeds $5,000.

Question: Will establishing a safety program save me money on my insurance premiums?

Yes, If you set up a writeen safety program, you may be eligible for a 2 percent premium credit from your insurance carrier on your workers’ compensation insurance premium. In addition to the premium credit, having a Safety Program will make your workplace safer, which may result in fewer accidents and therefore reduce your future workers’ compensation costs. Click here for more information on the Safety Program Premium Credit.

Question: Will becoming a drug free workplace save me money on my insurance premiums?

Yes, If you implement a drug free workplace program in accordance with the criteria set forth in s440.102 of the Florida Statutes, you may be eligible for a 5 percent premium credit from your insurance carrier on your workers’ compensation insurance premium. In addition to the premium credit, having a Drug Free Workplace Program may make your workplace safer, resulting in fewer accidents, which may reduce your workers’ compensation costs. Click here for more information on the Drug Free Workplace Premium Credit.