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 types of businesses are classified as in the construction industry for the purpose of Florida workers’ compensation insurance?

We often receive this question. In the definition of businesses required to carry Florida workers’ compensation insurance, there is a distinction in the requirement for workers’ compensation insurance between businesses in construction and those that are not. For administration purposes the definition of “construction industry” in the Florida Statutes means those employers whose operations include and/or are best described by the classifications codes listed below. The descriptions for classifications are included in the workers compensation rating manual approved for use in Florida. Please note that these employers shall be considered in the “construction industry” whether or not they are currently engaged in any of the operations described by the applicable classifications and the classifications also contemplate employers that may potentially engage in such operations. The classification codes listed below should serve only as a guideline to provide direction for properly assigning employers to the “construction industry” and the Department of Labor and Employment Security is responsible for making all determinations of compliance with Florida statutes by individual employers whether or not in the classifications below:

• 0042 Landscape Gardening and Drivers
• 0050 Farm Machinery Operation – By Contractor and Drivers
• 1322 Oil or Gas Well: Cleaning or Swabbing of Old Wells Having Previously Produced Gas or Oil – By Contractor – No Drilling – and Drivers
• 3365 Welding or Cutting NOC and Drivers
• 3719 Oil Still Erection or Repair
• 3724 Machinery or Equipment Erection or Repair NOC and Drivers
• 3726 Boiler Installation or Repair – Steam
• 5020 Ceiling Installation – Suspended Acoustical Grid Type
• 5022 Masonry NOC
• 5037 Painting: Metal Structures – Over Two Stories in Height – and Drivers
• 5040 Iron or Steel: Erection – Frame Structures
• 5057 Iron or Steel: Erection NOC
• 5059 Iron or Steel: Erection – Frame Structures Not Over Two Stories in Height
• 5069 Iron or Steel: Erection – Construction of Dwellings Not Over Two Stories in Height
• 5102 Door, Door Frame or Sash Erection – Metal or Metal Covered
• 5146 Furniture or Fixtures Installation – Portable – NOC
• 5160 Elevator Erection or Repair
• 5183 Plumbing NOC and Drivers
• 5188 Automatic Sprinkler Installation and Drivers
• 5190 Electrical Wiring – Within Buildings and Drivers
• 5213 Concrete Construction NOC
• 5215 Concrete Work – Incidental to the Construction of Private Residence
• 5221 Concrete or Cement Work – Floors, Driveways, Yards, and Sidewalks – and Drivers
• 5222 Concrete Construction in Connection with Bridges or Culverts
• 5223 Swimming Pool Construction – Not Iron or Steel – and Drivers
• 5348 Stone, Mosaic or Terrazzo or Ceramic Tile Work – Inside
• 5402 Hothouse Erection – All Operations
• 5403 Carpentry NOC
• 5437 Carpentry – Installation of Cabinet Work or Interior Trim
• 5443 Lathing and Drivers
• 5445 Wallboard Installation Within Buildings and Drivers
• 5462 Glazier – Away From Shop and Drivers
• 5472 Asbestos Contractor – Pipe and Boiler Work Exclusively and Drivers
• 5473 Asbestos Contractor – NOC and Drivers
• 5474 Painting or Paperhanging NOC and Shop Operations, Drivers
• 5478 Carpet, Linoleum, Vinyl, Asphalt, or Rubber Floor Tile Installation
• 5479 Insulation Work NOC and Drivers
• 5480 Plastering NOC and Drivers
• 5491 Paperhanging and Drivers
• 5506 Street or Road Construction: Paving or Repaving and Drivers
• 5507 Street or Road Construction: Subsurface Work and Drivers
• 5508 Street or Road Construction: Rock Excavation and Drivers
• 5509 Street or Road Maintenance: County or State Department – and Drivers
• 5536 Heating and Air Conditioning Duct Work – Shop and Outside – and Drivers
• 5538 Sheet Metal Work – Shop and Outside – NOC and Drivers
• 5551 Roofing – All Kinds and Yard Employees, Drivers
• 5606 Contractor – Executive Supervisor or Construction Superintendent
• 5610 Cleaner – Debris Removal
• 5613 Cleaner – Debris Removal – Temporary Labor Service
• 5645 Carpentry – Detached One or Two Family Dwellings
• 5651 Carpentry – Dwellings – Three Stories or Less
• 5703 Building Raising or Moving and Drivers
• 5705 Salvage Operation – No Wrecking or Any Structural Operations
• 6003 Pile Driving
• 6005 Jetty or Breakwater Construction – All Operations to Completion and Drivers
• 6017 Dam or Lock Construction: Concrete Work – All Operations
• 6018 Dam or Lock Construction: Earth Moving or Placing – All Operations
• 6045 Levee Construction – All Operations to Completion and Drivers
• 6204 Drilling NOC and Drivers
• 6206 Oil or Gas Well: Cementing and Drivers
• 6213 Oil or Gas Well: Specialty Tool Operation NOC – By Contractor – All Employees and Drivers
• 6214 Oil or Gas Well: Perforating of Casing – All Employees and Drivers
• 6216 Oil or Gas Lease Work NOC – By Contractor and Drivers
• 6217 Excavation and Drivers
• 6229 Irrigation or Draining System Construction and Drivers
• 6233 Oil or Gas Pipeline Construction and Drivers
• 6235 Oil or Gas Well: Drilling or Redrilling and Drivers
• 6236 Oil or Gas Well: Installation or Recovery of Casing and Drivers
• 6237 Oil or Gas Well: Instrument Logging or Survey Work and Drivers
• 6251 Tunneling – Not Pneumatic – All Operations
• 6252 Shaft Sinking – All Operations
• 6260 Tunneling – Pneumatic – All Operations
• 6306 Sewer Construction – All Operations and Drivers
• 6319 Gas Main or Connection Construction and Drivers
• 6325 Conduit Construction – For Cable or Wires – and Drivers
• 6400 Fence Erection – Metal
• 7538 Electric Light or Power Line Construction and Drivers
• 7601 Telephone, Telegraph or Fire Alarm Construction and Drivers
• 7605 Burglar Alarm Installation or Repair and Drivers
• 7611 Telephone or Cable TV Line Installation – Contractors, Underground and Drivers
• 7612 Telephone or Cable TV Line Installation – Contractors, Overhead, and Drivers
• 7613 Telephone or Cable TV Line Installation – Contractors, Service Lines and Connections and Drivers
• 7855 Railroad Construction: Laying or Relaying of Tracks or Maintenance of Way by Contractor – No Work on Elevated Railroads – and Drivers
• 8227 Construction or Erection – Permanent Yard
• 9534 Mobile Crane and Hoisting Service Contractors – NOC – All Operations – Including Yard Employees and Drivers
• 9554 Sign Installation, Maintenance, Repair, Removal, or Replacement NOC & Drivers

Question: When did Florida first pass the workers’ compensation law?

Florida moved slower than other states in enacting a workers’ compensation law primarily because Florida had a smaller work force, virtually no manufacturing, and no major problems until the “Great Depression” of the 1930’s. During the depression, Florida started an aggressive campaign to attract business to the warmer, more economical climate. A “workmen’s” compensation law was necessary to meet the demands of the increased employment in the state and also helped to attract other businesses to move their operations to Florida. Prospective employers knew that they would be open to lawsuits from workers injured on the job and desired the “great trade-off” available with workers’ compensation insurance. Lawsuits were also on the rise and workers demanded protection. Governor David Sholtz recognized the necessity for this legislation and this new law was signed May 23,1935 as House Bill 29. Click here for more information on the history of workers’ compensation insurance in Florida.

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: What causes most of the workers’ compensation injuries for employees in restaurant businesses?

I don’t have the exact loss history, but in restaurants, the far majority of injuries are from slip and falls. Many other injuries also come from cuts, burns, and lifting, along with interactions with customers. To reduce injuries, a good approach is always to establish a formal safety program and make sure that employees are well-trained, incentived to do their best, and have clear directions.

Click here for more information on how restaurant employees should be classified on Florida workers’ compensation insurance.

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.