You may be wondering what NCCI stands for and what this increase in rates means for you and your business. NCCI (National Council on Compensation Insurance), has filed a proposed workers comp rate increase of 17.1% with the Office of Insurance Regulation (OIR). If the OIR approves this request, the rate increase on August 1, 2016.
As for existing polices, the rate increase will apply on a pro-rata basis from August 1st through the remainder of the policy term.
The 17.1% increase is an all-inclusive, flat increase which will be applied to each class code.
This means your monthly premium will increase by 17.1% for each class code covered under your workers comp policy.
Why did the NCCI propose this increase in rates?
Here’s a quick re-cap of what happened a few years ago: The Florida Supreme Court created a law that capped claimant attorney fees in workers comp cases. However, on April 28, 2016, the fee schedule was found to be unconstitutional under FL and US Constitution as violation of due process.
In addition, the Florida Supreme court issued a ruling in the two-year pending case, Westphal vs. City of St. Petersburg. The court ruled the 104-week limit on temporary disability benefits paid to injured workers is also unconstitutional. As a result the cap for indemnity benefits is now 260 weeks.
What are indeminty benefits?
Wages that are paid to workers unable to work due to injury.
In consideration of the Westphal ruling, NCCI will file an amended rate request in the upcoming weeks. Unfortunately, they may be requesting a rate increase in addition to the +17.1%.