How Much is Workers' Compensation in Florida?

Determining how much workers' comp is in Florida isn't a one-size-fits-all answer—it varies depending on the type of industry, the size of your company’s payroll, and your claims history. 

Here’s a formula you can use to get a basic estimate of your premium: 

Annual employee payroll divided by $100 x industry rate = your premium

Each industry in Florida is assigned a specific rate by the state. Begin by finding your industry rate on the FWCJUA website. 

Once you have your industry rate, calculate your company’s annual gross projected payroll, divide that number by $100, and then multiply by your industry rate. 

Example: Let's say you operate an electrical business in Florida and employ two electricians with a combined annual payroll of $100,000. To estimate your workers' comp costs, you would first divide the total payroll by $100, to get 1,000.  Next, multiply this number by Florida’s rate for electricians, which is $3.23. This calculation (1,000 x $3.23) gives you an estimated annual premium of $3,230.

Note: 

This figure is just a starting point. Your final premium will include additional taxes and fees and may be adjusted based on your company's claims history.  

If manual calculations aren't your thing, no worries! We've got a handy form that'll crunch the numbers for you. Get started here.

Now, let's delve deeper into the specifics of how these rates are determined.

How are Florida Workers’ Compensation Rates set? 

Florida's workers' compensation insurance rates are set by the National Council on Compensation Insurance (NCCI). These rates are based on job classifications, associated risks, and past claims data. Rates are typically quoted per $100 of the employer's payroll.

For example, in 2024, clerical workers in Florida, who typically represent one of the lowest risk categories, have a workers' compensation rate of $0.13 for every $100 of payroll. This means that for a secretary or administrative assistant with an average annual salary of $40,180, the cost of workers' compensation insurance would be approximately $52 per year. 

On the other hand, roofing workers in Florida, who face much greater risks on the job, have a rate of $8.24 per $100 of payroll, which equates to an annual cost of approximately $3,491 for a worker with an average salary of $42,370.

Below is a chart showing the average workers’ comp premiums for various industries in Florida for 2024. Please note that these figures are estimates based on average salaries and standard rates. The actual cost of workers' compensation for your business could be higher or lower, depending on your specific circumstances, including your company's claims history and any additional factors that insurers consider. 

Watch this video to learn more about calculating your workers’ comp rate.  

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Recent Changes to Florida's Workers' Compensation Rates

Florida businesses experienced a favorable development when the state approved a 15.1% decrease in workers' compensation rates for 2024. This reduction applies to both new and renewal policies starting January 1, 2024. It reflects the broader trend toward lower insurance costs for employers and comes thanks to fewer claims, safer workplaces, and legislative reforms affecting the workers' compensation system.

How can Florida businesses keep costs down?

Employers can manage their workers' compensation costs through several strategies:

Safety Programs: Implementing safety training can reduce workplace injuries, thus lowering the Ex-Mod and insurance premiums over time.

Return-to-Work Programs: Facilitating the return of injured workers to work, even in a limited capacity, can help to minimize the cost of claims.

Regular Payroll Audits: Accurate payroll reporting ensures that you are not overpaying for insurance coverage.

Comparative Shopping: It's beneficial to compare rates from different insurers to  find the best deal for your business needs.

Securing your Savings and Coverage with Kickstand Insurance 

With the recent dip in workers' compensation rates in Florida, it's the perfect time for businesses to reassess their coverage needs. At Kickstand Insurance, we're dedicated to partnering with you every step of the way.

Our approach is straightforward yet thorough: we work tirelessly to ensure you benefit from the most comprehensive coverage at the most affordable rates. 

Ready to take the first step? Our instant quote process is designed to be quick and easy. Fill it out here to start the journey toward better coverage and savings. 

With Kickstand Insurance, you're not just getting a policy; you're gaining a trusted ally who will stand by you, ensuring that when it comes to workers' comp, you're as protected as can be. Let's make sure your insurance works as hard as you do.