What is workers’ compensation?

Workers ’ compensation provides medical benefits and wage replacement to employees injured on the job. Not all businesses are required to provide workers’ compensation, depending on the classification of the business and number of employees.

Workers’ compensation rates and coverage requirements are mandated by the state and are determined based on the classification of business and number of employees. There are hundreds of classifications of business. Individual job positions can be classed separately. More dangerous jobs are rated higher; for example, a roofing company’s classification would be more costly than a telemarketing business’s classification. The National Council on Compensation Insurance is responsible for the compensation codes. Rates are determined per $100 of payroll.

Depending on the type of business, various premium adjustment or credit programs may be available:

Contracting Classification Premium Adjustment Program – credit may be applied based on the class codes.

Drug-free Workplace Credit Program- Submission of a Drug-free Workplace application is required to receive credit and must be resubmitted each year.
Employer Safety Premium Credit Program- Application for Employer Workplace Safety Program must be submitted to receive credit, and re-submitted each year there after.

Florida Hurricane Deductibles 101

Since Florida often experiences a greater number of hurricanes than other states, the hurricane deductible on Florida homeowner’s insurance policies differs from most other states. On a Florida homeowner’s insurance policy there are two separate types of deductibles: one for hurricane damage and one for all other perils, which may include but is not limited to fire, theft, vandalism, etc.

A deductible is defined as the amount of money a policy holder pays before their insurance begins to pay out. Hurricane deductibles apply when a named hurricane causes wind damage to your dwelling.

Hurricane deductibles are determined based on the total insured amount of your dwelling, and are generally 2% of the dwelling coverage amount. Homeowners can elect to increase deductibles to 5 or 10 percent of the dwelling coverage, which will lower the annual premium. A common misconception among many homeowners, is that the 2% deductible is based on the cost of the damage; however keep in mind that the percentage applies to the total dwelling amount.

Florida homeowners insurance is unique in how the hurricane deductible applies. For example, if you experience more than one hurricane loss within the same calendar year, the first claim would have the percentage hurricane deductible applied. For any subsequent hurricane loss(es) within that same calendar year, the lower deductible would apply.

For this reason, you are encouraged to report all windstorm related damage as it occurs.

To confirm the amount of your deductible please review the declaration page of your insurance policy or contact your insurance agent.