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How Much Does Workers Compensation Cost?

Your Workers Compensation premium calculation is directly related to the risks associated with your specific operation, your company’s payroll, and your company’s loss history (claims).  A tree care company’s rate will be significantly higher than a retail store’s rate.  This is due to the higher likelihood of employee injury.  Additionally, your company’s prior claims are reviewed and compared to similar companies. A factor called your Experience Modifier is created to penalize or reward you by increasing or decreasing your premium. Without workers compensation insurance, your business could face penalties.

We have developed the Florida Workers Compensation Premium Estimator – think of it as a workers’ compensation insurance cost calculator. It is designed to help you better understand your Workers Compensation premium. It is a workers compensation insurance cost calculator that operates by learning the factors that go into the calculation and how you can begin saving your company money.  Biscayne Risk & Insurance is always available to discuss strategies to reduce your premium.

A Simplified Workers’ Compensation Premium Calculation*

How Much Does Workers Comp Cost in Florida?

If you’ve ever asked yourself ‘How much is workers comp in Florida?’, you first need to understand that Florida Workers Compensation insurance premiums are calculated by multiplying the insured employer’s payroll by the rate promulgated by the National Council on Compensation Insurance (NCCI).  The rate corresponds to a job-specific class code and is multiplied to each $100 in remuneration.

​For Example, the Fast Food Restaurant classification (9083) maintained a rate of $1.87 per $100 in payroll. If the estimated payroll was $500,000, the manual premium would be calculated at $9,350, subject to additional factors. We regularly maintain an up-to-date list of workers comp rates Florida.

What Is the Florida Workers Compensation Fee Schedule?

The fee schedule outlines the maximum amount that can be paid for medical services that are covered by workers compensation in Florida. A provider can charge less than the amount offered and they can also charge a larger amount once they prove that the added costs are needed. The reimbursement process pairs with the fee schedule in that it details a schedule with over 200 pages of codes that doctors must abide by. Providers agree to work within these limits when treating workplace injury victims.

Experience Mod

An Experience Modification Rate is a factor that was developed to compare an insured employer’s actual past loss experience and the expected loss experience of similar companies.  Once calculated by the NCCI, an employer’s Experience Modification Rate is multiplied by the manual premium to tailor the premium cost to the individual employer and provide an incentive for loss reduction that would be absent from manual rating alone.  An Experience Modification of greater than 1.0 would be worse than average, while a rate lower than 1.0 would be better than average. 

​Using the example above, if the restaurant with the manual premium of $9,350 had a mod of 0.90, then their premium would be reduced by 10%, and calculated at $8,415, subject to additional taxes and fees.

Policy Credits

There are opportunities for employers to reduce their premiums through available policy credits. The Drug-Free Workplace credit affords a 5% premium credit after satisfying the requirements of the program. Florida employers implementing a qualified Safety Program are eligible for a 2% premium credit.  

​Following on the prior example. If an insured earns a 5% Drug-Free Workplace credit, the premium would be reduced to approx $7,994.


Following the policy period, the insurance company may examine the books of the insured employer to compare the estimated annual payroll, projected prior to the policy term, to the actual payroll.  The Workers Compensation carrier may perform the audit in-person or remotely, via phone, mail, or internet.

If the above-referenced restaurant projected $500,000 in payroll but actually paid its employees $550,000, there would be an audit additional premium owed to the carrier – in this case $799. Remember, you can find out more information about costs by using our Florida Workers Compensation Premium Estimator Iocated above. It is a workers comp cost calculator tool that you may find useful in helping to determine overall insurance costs.


Florida Workers Compensation insurers may offer an insured guaranteed flat dividends or loss-sensitive dividends, typically following the policy term.  These dividends can be a set % of the premium (typically 5% to 15%) or based upon a pre-agreed loss ratio throughout the term.  Upon successful completion of agreed-upon guidelines, the insured will receive a return premium. 

If an insured employer pays $8,793 in premium on a policy with a 10% flat dividend and meets all eligibility guidelines, they should receive a return of approx $879 following the policy term.

*Workers Compensation policies are subject to additional fees, not contemplated in this example

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