The Florida Office of Insurance Regulation (OIR) has announced lower workers’ comp rates by 15.1 percent overall. Rates will go into effect beginning on January 1, 2024 or whenever your workers’ comp policy is renewed.
Each year, FRSA testifies before the OIR, asking for stability in the rates or a rate freeze for roofing classification code 5551. FRSA President Les Sims, CPRC led testimony followed by members Adam Purdy, CPRC, Ralph Davis and FRSA-SIF Fund Administrator, Debbie Guidry. Tibor Torok and FRSA Executive Director, Lisa Pate, submitted written testimony asking for consistency in the rates, stating an uncertain insurance market, new workers in the industry and an unrealistic decrease requested by NCCI, which based its actuarial data on claims filed during the pandemic years – a time when most states were locked down and companies were not working.
Many thanks to the members who reached out to OIR asking for consistency in the rates. Our concern is two-fold: rates that continue to drop are not sustainable for insurance providers who see roofing as a high-risk industry with little return on premium. We don’t want insurance providers to stop writing workers’ comp coverage and follow the same path as homeowners’ insurance carriers. Second, an unintended consequence of lower workers’ comp rates is an increase in experience modification factors. With higher mods, it makes it more difficult for contractors to bid on many jobs because building owners and GCs often require a mod below a certain level.
Roofing contractors will be paying 22 percent less on the classification code 5551 for the 2024 year.
Looking for workers’ comp insurance with exceptional customer service, a drug-free workplace program and the potential for dividends? Call 800-767-3772 ext. 206 and speak with Alexis at the FRSA Self Insurers Fund for more information.