Starting January 1, 2020, new and renewal Florida workers’ compensation policies with effective dates beginning January 1, 2020, through December 31, 2020, will have a 1% surcharge to help provide a safety net for the state’s injured employees.
The Florida Workers’ Compensation Insurance Guaranty Association (FWCIGA) pays the claims of injured employees if an insurance carrier becomes insolvent. The Florida Office of Insurance Regulation approved the 1% surcharge to help FWCIGA resolve claims arising from the November 2017 insolvency of Guarantee Insurance Company. The FWCIGA’s last assessment was in 2005.
What You Should Know
- All carriers are required to bill and collect the 1% surcharge and remit directly to the FWCIGA
- Zenith Insurance Company has elected to incorporate the billing and collection of this assessment across the deposit and installments/payroll reports in accordance with the standard policy payment terms, rather than in one lump sum
- The assessment will be calculated first using an estimate based on the policy’s Estimated Annual Premium (EAP) and then will be finalized/reconciled at final audit
- Dividends will not include any portion of the assessment in the calculation because it is not considered premium
To learn more, you can read the FWCIGA letter about the surcharge, or the FWCIGA FAQ document.
If you have questions please contact us at: info@primegroupins.com or 844-631-4901