A single workers comp claim can raise your Florida premium by 8–200% and keep it elevated for three years. Here is exactly how claims affect your rates, how the experience modification factor works, and how PEO workers comp protects you from the rate spiral.
Most contractors focus on the direct cost of a claim — medical bills and wage replacement. But the indirect cost — the premium increase that follows — is often 3–5× larger than the claim itself. Here is what a single claim actually costs over three years.
| Claim Size | Year 1 Rate Increase | 3-Year Premium Impact | EMR Shift |
|---|---|---|---|
| $5,000 | 8–15% | $3,000–$8,000 | +0.05 to +0.10 |
| $15,000 | 20–35% | $12,000–$25,000 | +0.12 to +0.22 |
| $50,000 | 40–80% | $45,000–$90,000 | +0.25 to +0.45 |
| $100,000+ | 80–200%+ | $100,000–$300,000+ | +0.50 to +1.20 |
Florida uses a 3-year experience period to calculate your EMR. A claim filed today affects your premium for three consecutive policy years — even after the claim is fully closed and paid. A $50,000 claim can cost you $45,000–$90,000 in additional premium over three years on top of the original claim cost.
An EMR of 0.85 means you pay 15% less than the base rate. Contractors with clean safety records and no claims earn a discount EMR. This is the goal.
An EMR of 1.00 means you pay the standard base rate. No claims bonus, no surcharge. Most new businesses start here.
An EMR of 1.40 means you pay 40% more than base rate. Above 1.25, many general contractors will not allow you on their job sites. Above 1.50, most carriers decline to write your policy.
NCCI calculates your EMR using actual losses vs. expected losses for your industry and payroll size. Lost-time claims (where the employee misses work) are weighted 3–5× more heavily than medical-only claims. This is why a single serious injury can spike your EMR even if the total dollar amount is modest.
Your EMR is recalculated every year on your policy anniversary date. The calculation uses claims from the three most recent completed policy years, excluding the most recent year (which is still developing). So your current EMR reflects claims from approximately 2–4 years ago.
If you already have claims on your record and your carrier has non-renewed your policy or pushed you into the Florida JUA, Comp Ninjas can still help. Because you are covered under the PEO's group policy — not an individual policy — prior claims on your record do not automatically disqualify you. Contact us for a free review of your situation.