Florida is one of the states that allow Consent to Rate with Workers Compensation policies. A “Consent to Rate” is where the insured signs off on allowing the insurance company to charge a higher rate. Why would anyone agree to be charged a higher rate? There are reasons that may make sense. An insured may be unable to obtain insurance coverage in the open market at the filed rates. It also may be more cost effective then going to the high risk JUA pool. Reasons for being in this position could be unfavorable claims history, small payroll, or a high risk workers compensation class code.
Before brokers or insureds decide to go with a Consent to Rate Workers Compensation policy, they should exhaust all avenues, as this can be a significant cost even to companies with very small payrolls.
Learn more about how SourceOne Partners can help you save money on workers’ compensation with a PEO.