Chris Oakley is leaving the BearWise Landscapers division of Black Bear Insurance Agency to work for a local landscaping business in Orlando, Florida. Chris has written many great articles on this website for Florida landscapers. We are leaving all of those articles online for our clients and prospective clients to still read. Chris has been a tremendous help in launching the BearWise Landscapers insurance program and adding valuable services to Florida landscapers. We look forward to continually building on this foundation.

The service you receive at BearWise Landscapers will continue to be exceptional. We are proud to have Jake Schrimsher join the team at this insurance program directed towards landscaping businesses. I’ll write another article about Jake’s experience and you can look forward to reading articles from him in the future.

New workers compensation insurance rates are going into effect in Florida for all policies issued on and after April 1st, 2009. The new rates have an average rate increase of 6.4%. We have been tracking this for quite some time as you can see from the previous articles below:

• 2008 Workers Comp Rates
• Upcoming Workers Comp Rates
• 2009 Workers Comp Rates
• Changes in 2009 Florida Work Comp Rates
• 2009 Workers Comp Rate Increase

These new rates do not apply to policies that are currently in effect. They will only be changed when your policy renews on or after April 1st or for new policies that are written on or after April 1st, 2009. Here are the new workers compensation insurance rates for landscaper employees in Florida:

• 0042 - This classification code is applied to businesses that are primarily engaged in installing landscapes. The classification includes planning, clearing, grading and planting necessary for landscaping operations. It also includes the installation of sod. The clearing and grading done by these insureds is of the fine type necessary for finishing operations and does not result in changes to the contour of the land. This classification cannot be used in Florida along with the class code 9102 unless the operations are conducted by separate work crews. Please contact our office for more information regarding the use of both classification codes on the same policy. The NEW Florida rate for this classification is 7.57 dollars for every 100 dollars of remuneration. It was 7.11 at the beginning of the year and in 2008 it was 8.70.
• 9102 - This classification code is assigned to insureds engaged in the lawn maintenance business. Code 9102 is also applied to all employees engaged in the operation of public parks. For landscapers, the essential difference between the application of Code 0042 and Code 9102 is that Code 0042 applies to work involving new landscaping installations whereas Code 9102 applies to work involving the maintenance of existing landscaping and/or lawn maintenance. Insureds that perform maintenance of lawns, grounds, and gardens include work that may involve lawn mowing, raking, application of liquid or granular fertilizer, spraying and trimming of shrubs or small trees from the ground, and thatching or aerating. The NEW Florida rate for this classification is 4.47 dollars for every 100 dollars of remuneration. It was 4.20 at the beginning of the year and in 2008 it was 4.86.
• 0106 - This classification code is applied to employees and businesses that prune and trim trees from above the ground. This code is applicable by job site to tree pruning contracts requiring any above-ground level work and it also applies to the whole contract including, but not limited to, chipping and cleanup activities regardless of whether or not a separate contract is written for tree pruning or lawn maintenance and another contract is written for chipping or cleanup. Incidental tree removal on a developed site conducted in connection with tree pruning, spraying, and repairing operations is also assigned to Code 0106. This classification includes risks contracting exclusively to remove immediate tree hazards due to natural catastrophes. Tree hazard cleanup may involve removing dead trees; trees or branches that are leaning on trees, power lines, or other structures; trees with broken or cracked stems; or large, dead or broken limbs that are still attached to a tree. The NEW Florida rate for this classification is 13.78 dollars for every 100 dollars of remuneration. It was 12.95 at the beginning of the year and in 2008 it was 15.96.
• 5183 - This classification code is applied to employees and businesses that are engaged in plumbing work that is otherwise unclassified by the Basic Manual. For landscapers, this code is used for installation of underground lawn sprinkler systems. Trenching work performed by the same contractor engaged in the installation of underground pipes for sprinkler systems is assigned to this classification since trenching work is an integral part of the underground sprinkler installation work. Such operations may be performed using either a vibrating plow or a pipe pulling machine, which knives the ground to a depth of 12 to 18 inches and to a width comparable to that of the piping being used. The piping is then automatically inserted into the ground. The NEW Florida rate for this classification is 5.47 dollars for every 100 dollars of remuneration. It was 5.14 at the beginning of the year and in 2008 it was 6.75.

The employees and operations of most landscaping businesses are classified into the codes listed above. Depending on the nature of work performed, other classification codes may apply to the business. Code 8810 (NEW 2009 rate: 0.30) is used for employees that only do clerical work and 8742 (NEW 2009 rate: 0.52) is used for those employees that only have sales duties. We are available to provide you with more information about these classifications and how your own employees should be classified.

These rates are still lower than what they were in 2008, but are a little higher than policies that are renewing before April 1st, 2009. Feel free to call our office to discuss this rate change and to have one of our agents quote your workers compensation policy.

I often mention the National Council on Compensation Insurance (NCCI) in my articles about workers compensation. I figured I should write an article describing this organization, so here is some information about them:

The National Council on Compensation Insurance Inc. is based in Boca Raton, Florida, and manages the nation’s largest database of workers compensation insurance information. Their website is available at http://www.NCCI.com.

Operating on a not-for-profit basis since 1922, NCCI studies workplace injuries and other national and state factors impacting workers compensation to provide analysis of industry trends, prepare workers compensation insurance rate and loss costs recommendations, determine the cost of proposed legislation, and provide a variety of data products to over 900 insurance companies and nearly 40 state governments.

NCCI’s core services include:

• • Rate and advisory loss cost filings
• • Cost analyses of proposed and enacted legislation
• • Residual market management
• • Production of experience ratings
• • Statistical and compliance services
• • Maintenance of the workers compensation infrastructure of classifications,
  rules, plans, and forms

In addition to providing these services to the state of Florida, the map below is a convenient reference of states whose insurance departments have designated NCCI as the licensed rating and statistical organization.

In a previous article, I mentioned a potential change in the 2009 Florida workers compensation rates. Well, the rate increase proposed by NCCI was declined and a smaller increase was approved by Florida’s Insurance Commissioner. He is an excerpt describing the process that took place:

An order dated January 26, 2009 was entered by Insurance Commissioner Kevin McCarty disapproving an NCCI requested one-year 8.9% increase in the overall workers’ compensation rate levels effective March 1, 2009 on new, renewal, and outstanding policies. The order indicated that although the rate filing was disapproved, a rate filing requesting a 6.4% increase for new and renewal policies effective April 1, 2009 would be approved. The order indicated that there would be no changes in rates for outstanding policies. On February 2, 2009, NCCI submitted an amended rate filing in accordance with the January 26, 2009 order. On February 9, 2009, an order was entered by the Insurance Commissioner approving this amended rate filing.

I will write another article in a couple of days to let our clients know the new workers comp rates for landscapers that will go into effect for all new or renewal policies beginning April 1st, 2009, or later. Here is the article listing the new rates.

BearWise Landscapers is a division of Black Bear Insurance Agency, Inc. We are proud to be an independent agency with access to multiple insurance carriers. We are also proud members of the Florida Association of Insurance Agents (FAIA). Here is some more information about FAIA:

The Florida Association of Insurance Agents is the oldest insurance organization, of any type, in the state of Florida. Officially organized in 1904 as the Florida Local Underwriters Association, its roots go back to 1896 when two Ocala agents first banded together to protect their customers and themselves from unfair practices by large insurance companies. Our current name was adopted in 1941.

Organized in Jacksonville, FAIA moved its headquarters first to Tampa and then, in 1971, to Tallahassee to facilitate communications with state insurance regulators and lawmakers. Our 14-member board of directors selects a president responsible for managing the organization, which today serves as a central information source for more than 1,700 independent agencies employing over 17,000 licensed individuals.

In total, FAIA member independent agents represent all but a handful of companies licensed in this state, but…they are not employees of those companies. They are independent contractors, free to recommend to you the coverage and policies of any company with which they choose to be appointed. This mode of operation has proven so successful that today independent agents sell and service over 85 percent of Florida’s non self-insured commercial premium and over half of the personal lines premium volume, including auto and homeowners. Theirs is a relationship-based business built on providing you with the widest range of options at the best possible price.

In addition to a broad range of education programs and public relations initiatives, FAIA provides technology assistance (including web design) to members and each year hosts the industry’s most highly-attended convention, featuring presentations from industry experts, networking opportunities, and numerous education classes presented by a well known staff of instructors.

Today, FAIA is a nonprofit state trade association affiliated with the Independent Insurance Agents and Brokers of America, Inc., (IIABA) and 22 local boards conveniently located throughout Florida. Our goal is to serve insurance consumers by encouraging a healthy and competitive insurance marketplace. This is achieved, in part, through education, legislation, and other programs that assist independent agents (those who represent more than one company) in helping their clients and consumers find the best coverage at the best price.

FAIA Contact Information:

Street Address:
3159 Shamrock South
Tallahassee, Florida 32309

Mailing Address:
P.O. Box 12129
Tallahassee, Florida 32317-2129

Telephone: 850-893-4155
Fax: 850-668-2852
Website: http://www.faia.com

A little less than a month ago the Department of Homeland Security (DHS) stated that the 33,000 cap for H-2B workers had been reached for the second half of the 2009 fiscal year. For the second year in a row this means that many landscape contractors will not be able to get the H-2B workers they need to run their business successfully and legally.

The Professional Landcare Network (PLANET) has been pushing hard for Congress to get involved and this past week there was finally some movement on the issue.

On February 5, 2009 a group of twenty senators led by senator Mikulski (D-MD) introduced a piece of legislation titled “Save Our Small and Seasonal Businesses” that would extend the H-2B returning worker exemption for three years.

PLANET is requesting that everyone contacts their senators and representatives to inform them on how urgent this pending legislation is.

For more information on this legislation, the senators involved, and how to contact your congressional leaders please click here.