Today, we issued a press release with the 2010 Florida Workers Compensation Rates. We are also sending out the following letter to Florida landscapers:

I would like to wish you a Happy New Year! As we prepare for 2010, I wanted to share some good news about the new Florida workers’ compensation rates. An average rate reduction of 6.8% from the 2009 workers comp rates will be effective on January 1st. This is the seventh annual drop in rates since 2003, when reforms were passed. Since that time, the average rate decrease is 63%.

This news is even better for businesses in the landscaping industry:

Lawn Maintenance Employees (Class Code 9102) - The new rate is 3.49 dollars for every 100 dollars of remuneration. This is a 16.9% reduction from the 2009 rate of 4.20 dollars. This classification has a 71% decrease since the 2003 rate.

Landscape Installation Employees (Class Code 0042) – The new rate is 6.36 dollars. This amounts to a 10.5% reduction, which is also larger than the state average.

Irrigation Employees (Class Code 5183) – New rate is 4.75 dollars for a 7.5% reduction.

Tree Trimming Employees (Class Code 0106) – The new rate is 13.31 dollars, which is actually 2.7% higher than the 2009 rate of 12.95 dollars. Even with this change, this classification has still received a 67% reduction since the 2003 rate.

These new rates will be applied to your policy at renewal. If you have any questions about workers’ compensation insurance, or if you would like to receive comparative quotes, then please do not hesitate to contact us. At BearWise Landscapers, we focus on the unique insurance needs of the landscaping industry and look forward to continually providing practical information and other valuable insurance services to your business.

As discussed in multiple agent articles before this one, there have been quite a few changes in the Florida workers’ compensation rates over the past couple of years. In 2009, July 1st will mark the third rate change (the first rate change was on January 1st and another one was effective April 1st). On Wednesday, July 1st, 2009, the following workers compensation rates for landscapers will go into effect and all current policies issued with the April 1st rates will be endorsed to reflect this change. Here are the newest 2009 workers comp rates for landscapers:

• 0042 – This classification is applied to employees that are involved in the installation of landscapes. This classification cannot be used in Florida with employees classified as 9102 unless the operations are conducted by separate work crews. If the work is not separated, then all of the employee payroll must be classified as 0042 since it is the higher rated classification code. To read more details about this classification, please refer to the agent article on class code 0042. The current rate for class code 0042 is 7.11 dollars for every 100 dollars of remuneration.
• 9102 – This classification code is assigned to employees that maintain lawns and gardens. This is your standard lawn maintenance and classification used by most landscaping businesses to rate their workers’ compensation premiums. To read more details about this classification, please refer to the agent article on class code 9102. The current rate for class code 9102 is 4.20 dollars for every 100 dollars of remuneration.
• 0106 – This classification code is used for tree trimmers and specifically it is used for those employees or businesses whose operations involve leaving the ground to trim trees. When ladders, bucket trucks, and any other equipment assists employees to get their feet of the ground to prune or trim trees, then this classification is applied to the remuneration of that job. It also includes the chipping and cleanup activities associated with the tree trimming. To read more details about this classification, please refer to the agent article on class code 0106. The current rate for class code 0106 is 12.95 dollars for every 100 dollars of remuneration.
• 5183 – This classification code is applied to employees of landscaping businesses that engage in the installation or repair of underground lawn sprinkler systems. For a more detailed description of this classification code, please refer to the agent article on class code 5183. The current rate for class code 5183 is 5.14 dollars for every 100 dollars of remuneration.

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. Class code 8810 (rate: 0.28) is used for employees that only do clerical work and 8742 (rate: 0.49) is used for those employees that only have sales duties. Class code 0005 (rate: 5.35) is used for landscapers with employees engaged in nursery operations. We are available to provide you with more information about these classifications and how your own employees should be classified. Feel free to call our office to discuss this rate change and to have one of our agents quote your workers compensation policy.

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 run into landscapers all the time who have their work truck under their personal auto policy. Please understand that if you get into an accident while performing business your insurance carrier can and probably will deny coverage for the incident. Work vehicles are NOT covered under personal auto policies unless the policy carries a business endorsement. The problem is many insurance companies do not offer a business use endorsement and the companies that do, have a list of qualifications and limitations on the coverage provided under a business use endorsement.

A commercial business auto policy is always the best way to cover your work vehicles. Through commercial business auto policies you can receive higher limits to increase the coverage and protection for your business. The cost difference between commercial auto policies and personal policies may surprise you. In some cases commercial auto policies are less expensive and still include higher coverage limits.

If you currently have a work vehicle on a personal auto policy, please go to www.BearWiseQuotes.com/landscapersto receive a free commercial business auto quote.

Make sure you are covered and your business is protected.