NCCI suggested, and the Florida DOI accepted, a new subcontractor rule effective 3.1.23 for Florida. Of particular importance is the caveat pertaining to subcontractors that utilize the services of a PEO. Â Specifically, regarding certificates of insurance (Under Item 04-FL-2022-Revisions to Basic Manual Rules for Subcontractors in Florida Exhibit 2H 1B 1), the new rule states that if a subcontractor is a client of an Employee Leasing Company, they must supply a list of the employees leased to the subcontractor as of the date work was commenced for each project. Â Said differently, every new certificate request must show employees in place at that exact time of certificate issuance. Â Again, this rule is effective for all new and renewal policies with an effective date of 3.1.23.
Lots to digest here but a few ‘quick hit’ items that come to mind:
1.     Technically, any company (or carrier?) that wants to dispute this ruling, “must submit a rule filing to the OIR to include information as required by 627.211, Florida Statutues, and Rule 69O-189.016, Florida Administrative Code; prior approval by the OIR is required.” We hope carriers do such as this will be an administrative nightmare for all parties.
2.     To comply: Immediately, the PEO and broker need to keep an ongoing (“real time”) employee census for all client companies to be able to certificate off of.  This being a result of a certificate of insurance for subs needing to show a list of employees it is covering.
3.     What about ASO? This rule does not contemplate a PEO-Client Company relationship where coemployment for workers’ compensation is not in play.
Other questions to ponder: What happens when the GC doesn’t accept the employee census data from the PEO? Will carriers now have to supply MPPs for all contractor exposures? Â At what point does Florida become an MCP state, or will this even matter?
