Just a heads up for our Florida relationships. Keep in mind for your pricing, costing, profit planning for next year.  Everything helps!  Tony

Proposed Workers’ Compensation Rate Reduction!

The National Council on Compensation Insurance (NCII) has delivered its annual rate filing recommendation to the Florida Office of Insurance Regulation (OIR).

Based upon its review of the most recent data available, NCCI has proposed an overall rate level decrease of 16.5%, effective January 1, 2008.  If approved, it will be the fifth consecutive drop – a cumulative overall statewide average rate decrease of 50.4 percent.

The previous rate reductions approved by the OIR are as follows:

• 10/1/03 (-14.0%)
• 1/1/05 (-5.1%)
• 1/1/06 (-13.5%)
• 1/1/07 (-15.7%)

Assuming the filing is approved as proposed, the overall average rate impact at an industry level would be as follows:

The OIR is expected to schedule a public rate hearing in October,

The word “succession” is broken into two pieces, “success” and “ion”. It literally means the “passing on” or “transition”of success. Succession planning is a critically important “rite of passage” of a business from one generation of ownership and management to another, most often drawing on the resources of family members who are willing and able to carry on the business. While it is an important adjunct in the overall estate plan of the business owner, it doesn’t have to be complicated and should occur before probate. The four steps to succession planning describe the important considerations in choosing the proper and most appropriate team and process for changing out the leadership of the business.

FOUR STEPS TO SUCCESSION PLANNING

1. Determine who is involved
2. Develop a strong business plan with new accountabilities
3. Determine when the plan needs to go into effect
4. Determine how the plan is to be executed

Depending on the family dynamics, each family member involved in the transition of wealth understands the difference between fair and equal. Additionally, relationships between the siblings, the role of in-laws in the business, the ownership split, the influence of owners and spouses and the respect that the various family members have garnered among the employees and key customers, all provide fodder for the potential arguments that could arise as to what is the best succession plan to achieve a transition for the business, for the employees and for the family. In some cases, the customers have a stake in the outcome as well.

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We are happy to announce that Ed Sundberg, Managing Director of Burruano Group, has been selected to contribute an article on “Family Owned Business Succession Planning” for the CBO magazine’s November 2007 issue. Sundberg is known internationally as a respected business consulting executive, sought after advisor in sales growth and process and nationally known as a sought after speaker, author, company advisor during succession transitions.

We have just joined the Florida Home Builders Association.

We hope to assist Florida businesses who have been hard-hit lately. As a Florida business ourself (we are based in beautiful Naples Florida), with nearly 70% of our clients being in the construction or construction related industry, we understand recent downturns in the Florida economy that are making it hard for Florida based construction firms.

We are currently donating our time to regional committees for the building industry, sponsoring the NAHB Women’s Council, and offering workshops at national and regional builders’ conventions and conferences in an attempt to assuage this current downturn. Although there are a lot of outside factors that need to happen before a poor economy can be turned around, there are a number of steps any construction business owner can take to