Florida's Work Comp Rates To Drop An Average Of 6.8% Today
By Lonce LaMon - January 1, 2010
In the state of Florida, the premiums employers pay for all new and renewed workers’ compensation policies will drop on average 6.8 percent starting today, January 1st 2010. Florida’s insurance commissioner signed an order for this decrease in October 2009.
The rate reduction, submitted by the National Council on Compensation Insurance, will result in an estimated $166 million in savings for employers. Among the larger decreases are those for lawn maintenance businesses, 16.9 percent from the 2009 rate, and irrigation systems installers at 10.5 percent.
It is the seventh consecutive rate decline since the Florida Legislature passed sweeping reforms in 2003. But it almost didn’t happen.
In October 2008, the Florida Supreme Court issued a controversial ruling that applicants' attorneys were entitled to “reasonable fees†in workers' compensation insurance cases.
Critics worried that the decision would result in higher premiums for businesses.
In June, Gov. Charlie Crist signed a bill passed by lawmakers that caps attorneys’ fees in workers’ comp cases, essentially undoing the high court’s decision. Under the new law, attorneys’ payments are based on a set fee schedule.
Before the 2003 legislative reforms, Florida’s rates were among the highest in the country.
“Florida's 2003 legislative reforms, combined with the Legislature’s passage of House Bill 903 that restored caps on attorneys' fees, have continued to lead to declines in workers' compensation rates and stability in the marketplace," said Insurance Commissioner Kevin McCarty in a news release. "This is especially important for Florida businesses given the current economic environment."
A report issued December 31st by the Florida Office of Insurance Regulation shows there are 251 entities writing workers’ compensation insurance in the state — 246 are private insurers, four self-insurance funds, and the Florida Workers’ Compensation Joint Underwriting Association.
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