If there is such thing as good news with Florida workers comp insurance it is that we are expecting some rates to go down in 2019. After a large increase in 2017 rates are supposed to drop by around 13% starting January 1 2019.
The state has a governing body that controls the price of workers comp in Florida, the Office of Insurance Regulation. That means that even though there are many insurance companies willing to offer work comp coverage they really have no advantage over each other in giving you a better rate. But they do compete with perks, such as dividends, claims handling, online systems, resources, and more.
Rates took a huge jump in 2017 after the State Supreme Court ruling involving claims-cost restrictions. They were expecting a large windfall of expenses as a result, increasing rates by around 14%. Florida was already one of the more expensive states for workers comp so this increase didn't help. Our neighboring states fare much better on these policies but can have trouble crossing the border for work if they aren't careful.
Results from 2015 and 2016 are a large reason for the drop. There were fewer claims than expected, safer workplaces, and improved efficiency. A lot of times prices are based on estimates and it's a pleasant surprise when things turn out better than expected. How come that never happens with my electric bill?
Rates went down about 9% in 2018 so the drop next year will be two successive years of decreases. There are of course other factors that affect individual customer's prices but it's nice to see some more money put back in the pocket of the business owners who can then use it to improve their business, invest in more equipment, or pay their employees more. We insure hundreds of small businesses and are a family owned business ourselves so we love to see this kind of change happening.
If you have questions about your workers compensation policy or about setting one up, give us a call!