While the cost trend for almost all forms of insurance continues on the upswing, business owners in Florida received some good news entering 2024.
Florida Insurance Commissioner Michael Yaworsky issued a final order in November granting approval to the National Council on Compensation Insurance for a statewide workers’ compensation insurance rate decrease of 15.1% for new and renewal policies effective in Florida as of Jan. 1.
“I’m pleased to announce that Florida businesses will see a reduction in workers’ compensation rates for the seventh consecutive year,” Yaworsky said in a news release.
“It’s clear the workers’ compensation market in Florida is stable and competitive; I’m confident lower workers’ compensation rates will assist in ensuring that all of Florida’s businesses have the opportunity to succeed in our state.”
Workers’ compensation insurance is mandatory for most employers in Florida. Failure to have coverage puts employees at risk and subjects employers to penalties.
In the construction industry, employers with one or more employees, including the owners of the business who are corporate officers or limited liability company members, must have workers’ compensation coverage.
Building contractors are required to make certain that all subcontractors have the required workers’ compensation insurance before they begin work on a project. If a subcontractor does not have workers’ compensation insurance for its employees, those workers become the employees of the contractor. If an injury occurs, the contractor is responsible for paying the benefits for the work-related injury, illness or fatality.
In agriculture, employers with six regular employees and/or 12 seasonal workers who work more than 30 days during a season and/or more than a total of 45 days in the same calendar year must have coverage.
Employers in other businesses with four or more employees, including business owners who are corporate officers or limited liability company members, must have workers’ compensation coverage.
“A decrease in workers’ compensation rates means lower insurance costs for employers, allowing them to put more money back into their business, where it belongs,” Chief Financial Officer Jimmy Patronis said in the release.
“I’m pleased that Florida’s business owners will benefit from another year of rate relief and look forward to keeping Florida the best place to live, work and run a business.”
Visit tinyurl.com/2w3kc4cc for more information about the rate hearing.