Worker’s comp claims could drop 14.1% on Jan. 1

TALLAHASSEE, Fla. – Sept. 2, 2008 – While health and property insurance costs more each year, business owners can take small comfort in the cost of workers’ compensation insurance rates that continue to decrease. The cumulative rate decrease since 2003 is 58 percent.

The National Council on Compensation Insurance filed a request with the Office of Insurance Regulation for an average 14.1 percent rate decrease, which, if approved, would save about $465 million for Florida employers effective Jan. 1, 2009. A hearing on the proposed rate decrease is expected in October.

“A stable and viable workers’ compensation system is good for everyone, especially for Florida businesses and their employees – the backbone of our economy,” said CFO Alex Sink, who oversees the Department of Financial Services, including its Division of Workers’ Compensation. “No other state has matched Florida’s rate reductions, and no other state is working harder to take care of employers and employees.”

Augmenting the rate cuts, Division of Workers’ Compensation outreach efforts have resulted in a more than 25 percent reduction in workers’ compensation lost-time injury rates, and compliance and enforcement activities have added more than 43,000 employees to the workers’ compensation system during the last four years.

“By improving compliance, we not only protect more workers, but also bring more premiums into the system, which helps to further reduce rates,” says CFO Sink.

The Division of Workers’ Compensation’s Bureau of Compliance has certified instructors who, starting in October, will present approximately 40 continuing education programs a year throughout Florida, focusing on compliance and coverage issues important to contractors and employers.

© 2008 FLORIDA ASSOCIATION OF REALTORS®

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