Workers' Compensation Rates Will Decrease July 1, 2010

Workers' Compensation Rates Will Decrease July 1, 2010

 

TALLAHASSEE, Fla. - Florida Insurance Commissioner Kevin McCarty today announced the National Council on Compensation Insurance (NCCI) made a filing with the Office of Insurance Regulation (Office) on May 7, 2010, which included a proposed 4.2% decrease in rates. This marks the eighth decrease in workers’ compensation rates since 2003. The cumulative overall statewide average decrease in workers’ compensation rates will be 64.7 percent since the 2003 reforms.

Senator Don Gaetz (R-Niceville) praised the decrease in rates, saying, "Our small businesses need every break possible right now. I'm pleased that the actions of the Legislature led to reform of the system and, consequently, to substantially reduced workers compensation rates for businesses." Gaetz is Chairman of the Senate Select Committee on Florida's Economy.

NCCI made the rate filing due to a change in the Special Disability Trust Fund (SDTF) assessment -- a change that ultimately reduces the insurance company’s overhead expenses. The assessment rate has been reduced from 4.52% to 1.46%. This lower rate will be evident on new and renewal policies, effective July 1, 2010.

"This reduction in rate will provide rate relief for Florida's business owners," said Insurance Commissioner Kevin McCarty. "The rate reduction follows a consistent trend of declining workers' compensation rates in Florida that began following the legislative reforms in 2003."

Florida's Legislature established the SDTF in 1955 to encourage the employment of workers with pre-existing conditions. The SDTF was modified in 1997 to eliminate the eligibility for accidents after January 1, 1998. The SDTF is maintained by assessments on carriers and self-insurers. This is the first decrease in the SDTF assessment since 1994.

NCCI is the ratemaking organization that files workers' compensation rates for all carriers in Florida.