Workers' comp may get pricier

Insurance rates for businesses could climb in April as much as 13.7 percent, barring legislative action to overhaul the system.

By JEFF HARRINGTON, Times Staff Writer
© St. Petersburg Times
published February 13, 2003

In the latest shock to Florida's troubled program to help injured employees, businesses statewide can expect to pay an average of 13.7 percent more this year in workers' compensation premiums.

The rate increases, which begin April 1, were approved this week by the state's Office of Insurance Regulation (formerly the Department of Insurance.) But Kevin McCarty, director of the regulatory office, said the rates could be adjusted downward if the Legislature acts on a proposed overhaul of the troubled workers' comp system.

McCarty said regulators were sensitive to the impact of the latest rate hike. He blamed heavy losses from insurers and a growing reluctance from some insurers to provide coverage.

"Adequate rates and reforms are needed to reinvigorate the market so that coverage is available to Florida employers," he said.

The National Council of Compensation Insurance, which acts on behalf of workers' comp insurance companies, filed a request in August that would have raised Florida's average rates 21.5 percent.

State regulators rejected the plea, tentatively approving an 11.9 percent increase in November. The figure was changed to 13.7 percent this week.

The increase was postponed until April, to see what comes of recommendations from the Governor's Commission on Workers' Compensation Reform. The commission released its final report last month.

The commission proposed changes that include making companies with poor safety records pay more, offering incentives for rehabilitation programs that help injured employees return to work, and allowing some claims to be handled administratively.

Even without another increase, workers' compensation premiums in Florida are the second-highest in the country, while benefits for workers rank in the bottom quarter. Last week, Gov. Jeb Bush singled out workers' comp insurance, along with rising health care costs, as the most challenging issues facing Florida businesses.

-- Jeff Harrington can be reached at harrington@sptimes.com or (813) 226-3407.

© 2006 • All Rights Reserved • Tampa Bay Times
490 First Avenue South • St. Petersburg, FL 33701 • 727-893-8111

Contact the Times | Privacy Policy
Standard of Accuracy | Terms, Conditions & Copyright