Workers’ compensation insurance rates in Florida should decrease by an average 6.9% in 2026 under a proposal by the National Council on Compensation Insurance.
Submitted last month, the NCCI’s proposed reduction is a recommendation only. Rates are set by the Florida Commissioner of Insurance, usually after a public hearing.
The recommended filing is based on experience data for policy years 2022 and 2023 as of year‐end 2024. The proposed reduction is being driven by declines in lost-time claim frequency, according to a summary from NCCI.
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“The workers compensation system remains healthy. For the last decade, the system has broadly benefited from a steady drop in claim frequency, rising wages, and moderate severity. The changing workforce and evolving economy also continue to impact workers compensation,” the summary notes.
Workers’ compensation is a no-fault system that aims to protect employers from getting sued by injured employees and, in exchange, employers provide employees injured on the job the care they need to return to work. Employers are required to provide compensation for lost wages if an employee misses more than eight days of work due to an on-the-job injury.
Most employers in Florida are required to carry workers’ compensation insurance but there are exceptions for businesses with four or fewer employees and for construction companies with four or fewer officers. While those firms aren’t mandated to carry the coverage, they are required to file for exemptions with the state. Data show that 203,365 employers filed for exemptions with the state in calendar year 2024.
Workers’ compensation affects a large and disparate group of interests, including business groups, labor unions, insurance companies, plaintiffs’ attorneys, and injured workers. Because of that, workers’ comp bills in the Florida Legislature attract a spate of special interests, and getting changes passed through the Legislature and signed into law isn’t always easy.
A 2025 review of 50 states and Washington, D.C., workers’ compensation rates by the Oregon Department of Consumer and Businesses Services shows Florida ranked No. 30 in the nation for workers’ comp costs in 2024. That’s an improvement from the previous analysis of 2022 premium data, when Florida ranked No. 28 for workers’ comp premiums.
Hawaii had the highest workers’ compensation costs in 2024, according to the report, followed by New Jersey, New York, California, and Vermont. North Dakota had the lowest rates in the nation.
If the proposed reduction (or a modified reduction) is approved, it will be the ninth consecutive year in which workers’ compensation rates have been ordered reduced by the state’s insurance commissioner. Florida Insurance Commissioner Mike Yaworsky on Nov. 18 last year ordered an average 1% rate decrease in workers’ compensation rates effective Jan. 1.
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