Florida W/C System Rated Healthy

The state agency’s report, which reviews the 2007 calendar year, said small businesses, new companies and construction firms faced some affordability problems, but that rates decreased 60 percent overall.

During 2007, 12 workers' comp underwriters entered the state market, bringing the number of companies writing policies to 241. The agency attributed rate reductions to fewer claims and a crackdown on companies that fraudulently avoided payments.

Although the state approved rate reductions of 18.6 percent for this year, the downward trend could reverse. A recent Florida Supreme Court ruling eliminated a cap on attorney fees in workers' comp cases. As a result, the National Council on Compensation Insurance is asking for an 18.6 percent increase in rates over two years to cover anticipated rising costs.