Posted on May 17, 2014
In this tough economy, Florida business owners, like many all over the U.S., are looking for ways to cut expenses so they can continue to stay in business until the economic situation turns around. But it seems they won't be able to catch a break when it comes to workers compensation insurance. Despite slow job growth, high unemployment and decreased business revenues for many companies in the Sunshine state, the workers comp rates increased by 8.9 percent for 2012.
Add to that the 7.8 percent increase to workers compensation insurance rates employers received just last year, and Florida companies are really feeling intense pressure due to rising business insurance costs.
The Florida Insurance Commission approved the increases over the last two years and noted that since 2003, the rates have actually decreased by almost 59 percent. But that doesn't provide relief to Florida businesses already struggling to make it in the depressed economy.
So what can Florida companies do when faced with these increases? Many business owners will want to take the time to review their entire business insurance package to look for areas where changes and decreases in coverage may help to absorb the cost of the increased workers comp rates. It is always a good idea to review policies annually to make sure they accurately reflect the business at present. Your insurance broker can help you evaluate your policy and make the necessary coverage changes if needed.
In some cases, increasing deductibles can help to lower insurance premiums. Some business owners also discover that insurance they purchased many years ago may be for property they no longer possess or for a larger number of employees that are no longer on payroll. By taking time to look at existing coverage, companies can often find savings, and your agent is the best resource for aiding in this endeavor.