Workers’ Comp Rates to Drop by 6.9% Next Year

By Florida Phoenix Staff

Insurance Commissioner Mike Yaworsky ordered a 6.9% decrease in workers’ compensation rates for the coming year. The reduction applies to both new and renewal policies effective Jan. 1, 2026.

“I am pleased to approve a substantial rate cut of 6.9% for Florida’s workers’ compensation policies this upcoming year. This rate decrease directly translates to reduced operating costs for businesses, encouraging investment and growth throughout Florida’s economy,” Yaworsky said in a prepared statement Monday.

“This also marks the ninth consecutive year of rate decreases for workers’ compensation policies — more evidence of Florida’s success in managing risk and maintaining a competitive insurance environment.”

Workers’ compensation is a no-fault system that aims to protect employers from getting sued by injured employees and provide workers injured on the job with 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 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.

The 6.9% rate reduction matches the recommendation put forth by the National Council for Compensation Insurance earlier this year. NCCI is the licensed rating organization in Florida, authorized to suggest workers’ compensation rates. NCC’s filing is a recommendation only. Florida’s insurance commissioner is charged with setting the rates.

The Oregon Department of Consumer and Businesses Services earlier this year reviewed employers’ workers compensation premiums in 50 states and Washington, D.C. The analysis ranked Florida No. 30 in the nation for workers’ comp costs in 2024. That was an improvement from the previous analysis of 2022 premium data, when Florida ranked No. 28 for workers’ comp premiums.