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State of Florida Shakes Up Workers Compensation Market

Finding the right carrier and coverage for workers compensation insurance is crucial for any business in any location. While it’s no surprise that regulations may change from place to place, what may be a bit of news is that sometimes large shakeups happen within a local market in terms of both regulations, as well as carriers. That’s the case with the current market for Florida workers compensation insurance, where the end of 2017 saw some major news and developments.

Insurance regulators for the state of Florida put a popular carrier into receivership, with the reasoning being that they had inadequate reserves. This is obviously a huge issue for an insurance carrier, who has to actually be able to pay out on their policies. That is the point of the policy, after all.

For those who are unfamiliar, receivership is basically a type of corporate bankruptcy. In the corporate world, this can be done in order to attempt to restructure a company and avoid liquidation. The goal is to right the ship of the company without its full dissolution.

In this specific case, the carrier in question is Guarantee Insurance Co., also known as GIC. The company provides workers compensation insurance to more than half the states in the country, and is based in Fort Lauderdale.

The Florida Office of Insurance regulation, or OIR, determined that the assets of the company were insufficient to pay outstanding obligations. The latter figure worked out to be over a quarter of a million dollars.

Of course, insurance is meant to protect against risk for businesses, not provide them with more of it. So this has been an unfortunate turn of events for the businesses and business owners dealing with this situation in Florida. Workers compensation insurance in particular is a crucial safeguard, as well as a business requirement, and not one you want to be having any issues with.

The state of Florida dictates that non-construction businesses must have workers compensation insurance in Florida if they have four or more full or part-time employees. In the construction business, all businesses are required to carry workers compensation, while in the agricultural industry, requirements dictate that businesses with six or more regular employees and/or at least 12 seasonal employees for more than 30 days must have workers compensation insurance.

All of this underscores the need to work with trusted, high quality Florida workers compensation insurance providers. It’s always recommended to consult with a local, experienced professional in your area who can help answer any questions, and ensure you receive the coverage you need at a reasonable price.

Workers Compensation

Workers’ compensation, also known as workman’s comp or workers’ comp, is a form of insurance that provides benefits to employees who suffer job-related injuries or illnesses. It is designed to protect workers and provide them with financial support while they recover from their work-related injuries.

The workers’ compensation system varies from country to country, and sometimes even within different regions or states of a country. Therefore, it’s important to consult the specific laws and regulations of the relevant jurisdiction to get accurate and up-to-date information.

Here are some general aspects of workers’ compensation:

Coverage: Workers’ compensation typically covers injuries or illnesses that occur in the course of employment. This can include accidents, occupational diseases, repetitive strain injuries, or even psychological conditions resulting from workplace stress. Some jurisdictions may have specific requirements for an injury or illness to be considered work-related.
Benefits: Workers’ compensation provides various benefits to eligible employees, including medical treatment, wage replacement, disability benefits, rehabilitation services, and in some cases, vocational retraining. The specific benefits and the duration of coverage can vary depending on the severity of the injury or illness.
No-Fault System: Workers’ compensation is often considered a “no-fault” system, meaning that employees are generally entitled to benefits regardless of who caused the injury or illness. There are exceptions, such as cases involving employee misconduct or injuries caused by the use of drugs or alcohol.
Employer Responsibility: In most jurisdictions, employers are required to carry workers’ compensation insurance or provide equivalent coverage. This insurance typically covers the costs associated with the benefits provided to injured workers. Employers may also have responsibilities to report workplace injuries, cooperate with the claims process, and maintain a safe work environment.
Filing a Claim: To receive workers’ compensation benefits, an employee typically needs to report the injury or illness to their employer within a specified time frame. The employer then assists in initiating the claims process with the relevant insurance carrier or workers’ compensation board. It is crucial to follow the proper procedures and deadlines to ensure a successful claim.
Dispute Resolution: Disagreements or disputes may arise during the workers’ compensation process, such as disputes over the extent of injuries, the need for medical treatment, or the duration of benefits. Most jurisdictions have a system in place to handle these disputes, which may involve mediation, administrative hearings, or appeals to specialized workers’ compensation boards or courts.

Remember, workers’ compensation laws and regulations can vary significantly, so it’s essential to consult the specific laws and guidelines of the relevant jurisdiction for accurate and detailed information.