The State of Florida Revolutionizes the Workers’ Compensation Market
Finding the right provider and coverage for workers’ compensation insurance is crucial for any business, anywhere. While it is not surprising that regulations change from place to place, what may be little news is that big changes sometimes occur within a local market in terms of both regulations, as well as operators. That’s the case in Florida’s current workers’ compensation insurance market, where late 2017 saw some big news and developments.
Florida insurance regulators put a popular company on hold, on the grounds that they had inadequate reserves. Obviously, this is a big problem for an insurance company, which must be able to pay for its policies. That’s the point of politics, after all.
For those unfamiliar, receivership is basically a type of corporate bankruptcy. In the corporate world, this can be done to try to restructure a company and avoid liquidation. The objective is to straighten the ship of the company without its total dissolution.
In this specific case, the carrier in question is Guarantee Insurance Co., also known as GIC. The company offers workers’ compensation insurance to more than half the states in the country and is based in Fort Lauderdale.
Regulation from the Florida Office of Insurance, or OIR, determined that the company’s assets were insufficient to pay outstanding obligations. The latest figure turned out to be more than a quarter of a million dollars.
Of course, insurance is meant to protect against business risks, not to give them more. So this has been an unfortunate turn of events for businesses and business owners facing this situation in Florida. Workers’ compensation insurance in particular is a crucial safeguard, as well as a business requirement, and it’s not one you want to get into trouble with.
The state of Florida dictates that non-construction companies must carry Florida workers’ compensation insurance if they have four or more full or part-time employees. In the construction business, all businesses must have workers’ compensation, while in the agricultural industry, the 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 reliable, high-quality Florida workers’ compensation insurance providers. It is always recommended to consult with a local professional with experience in your area who can help answer any questions and make sure you receive the coverage you need at a reasonable price.