Florida employers could see another round of decreases in the costs of their workers’ compensation insurance.
The National Council on Compensation Insurance (NCCI) is recommending that workers’ compensation rates be reduced by an average 7.4% beginning Jan 1, 2027.
NCCI is the licensed rating organization in Florida, authorized to suggest workers’ compensation rates. NCCI’s filing is a recommendation only. Florida’s insurance commissioner is charged with setting the rates. Often, the commissioner’s office holds a public meeting on proposed rates.
The reduction is largely driven by a reduction in the frequency of “lost-time claims,” when employees miss work because of injuries.
“That means workplaces are safe. That’s a great thing for employees,” Florida Chamber of Commerce Vice President of Government Affairs Carolyn Johnson told the Phoenix Friday. “And that’s a business’ greatest asset, its employees. So having safer workplaces, that’s just fantastic news.”
Workers’ compensation is a no-fault system that aims to protect employers from getting sued by injured employees and, in exchange, employers provide employees injured on the job 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 on-the-job 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.
NCCI reviewed the premium and loss experience for Florida employers in policy years 2023 and 2024 in making the recommendation.
While the NCCI is recommending an overall reduction, its proposed rate filing does take into consideration minor increases to the maximum allowable rates for physician and other non-hospital providers that treat injured workers. And despite the small bump (0.06%), NCCI’s recommendation reflects a lower-than-anticipated medical loss-ratio trend.
According to a summary, the lower medical loss ratio is tied to strong wage growth. Nationwide, payroll increased 4.8% from 2024 to 2025, while employment growth (largely driven by the healthcare sector) rose just 0.5% during that same time.
If the proposed reduction (or a modified reduction) is approved, it would be the 10th consecutive year in which workers’ compensation rates have fallen for Florida employers. Florida Insurance Commissioner Mike Yaworsky last year ordered an average 6.9% reduction in workers’ compensation rates effective Jan. 1.
This story has been updated to include comment from the Florida Chamber of Commerce.
