Florida Approves Ninth Straight Workers’ Comp Rate Cut — But Not Everyone Is Celebrating

FL WC Rate Cuts 2026

Insurance Journal – Online Article – November 18, 2025 – Florida Workers Compensation Rate Decrease 2026

Florida employers will see another drop in workers’ compensation insurance costs in 2026. The state’s insurance commissioner approved a 6.9% average rate decrease, marking the ninth consecutive year of reductions in the voluntary market.

The rate cut will apply to new and renewal policies starting January 1, 2026, and reflects trends seen across the country: fewer workplace injuries and lower medical costs.

“This rate decrease directly translates to reduced operating costs for businesses,” said Commissioner Michael Yaworsky, noting that the change should encourage “investment and growth throughout Florida’s economy.”

Why Florida Rates Keep Falling

The National Council on Compensation Insurance (NCCI), which filed the proposed reduction, based its recommendation on 2022–2023 loss data. Like many states, Florida has experienced:

Declining injury frequency across most job classifications
Reduced medical spending per claim
Stronger workplace safety programs

Since 2003, when lawmakers made major reforms to Florida’s workers’ compensation system, overall rates have fallen by 85%.

In national rankings, Florida now sits among the lowest-cost states, ranking 30th (10th from the bottom) in workers’ comp insurance costs, according to the Oregon Department of Consumer and Business Services.

Why Some Industries Are Pushing Back

While the rate cuts are good news for many employers, some industry leaders are sounding the alarm — especially in high-risk professions.

At an October 21 public hearing, Mark Askins, CEO of BrightFund (the workers’ comp program for the Florida Roofing and Sheet Metal Contractors Association), warned that continued cuts could backfire.

“The underwriters don’t feel they can get the necessary premium to pay for loss costs over time,” Askins said. “Carriers are deciding it’s no longer viable to do business in certain high-risk class codes.”

He noted that fewer insurers are willing to cover high-risk jobs, such as roofing, and those that remain are raising minimum premiums — sometimes to $25,000 or more per employer.

For small contractors, that’s a steep price. Many may be forced into the assigned risk market or to use professional employer organizations (PEOs) to secure coverage.

But assigned-risk policies come with challenges — including more paperwork, stricter oversight, and what Askins called a “scarlet letter” for employers hoping to return to the standard market.

A Delicate Balancing Act

Regulators did not respond directly to Askins’ concerns at the hearing, but his comments underscore a growing divide in Florida’s workers’ comp landscape:

Large employers are benefiting from historically low premiums.
Small and high-risk businesses face dwindling carrier options and tighter underwriting.

Florida’s 2026 reduction follows several years of rate cuts:

1% decrease in 2025 (the smallest in nearly a decade)
15.1% cut in 2024
8.4% reduction in 2023

While the overall trend reflects improved safety and lower claims, critics warn that overly aggressive rate reductions could eventually limit competition — and make it harder for certain industries to insure their workers.

RescueMeds’ Perspective

At RescueMeds, we see how workers’ compensation trends directly affect patient care and access. Lower insurance costs can boost business confidence, but they must not come at the expense of injured workers’ benefits, timely treatment, or pharmacy access.

As more states follow Florida’s lead, policymakers must balance cost savings with care delivery. Injured workers deserve a system that’s efficient — but also fair, responsive, and sustainable.

After all, a strong economy starts with a healthy workforce.

Rescuemeds