A third consecutive decline in workers' compensation premiums will greet Florida's employers in the New Year after Insurance Commissioner Kevin McCarty signed off on a 13.5 percent rate cut. The rate change will save employers some $445 million, as rates have now dropped by a cumulative 32.6 percent, returning them to levels last seen in the mid-1990s. The new rates will apply to all new and renewal policies as of January 1, 2006.

Employers Benefit

With the prospect of a further rate decrease, employers clearly are benefiting from the reduction in premiums. Manufacturing classes will see an overall average 10.6 percent rate reduction in rates next year, which represents a cumulative decrease of 27.1 percent since the 2003 reforms. Contracting classes will see an 11.3 percent reduction and a cumulative average of 27.7 since the reforms. Office and clerical classes will see a 14.4 percent reduction for a cumulative decrease of 30.2 percent, and goods and services will see a reduction of 14.1 percent for a cumulative decrease of 30 percent. Likewise, miscellaneous classes will see a 17.1 percent reduction for a cumulative decrease of 32.5 percent.