One of the most common questions raised by lawmakers, regulators, employers, and carriers is, how do the premiums paid by Floridians compared with other states when it comes to property and casualty lines of insurance? This is especially true when it comes to workers' compensation, whereby the absence of a federal workers' compensation law leaves each state to establish its own system and performance standards. As a result, there are widespread differences in how each state calculates injured workers' indemnity benefits, establishes a health care benefit delivery system, and establishes rules to informally and formally resolve legal disputes.

Along with the regulatory differences from state to state, there are also many other factors that go into calculating employers' premiums. Some of these factors include the demographic makeup of the employer's workforce, the state's economic base, and employer's own loss experience. Florida attracts a growing population due to the warm weather that appeals to retirees and others, while offering numerous jobs in the retail and service sectors. As a result, there is a high demand in the state for new housing, retail shopping centers, and other community needs, such as hospitals and schools.

Along with the differences in demographics and employers' loss trends as translated into experience modification factors, there are also other aspects of a state's makeup that can influence employers' workers' compensation costs. For example, Florida's weather allows general contractors to build homes and other buildings year round. By comparison, some states build fewer homes and other buildings due to the cold weather. However, some northern states have a substantial manufacturing base to offset the low construction combined-loss ratios.