Workers' Compensation Rates Are Filing Lower in Florida. What Does That Actually Mean for Your Premium?

Florida Insurance Commissioner Mike Yaworsky issued a Final Order approving a statewide overall rate decrease of 6.9% for workers' compensation policies. The real question for business owners is: Does a lower filed rate mean my premium will decrease?

Not necessarily.

Understanding the difference between rate and premium is essential to setting realistic expectations and making smart renewal decisions.

Rate vs. Premium: Two Very Different Things

A rate is the base cost assigned to a classification code per $100 of payroll. These rates are filed at the state level and then applied by carriers.

A premium is the final amount your business pays. That number is influenced by multiple variables beyond the filed base rate, including:

• Total payroll by classification
• Changes in employee roles or job duties
• Experience modification factor
• Recent claims activity
• Schedule credits or debits

A filed decrease reduces one component of the calculation. It does not control the entire outcome.

Why Your Premium Could Still Increase

Even in a declining rate environment, premiums can rise if:

• Payroll has increased due to growth or wage adjustments
• A claim impacts your experience modification factor
• Employees are assigned to higher rated classification codes
• A carrier applies underwriting debits

For example, a 6% rate decrease can be offset by a 10% payroll increase. The result is still a higher overall premium.

What Business Owners Can Do Now

Instead of focusing on whether premiums will drop, focus on the levers you can control:

1. Review Classification Codes

Misclassified employees can significantly impact cost. Confirm that job duties align with assigned codes. Small corrections can produce meaningful savings.

2. Audit Payroll Projections

Overstated payroll estimates inflate upfront premiums. Make sure projections reflect realistic expectations.

3. Manage Claims Proactively

Even one claim can influence your experience mod for years. Strong return to work programs and safety protocols matter.

4. Verify Your Experience Mod

Errors happen. Reviewing your worksheet for accuracy can prevent overpayment.

5. Strengthen Safety Culture

Carriers reward businesses that demonstrate measurable loss control practices. Documented safety meetings, training logs, and formal procedures improve your underwriting profile.

Workers' compensation is based on a formula. When the base rate improves, proactive risk management compounds the benefit.

Want to talk specifically about your Workers’ Compensation policy? Reach out to one of our licensed Insurance Professionals.