The state of Florida shakes up the workers’ compensation market

Finding the right workers’ compensation insurance company and coverage is crucial for any business anywhere. While it is not surprising that regulations can change from place to place, what can be news is that there are sometimes major changes within a local market in terms of both regulations and carriers. That’s the case in the current Florida workers’ compensation market, where late 2017 saw some big news and developments.

Insurance regulators in the state of Florida put a popular company into receivership, reasoning that they did not have adequate reserves. Obviously, this is a big problem for an insurance company, which must be able to pay for its policies. That is the point of politics, after all.

For those who are not familiar, receivership is basically a type of corporate bankruptcy. In the corporate world, this may be done to try to restructure a company and avoid liquidation. The objective is to right the company ship without its total dissolution.

In this specific case, the insurer in question is Guarantee Insurance Co., also known as GIC. The company provides workers’ compensation insurance to more than half of the states in the country and is headquartered in Fort Lauderdale.

The Florida Office of Insurance Regulation, or OIR, determined that the company’s assets were insufficient to pay outstanding obligations. This last figure turned out to be more than a quarter of a million dollars.

Of course, insurance is meant to protect businesses against risk, not provide them with more. So this has been an unfortunate turn of events for businesses and business owners facing this situation in Florida. Workers’ compensation insurance in particular is a crucial safeguard as well as a business requirement, and not one you want to get in trouble with.

The state of Florida dictates that non-construction businesses must carry workers’ compensation insurance in Florida if they have four or more full-time or part-time employees. In the construction business, all businesses must have workers’ compensation, while in the agricultural industry, requirements dictate that businesses with six or more regular employees and/or at least 12 temporary employees for more than 30 days must have workers’ compensation insurance.

All of this underscores the need to work with reliable, high-quality Florida workers’ compensation insurance providers. It is always recommended to consult with an experienced local professional in your area who can help answer any questions and ensure you receive the coverage you need at a reasonable price.