In 2011, Workers Compensation rates in the state of Florida increased by 7.8%. In 2012, those rates increased by an additional 8.9%. Judging by the state of the industry and the fact that nationally, workers compensation insurers are losing 18 cents on every dollar they take in, indications are there will be another rate hike in 2013.
In addition to the rate hike, there are recent and significant changes in the way workers’ compensation premiums will be calculated. These changes are scheduled to be incrementally implemented over the next three years, beginning in 2013. These are some of the most impactful changes to worker’s compensation since 1993 and are likely to inflate your costs . You know the old saying “if you do what you’ve always done, you will get what you’ve always got”? Well, not the case here. If you do what you’ve always done, you are going to get hit with a double whammy!
The good news is that there are strategies available to mitigate the impact of these changes to your business. Business owners that pay attention to these strategies today are going to be ahead of their competition. You don’t have a work comp exposure? Well, think about this. How about those customers that buy your services, what if you were able to help them? If they have more profits that will impact their purchasing decisions along with their ability to pay. How about your suppliers or subcontractors? If their costs are down, so are yours.
The time is right now to review the impact of these changes, develop and implement an effective strategy to manage their effects.