What's Happening?
Florida's insurance commissioner has approved a 6.9% average decrease in workers' compensation rates for 2026, marking the ninth consecutive year of rate cuts. This reduction applies to new and renewal
policies starting January 1. While the decrease is seen as beneficial for most businesses, concerns have been raised by the roofing industry, which faces challenges due to insurers' reluctance to cover high-risk professions at lower rates.
Why It's Important?
The rate cut is significant for Florida's economy, potentially reducing operating costs for businesses and encouraging investment. However, the roofing industry may face increased premiums, affecting small businesses and potentially leading to fewer insurance options. This situation highlights the balance between cost savings for businesses and the need for adequate coverage in high-risk industries.
What's Next?
The roofing industry may need to explore alternative insurance options, such as professional employer organizations or the assigned risk market, which could carry stigmas and administrative challenges. Regulators may need to address these concerns to ensure that high-risk professions are adequately covered without imposing excessive costs on small businesses.
