According to a report in the South Florida Business Journal, the severity of workers’ compensation claims are increasing at a higher rate in Florida than the rest of the country. The report cites a study from Aon Risk Solutions, which looked at trends in frequency, severity and overall loss rates related to workers’ compensation. Research shows that the severity of Florida workers comp claims is rising at roughly 3 percent each year, while the severity of claims on average in the United States is rising roughly 2 percent. Furthermore, experts say that the severity and cost of worker’s comp claims could continue to increase dramatically in the near future, especially as legislators await the decisions from the Florida Supreme court that could affect the entire worker’s compensation system.
Industry experts believe that the disparity in the severity of Florida’s worker’s comp claims as opposed to the national average may by the result of increased costs of medical treatment and prescription drugs. Others cite an aging workforce as a large contributing factor. However, while claim severity is increasing more rapidly in the Sunshine State, it seems that claim frequency is dropping in Florida and the rest of the nation.
The Florida workers compensation system has been making a lot of headlines lately as the entire Florida workers’ compensation system is on the brink of change as the Florida Supreme Court is expected to rule on three pivotal Workers’ Comp related cases. The court is hearing arguments regarding the constitutionality of the state’s workers-compensation insurance system, which involves cases being handled through the workers-compensation insurance system instead of through civil lawsuits. The pending outcome of this case and others could have serious implications on the workers comp system, different types of benefits and limits available to employers and employees.
As Florida business owners await the outcome of these decisions, Worker’s Compensation will always remain a necessity for Florida businesses. At Newman Crane Orlando Insurance Agency, we specialize in helping Florida contractors find the business insurance and risk management solutions they need to protect their employees and their assets. Our Orlando Workers Comp coverage will cover your employees in the event of a workplace injury or illness for lost wages, medical expenses, rehabilitation and more. If you are looking for quality Workers Compensation programs at affordable rates, contact us today at (407) 859-3691 to learn more how we can help your operation.