Finding the right carrier and coverage for workers’ compensation insurance is crucial for any business, anywhere. While it is not surprising that regulations can change from place to place, what may be news is that sometimes big upheavals occur within a local market in terms of regulations. and carriers. Such is the case with the current Florida workers’ compensation insurance market, where the end of 2017 saw major news and developments.
Florida state insurance regulators have placed a popular carrier in receivership, citing insufficient reserves. This is obviously a huge problem for an insurance company, which must be able to pay its policies. That is the purpose of politics, after all.
For those who are unfamiliar, receivership is essentially a type of business bankruptcy. In the corporate world, this can be done in an attempt to restructure a business and avoid liquidation. The goal is to right the ship of the company without its complete dissolution.
In this specific case, the carrier in question is Guarantee Insurance Co., also known as GIC. The company provides workers’ compensation insurance to more than half of the states nationwide and is based in Fort Lauderdale.
Regulation from the Florida Office of Insurance, or OIR, determined that the company’s assets were insufficient to pay outstanding obligations. The latter figure was more than a quarter of a million dollars.
Of course, insurance is meant to protect against risk for businesses, not to provide more of it. So it has been an unfortunate turn of events for businesses and business owners facing this situation in Florida. Worker’s compensation insurance, in particular, is a crucial coverage, as well as a business requirement, not one you want to have trouble with.
The state of Florida stipulates that non-construction businesses must have Florida workers’ compensation insurance if they have four or more full-time or part-time employees. In the construction sector, all companies are required to carry workers’ compensation, while in the agricultural sector, the requirements impose on companies with at least six regular employees and / or at least 12 seasonal employees for more than 30 days must have workers’ compensation insurance.
All of this underscores the need to work with trusted, high-quality workers’ compensation insurance providers in Florida. It is always recommended that you consult with an experienced local professional in your area who can help answer any questions you may have and ensure that you receive the coverage you need at a reasonable price.