Florida Workers’ Comp Rates Have Fallen Nearly 60% — So Why Doesn’t Your Premium Feel 60% Lower?

Florida employers may be getting more good news on workers’ compensation.

A proposed 7.4% average rate decrease for 2027 would mark the 10th consecutive year of workers’ compensation rate reductions in Florida.

When those annual reductions are compounded, statewide average workers’ compensation rates would be roughly 58% lower than they were before this 10-year run began.

That’s a remarkable trend.

But if you own a construction company, you might be thinking:

“If rates are down nearly 60%, why doesn’t my workers’ comp premium feel 60% cheaper?”

That’s a very good question.

Your Rate Is Only Part of the Equation

Workers’ compensation premium isn’t determined by the statewide rate alone.

Think of it this way:

Payroll × Classification Rate × Experience Modification + Other Factors = Your Premium

So while Florida’s underlying rates have been declining, several other things may have been moving in the opposite direction.

Your payroll has increased.

If your company has grown, hired more employees, increased wages, or simply experienced wage inflation, you may have substantially more payroll today than you did several years ago.

A lower rate applied to a much larger payroll doesn’t necessarily produce a lower premium.

Your workforce may have changed.

This is especially important in construction.

The type of work your employees perform determines their workers’ compensation classification. A company adding employees in higher-hazard classifications can see its overall workers’ comp costs rise even while Florida’s average rates are falling.

Your experience modification matters.

Your Experience Modification Rate — commonly called your EMR or experience mod — can significantly affect what you actually pay.

Two contractors with similar payroll and classifications can pay very different premiums because of their claims experience.

And for contractors, an unfavorable mod can have consequences beyond insurance costs. It may also affect the company’s ability to qualify for certain projects.

Claims still matter.

Florida’s statewide loss experience may be improving, but your individual company’s claims history still matters.

Frequency, severity, return-to-work practices, safety programs and claims management can all influence your long-term workers’ compensation costs.

Audits and subcontractors can change the final number.

Construction companies have another layer of complexity.

Uninsured or improperly insured subcontractors, certificates of insurance, payroll changes and classification issues discovered during an audit can result in additional premium — sometimes substantially more than the business expected.

So What Should Employers Be Looking At?

Instead of asking only:

“Did workers’ comp rates go down?”

A better question is:

“Is my company taking full advantage of the workers’ comp market we’re in?”

That means looking at the entire picture — classifications, payroll, experience modification, claims, safety, subcontractor exposure, carrier options and how your workers’ compensation program is structured.

After nearly a decade of falling rates, simply renewing the same program every year without reviewing those factors could mean missing opportunities.

For Florida employers — and particularly contractors — this is a good time to take a closer look.

Because a lower statewide rate doesn’t automatically mean a lower workers’ comp bill.

But it should give you a reason to ask whether yours could be better.

Bridgely Key Options

Helping construction companies navigate workers’ compensation, PEO and workforce solutions.