Coverage for workers compensation insurance is crucial for any business in any location. While it's no surprise that regulations may change from place to place, what may be a bit of news is that sometimes large shakeups happen within a local market in terms of both regulations, as well as carriers. That's the case with the current market for Florida workers compensation insurance, where the end of 2017 saw some major news and developments.
Insurance regulators for the state of Florida put a popular carrier into receivership, with the reasoning being that they had inadequate reserves.
This is obviously a huge issue for an insurance carrier, who has to actually be able to pay out on their policies. That is the point of the policy, after all.
For those who are unfamiliar, receivership is basically a type of corporate bankruptcy. In the corporate world, this can be done in order to attempt to restructure
a company and avoid liquidation. The goal is to right the ship of the company without its full 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
the states in the country, and is based in Fort Lauder-dale.
The Florida Office of Insurance regulation, or OIR, determined that the assets of the company were insufficient to pay outstanding obligations. The latter figure worked out to be over a quarter of a million dollars.
Of course, insurance is meant to protect against risk for businesses, not provide them with more of it. So this has been an unfortunate turn of events for the businesses and business owners dealing with this situation in Florida. Workers compensation insurance in particular is a crucial safeguard, as well as a business requirement, and not one you want to be having any issues with.
The state of Florida dictates that non-construction businesses must have workers compensation insurance in Florida if they have four or more full or part-time employees. In the construction business, all businesses are required to carry workers compensation, while in the agricultural industry, requirements dictate that businesses with six or more 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 Florida workers compensation insurance providers. It's always recommended to consult with a local, experienced professional in your area who can help answer any questions, and ensure you receive the coverage you need at a reasonable price.
