Florida Office of Insurance Regulation Approves Work Comp Surcharge beginning January 2020
The November 2017 insolvency of Guarantee Insurance Company (GIC) created $144 million in claims liabilities that impacted the Florida Worker’s Compensation Insurance Guaranty Association (FWCIGA). State laws require that licensed property and casualty insurance companies belong to the guaranty associations in every state where they are licensed to do business. More information about the Florida Workers’ Compensation insurance assessment is available on the FWCIGA FAQ page.
The Florida Office of Insurance Regulation approved a 1% assessment to be collected by insurance carriers and to increase customer policy premiums to provide additional funds to cover the FWCIGA liabilities associated with the GIC insolvency. The assessment is effective January 1, 2020 and applies to new and renewal policies in the calendar year of 2020.
Florida PEO Clients Affected
In 2020 businesses in Florida who have partnered with a Professional Employer Organization my see a slight increase in their PEO invoiced amount to cover the increased worker’s compensation insurance premium assessment.