Finding the right carrier and employee insurance coverage is crucial for any business in any location. While it’s no surprise that regulations can change from place to place, it may be a bit of news that sometimes major shakeups take place within a local market, both in terms of regulations and carriers. Such is the case with the current employee insurance market in Florida, where there were significant news and developments at the end of 2017.
Insurance regulators for the state of Florida have placed a popular airline into receivership, citing they lacked sufficient reserves. This is of course a huge problem for an insurance company, who must actually be able to pay out their policies. After all, that is the core of the policy.
For those who are not familiar, receivership is basically a type of corporate bankruptcy. In the business world, this can be done to try to restructure a company and avoid liquidation. The goal is to right the company’s ship without complete dissolution.
In this particular 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 in the country and is based in Fort Lauderdale.
The Florida Office of Insurance regulation, or OIR, determined that the company’s assets were insufficient to pay outstanding liabilities. That last figure came in at more than a quarter of a million dollars.
Insurance, of course, is meant to protect businesses from risk, not to give them 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 something you want to have trouble with.
The state of Florida requires non-construction companies to have workers’ compensation insurance in Florida if they have four or more full-time or part-time employees. In the construction industry, all businesses are required to carry workers’ compensation, while in the agriculture industry, requirements dictate that businesses with six or more permanent employees and/or at least 12 seasonal workers must have workers’ compensation insurance for more than 30 days.
All of this underscores the need to partner with reliable, high-quality occupational injury insurers in Florida. It is always advisable to consult a local, experienced professional in your area who can help answer all your questions and ensure you get the coverage you need at a reasonable cost.
The state of Florida is shaking up workers’ compensation
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