Florida Workers' Comp Rates Decreased 4.9% in 2026

Florida's workers' compensation market has been on a sustained positive trend. After years of rate volatility in the 2010s, the state has seen four straight years of decreasing advisory rates — 2023, 2024, 2025, and now 2026. The 2026 decrease of 4.9% is one of the larger single-year reductions in recent memory.

The National Council on Compensation Insurance (NCCI) filed the rate change with the Florida Office of Insurance Regulation (OIR). NCCI serves as Florida's designated rating organization, collecting loss data from all carriers writing workers' comp in the state and filing advisory loss costs that carriers use as the basis for their own rates.

It's important to understand what "advisory loss costs" means: NCCI's filing establishes the base loss cost component of the rate. Each individual carrier then applies a loss cost multiplier (LCM) — which reflects their own expenses and profit margin — to arrive at their final filed rate. So while NCCI's advisory loss costs decreased 4.9% on average, your actual premium change at renewal depends on your specific carrier's LCM and any changes in your own risk profile.

The 2026 rate decrease was broad-based, applying to most Florida class codes. The construction and contracting trades saw meaningful reductions. The table below shows the real FWCJUA manual rates (per $100 of payroll) for 2025 and 2026, sourced from the Florida Workers' Compensation Joint Underwriting Association rate filings.

Rates are FWCJUA (assigned risk) manual rates per $100 of payroll, effective 1/1/2025 and 1/1/2026. Voluntary market carriers typically write below FWCJUA rates. Your actual premium also depends on your experience modification factor (EMR) and the carrier's loss cost multiplier. Source: FWCJUA Rate Schedule.

Low-hazard office and professional service codes (such as clerical code 8810 at $0.105 per $100) also saw decreases, though the dollar impact is smaller given their already-low base rates.

The 2026 rate decrease reflects several positive trends in Florida's workers' compensation market:

Lower claim frequency. The number of workers' comp claims per 100 workers has been declining in Florida for several years. Improved safety training, better personal protective equipment, and greater employer awareness of workplace hazards have all contributed to fewer injuries.

Improved medical cost management. Florida's workers' comp system has benefited from managed care arrangements, fee schedules, and utilization review programs that have helped control medical costs per claim. Medical inflation, while still present, has been partially offset by these cost-management mechanisms.

Favorable loss development. Claims that were reserved in prior years have developed more favorably than expected — meaning the actual cost of those claims came in lower than what was originally estimated. This favorable development reduces the loss cost base for future rate filings.

Reduced litigation. Florida's workers' comp system has seen a reduction in attorney involvement in routine claims, which has lowered the cost of resolving disputes and reduced the overall cost per claim.

Together, these factors have allowed NCCI to file for — and the OIR to approve — a meaningful rate reduction for Florida employers.

If your workers' comp premium increased at renewal despite the statewide rate decrease, there are several possible explanations:

Your experience modification factor (EMR) increased. The EMR is a multiplier applied to your base rate based on your claims history compared to similar businesses. If you had one or more claims in the prior three years, your EMR may have increased — potentially offsetting or exceeding the benefit of the rate decrease. An EMR of 1.20, for example, adds 20% to your premium on top of the base rate.

Your payroll increased. Workers' comp premiums are calculated as a rate per $100 of payroll. If your business grew and your payroll increased, your total premium will be higher even if the rate per $100 went down.

Your class codes changed. If your insurer reclassified any of your employees into a higher-rated class code — either at renewal or as a result of a premium audit — your premium may have increased.

Your carrier's loss cost multiplier (LCM) increased. Individual carriers set their own LCMs. If your carrier raised its LCM to reflect its own expense or profit needs, your rate could increase even if NCCI's advisory loss costs went down.

If your premium increased at renewal and you're not sure why, contact Bright Coast Insurance. We can review your renewal, identify the cause of the increase, and shop your coverage with multiple carriers to find a better rate.

Here are the steps Florida employers should take to ensure they're benefiting from the 2026 rate decrease:

1. Review your renewal declarations page. Your renewal should show the class codes, rates, and payroll used to calculate your premium. Compare the rates to the prior year. If the rates didn't decrease, ask your agent why.

2. Check your experience modification factor. Your EMR is calculated by NCCI and sent to your insurer. Ask your agent for your current EMR and how it compares to last year. If your EMR increased, ask what claims drove the increase and what you can do to improve it before the next calculation.

3. Verify your class codes are correct. Class codes should reflect the actual work your employees perform. If any codes seem incorrect, request a classification review. Being in the right code — not just the lowest code — is important for audit compliance.

4. Shop your coverage. Different carriers apply different loss cost multipliers. Even with the same NCCI advisory loss costs, one carrier might charge 20% more than another for the same risk. An independent agent like Bright Coast Insurance can quote your coverage with multiple carriers and identify the best value.

5. Consider pay-as-you-go. Pay-as-you-go workers' comp calculates your premium based on actual payroll each pay period, eliminating large year-end audit adjustments. If your payroll fluctuates seasonally, this can be a significant cash flow advantage.