When the Castellanos v. Next Door Company case from theFlorida Supreme Court came down in April 2016,striking down caps on fees for attorneys who represent injuredworkers, uncertainty abounded. The ruling was hotly anticipated,with attorneys on both sides of the spectrum, businesses andinsurance companies all speculating not only as to what the rulingwould ultimately be but also as to what practical effect it wouldhave on businesses, the insurance industry and workers'compensation claims.

In December 2016, some of that uncertainty was removed, when a14.5% increase in premiums for workers' compensation insurance forbusinesses was effectuated (with 10.1% of this increase due to theCastellanos case alone). This substantial increaseperturbed many, as the NationalCouncil of Compensation Insurance (NCCI), an organization thatfiles recommended rates on behalf of insurance companies, hassubsequently admitted that the 14.5% rate increase was not based onany relevant data or a quantitative analysis, but was rather basedon market projections.

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