Devin Herz can make posters, postcards, banners and business cards.

Want he wants to make is smaller insurance payments.

The owner of Media FX, a printing company based in Tampa, has seen his property insurance bill rise about $100 a month during the past 12 months. Those increases have pushed his annual insurance bill to more than $7,600 - a lot more than he had planned.

The rising cost of property insurance won't put Herz's nine-employee firm out of business, but it is taking money out of his budget for marketing and new materials. Also, he's hesitant to raise prices because printing is a competitive business. Plus, he's got a reputation for affordability to maintain: His company's Web site is weprintcheap.com.

"Every dime counts, being in a small business," he said. "It all eats away at the bottom line."

With online advertising, "$100 a month can probably turn you on to 10 new prospects."

Herz's experience reflects a trend that's challenging many local businesses that own their own real estate: Rising prices for property insurance are pushing up the cost for doing business. The state's new insurance law, passed with much fanfare in Tallahassee last month, promises some relief for these commercial property owners - but not nearly as much as it does for homeowners. What's more, some experts wonder whether the new law might hurt Florida businesses by exposing the entire state economy to more risk.

"There was not a lot in the current legislation to assist small business at this time, but I'm hopeful that in the regular legislative session, there will be time to address commercial properties," said Lee Arnold, who is CEO of the Arnold Cos., a commercial real estate services firm, as well as a member of the Property & Casualty Insurance Reform Committee that former Gov. Jeb Bush assembled last year to study the state's insurance problems.

For local businesses such as Media FX, property insurance prices are rising at a time when many other expenses, such as health care for employees and property taxes, are also escalating.

Allen Douglas, the Florida director for the National Federation of Independent Businesses, says the entire state suffers when small businesses are squeezed.

Large corporations and the government rely on smaller businesses as contractors, suppliers and consultants, he said. "Every single person in the state uses small businesses."

The federation is conducting a survey of small business owners, and "many of them right now are considering closing their doors or leaving the state," Douglas said.

It will be several weeks before the organization is ready to share the results, but it's already evident that the number of businesses affected by rising costs is "enormous," he said.

"Most of our businesses … are run mostly like you'd run your family: The margins are tight," he said. "They're making a living, but they're not getting rich by any means."

The new insurance bill is clearly written to appease residential real estate owners. In fact, the first line after the 10-page-long title begins with "Whereas, homeowners in the State of Florida are struggling under increased insurance costs and increased housing prices …".

Commercial Changes

However, the 176-page document contains some changes designed to help owners of commercial properties, either through attempting to lower prices or increase the availability of insurance.

One of the most important changes is that Citizens Property Insurance Corp., the state-run agency that was created to provide coverage to homeowners who were unable to receive it from other companies, will now be able to write policies on commercial buildings, such as stores and warehouses.

Previously, Citizens could only cover commercial buildings in designated coastal zones. Outside of those areas, commercial property owners that couldn't find coverage from insurance companies had just one option: the state's Property and Casualty Joint Underwriting Association.

The JUA doesn't insure buildings valued at more than $1 million.

Other provisions in the new law promise to bring down Citizens' prices - a benefit for both commercial and residential property owners.

Brian Flaherty, CEO of Brico Electric in Clearwater, calls the new insurance law "a step in the right direction" but said he thinks more reforms are necessary.

The new law "should give us immediate relief," he said.

Flaherty said he has been unable to find windstorm coverage for his company's two warehouses in downtown Clearwater. As a result, he's selling one of the factories even though he would prefer to keep it as a long-term investment.

Flaherty's experience isn't unique.

"There's a huge problem in insurance writing to businesses right now: No one wants to write it," said Elizabeth Travis, owner of East Bay Insurance in Apollo Beach.

"Not too long ago, I was trying to place coverage for a client I had had for 20 years - never had a loss," she said. "I couldn't find anyone willing to write any part of it."

The Bigger Picture

Keith Bricklemyer, a Tampa lawyer who works with commercial property owners and developers, agrees that some parts of the new insurance law will benefit small businesses and property owners. However, he agrees with critics who say the new system will leave Florida vulnerable to massive financial losses if the state is battered by hurricanes in 2007.

"I think that everybody has some level of concern about whether it's fiscally conservative to do what we did," he said.

Arnold, the local businessman who sat on the insurance reform committee, said he would have preferred to see new insurance regulators that encourage more competition among insurance companies instead of forcing those companies to compete against a state-run agency. He also touts the need for a national system to deal with catastrophic events, which he said would protect Florida's budget and economy in the case of a massive hurricane.

"A short-term solution for insurance is not a solution for the state of Florida," he said.

Back at Media FX, Herz is doing his best to make sure the rising cost of doing business doesn't slow his company's growth.

Media FX bought its building, a one-story beige brick building on North 16th Street, in May 2005 for $289,000. Previously, Herz ran the firm out of his 600-square-foot apartment in south Tampa. Before that, he printed bar and club fliers in his University of Tampa dorm room and distributed them in Ybor City.

"We're really trying to do some good for the economy," he said. "We're looking to grow."

Reporter Dave Simanoff can be reached at (813) 259-7762.