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EXHIBIT 10(W)
                           FPIC INSURANCE GROUP, INC.

                              EMPLOYMENT AGREEMENT

         This Employment Agreement is made and entered into as of the 1st day of
May 2000 by and between FPIC Insurance Group, Inc., a Florida corporation, with
its principal place of business at 225 Water Street, Suite 1400, Jacksonville,
Florida 32202 (hereinafter referred to as "Employer"), and GARY M. DALLERO, an
individual presently residing at 54 Magnolia, 9800 Touchton Road, Apartment
#221, Jacksonville, Florida 32246 (hereinafter referred to as "Employee").

                                   WITNESSETH:

         WHEREAS, Employer desires to retain the services of Employee as the
Senior Vice President-Operations of Employer, and Employee desires to perform
such services for Employer on the terms and conditions set forth herein;

         WHEREAS, Employee represents and Employer acknowledges that Employee is
fully qualified, without the benefit of any further training or experience, to
perform the responsibilities and duties, with commensurate authorities, of the
position of Senior Vice President-Operations of Employer; and

         WHEREAS, Employee agrees to devote Employee's full time and business
effort, attention and energies to the diligent performance of Employee's duties
hereunder;

         NOW, THEREFORE, Employer and Employee, intending to be legally bound,
covenant and agree as follows:

         1.       TERMS OF EMPLOYMENT.

                  (a)      Employee's employment hereunder shall be for a term
                           beginning May 1, 2000 and ending April 30, 2002,
                           which term shall be extended for an additional twelve
                           months at the end of each twelve month period upon
                           Employer's Board of Directors (from time to time
                           herein referred to as the "Board"), or a committee
                           thereof, giving notice to Employee prior to the end
                           of such twelve month period that it wishes to extend
                           this Employment Agreement for an additional twelve
                           month period.

                  (b)      In the event Employer does not give notice to
                           Employee prior to the end of any twelve month period
                           that it wishes to extend this Employment Agreement as
                           specified in subparagraph 1(a) above, Employee may
                           voluntarily terminate Employee's employment under
                           this Employment Agreement by thereafter giving at
                           least ninety (90) days written notice to Employer.
                           Following the effective date of such voluntary
                           termination, Employee shall continue to receive
                           Employee's annual salary, payable as immediately
                           prior to termination, plus all benefits to which
                           Employee is then entitled under subparagraph 2(e)
                           below, for the balance of the term of this Employment
                           Agreement; provided, that if Employer is unable to
                           continue to provide any such benefits to

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                           Employee at substantially the same cost it would
                           incur were Employee still employed by Employer (the
                           "Benefit Cost"), Employer shall have the right to pay
                           Employee the Benefit Cost of such benefits in lieu of
                           continuing to provide such benefits to Employee. It
                           is provided, however, if Employee directly or
                           indirectly engages in or acts as an employee of or
                           consultant for any trade or occupation that is in
                           competition with Employer, such salary and benefits
                           shall thereupon terminate.

                  (c)      The duties of Employee shall be as determined by the
                           Board in accordance with this Employment Agreement
                           and the By-Laws of Employer in effect from time to
                           time. Without limiting the generality of the
                           foregoing, Employee shall report to and advise the
                           Board regarding the management and operation of
                           Employer's business. Employee agrees to devote
                           Employee's full time business efforts, attention and
                           energies to the diligent performance of Employee's
                           duties hereunder and will not, during the term
                           hereof, accept employment, full or part-time, from
                           any other person, firm, corporation, governmental
                           agency or other entity that, in the reasonable
                           opinion of the Board, would conflict with or detract
                           from Employee's capable performance of such duties,
                           provided, however, Employee may devote reasonable
                           amounts of time to activities of a public service,
                           civic, or not-for-profit nature.

         2.       COMPENSATION AND EXPENSES.  Employer shall pay, or provide,
and Employee shall accept as full consideration for the services to be rendered
hereunder, and as a reimbursement or provision for expenses incurred by
Employee, the following:

                  (a)      An annual salary of $150,000 payable in twenty-four
                           (24) equal payments during each annual period of this
                           Employment Agreement; provided, however, that
                           effective January 1 of each year beginning in 2001,
                           Employee's annual compensation shall be increased in
                           accordance with the provision for salary increases
                           set forth in paragraph (b) below. Employee's minimum
                           total compensation, which in no event may be reduced
                           in whole or in part, shall be the annual salary at
                           the rate of compensation received by Employee for any
                           given period of time or at the time of Employee's
                           termination.

                  (b)      Annual performance reviews will determine annual
                           salary increases to which Employee becomes entitled,
                           effective January 1, 2001, based upon Employer's then
                           current Compensation Program.

                  (c)      Incentive compensation payable with respect to each
                           year beginning with the year 2000 based on Employee's
                           individual performance and the performance of
                           Employer for such year

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                           pursuant to Employer's then current Executive
                           Incentive Compensation Program.

                  (d)      Any additional compensation payable by resolution of
                           the Board for outstanding performance.

                  (e)      Such benefits as may be made available from time to
                           time to senior management employees of Employer, but
                           at no time less than: (i) an automobile allowance of
                           $400 per month and (ii) initiation fees, dues and
                           assessments of membership in a club of Employee's
                           choice, as reasonably approved by Employer's Board or
                           an appropriate committee thereof.

         3.       EXPENSES.  Employer agrees to reimburse Employee for
ordinary and necessary expenses incurred by Employee in performing services for
Employer pursuant to the terms of this Employment Agreement, in accordance with
established corporate policies and legal requirements.

         4.       TERMINATION.  Unless the employment of Employee previously
has been terminated pursuant to subparagraph 1(b), this Employment Agreement may
be terminated in the manner set forth in subparagraphs (a) through (f) below.

                  (a)      VOLUNTARY TERMINATION BY EMPLOYEE.

                           Employee may terminate this Employment Agreement at
                           any time by giving at least ninety (90) days written
                           notice to Employer, with no further obligation on
                           Employer's part under this Agreement after the
                           effective date of such termination.

                  (b)      VOLUNTARY TERMINATION BY EMPLOYER.

     Employer may terminate this Employment Agreement at any time for any reason
     sufficient to it, by act of its Board. Such termination shall be
     immediately effective. Following such voluntary termination, Employee shall
     continue to receive Employee's annual salary, payable as immediately prior
     to termination, together with any benefits accrued to the date of
     termination, plus all benefits to which Employee is then entitled under
     subparagraph 2(e) above, for the balance of the then current Employment
     Agreement; provided, that if the Employer is unable to continue to provide
     any such benefits to Employee at substantially the Benefit Cost, Employer
     shall have the right to pay Employee the Benefit Cost of such benefits in
     lieu of continuing to provide such benefits to Employee. It is provided,
     however, if Employee directly or indirectly engages in or acts as an
     employee of or consultant for any trade or occupation that is in
     competition with Employer, such salary and benefits shall thereupon
     terminate.

                  (c)      PERMANENT DISABILITY OF EMPLOYEE.

     If Employee has been, for substantially all the normal working days during
     three (3) consecutive months, unable to perform Employee's responsibilities
     and duties and to exercise Employee's authorities in a satisfactory manner
     due to mental or physical disability, then Employee may be deemed
     "permanently disabled," and Employee's employment may be terminated at the
     election of the Board. Any determination of permanent disability made by
     Employer shall be final and conclusive. In the event that Employer deems
     Employee "permanently disabled," Employee shall be entitled to
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     receive the unpaid balance of Employee's annual salary, together with
     other accrued benefits pursuant to subparagraph 2(e) above to the date
     of the determination of being permanently disabled, payable as
     immediately prior to termination for the remaining term of this
     Employment Agreement, less any amount received by Employee under any
     Employer-provided long term disability coverage and/or program;
     provided, that if Employer is unable to continue to provide any such
     benefits to Employee at substantially the Benefit Cost, Employer shall
     have the right to pay Employee the Benefit Cost of such benefits in
     lieu of continuing to provide such benefits to Employee. It is
     provided, however, if Employee directly or indirectly engages in or
     acts as an employee of or consultant for any trade or occupation that
     is in competition with Employer, such salary and benefits shall
     thereupon terminate.

                  (d)      DEATH OF EMPLOYEE.

                           This Employment Agreement shall terminate on the date
                           of Employee's death, and Employer shall pay, in a
                           lump sum, to the estate or personal representative of
                           Employee the unpaid balance of Employee's annual
                           salary, together with other accrued benefits under
                           subparagraph 2(e) above, to the date of death.

                  (e)      TERMINATION FOR CAUSE.

                           Employer's Board may terminate this Agreement for
                           Cause (as defined below), but only after a written
                           notice specifying the Cause has been submitted to
                           Employee. Employee shall be granted a reasonable
                           opportunity to respond to the notice, in writing, and
                           in an appearance before the Board. A determination by
                           the Board to terminate this Agreement for Cause may
                           be made at a meeting of the Board at which a quorum
                           is present and by a vote of at least a majority of
                           the entire then current membership of the Board. If
                           Employer terminates this Employment Agreement for
                           Cause under this subparagraph, Employer shall not be
                           obligated to make any further payments or provide any
                           further benefits under this Employment Agreement
                           other than amounts accrued at the time of such
                           termination. "Cause" for the purposes of this
                           Agreement consists of the following:

                           (i)      Employee's commission of dishonest acts,
                           fraud, misappropriation, or embezzlement affecting
                           Employer;

                           (ii)     Employee's commission of any felony under
                           state or federal law; or

                           (iii) the failure or refusal of Employee to comply
                           with any reasonable lawful policy, directive or
                           instruction of the Board, consistent with
                           subparagraph l(c) hereof.

                  (f)      CONSTRUCTIVE DISCHARGE.  Employee may terminate
                           this Employment Agreement in the event of
                           Constructive Discharge (as defined below) by
                           providing written notice to Employer within three
                           months after the occurrence of such event, specifying
                           the event relied upon for a Constructive Discharge.
                           "Constructive Discharge" shall mean any (i) material
                           change by Employer of Employee's position to an
                           inferior position from that in effect on the date of
                           this Agreement, (ii) assignment, reassignment, or
                           relocation by Employer of Employee without Employee's
                           consent to another place of employment more than 50
                           miles from

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                           Employee's current place of employment, (iii)
                           liquidation, dissolution, consolidation or merger of
                           Employer, or transfer of all or substantially all of
                           its assets, other than a transaction or series of
                           transactions in which the resulting or surviving
                           transferee entity has, in the aggregate, a net worth
                           at least equal to that of Employer immediately before
                           such transaction and expressly assumes this Agreement
                           and all obligations and undertakings of Employer
                           hereunder, or (iv) reduction in Employee's base
                           salary or target bonus opportunity. Following
                           termination of Employee's employment in the event of
                           a Constructive Discharge, Employee shall continue to
                           receive Employee's annual salary, payable as
                           immediately prior to termination, plus all benefits
                           to which Employee is then entitled under subparagraph
                           2(e) above, for the balance of this Agreement;
                           provided, that if Employer is unable to continue to
                           provide any such benefits to Employee at
                           substantially the Benefit Cost, Employer shall have
                           the right to pay Employee the Benefit Cost of such
                           benefits in lieu of continuing to provide such
                           benefits to Employee. It is provided, however, if
                           Employee directly or indirectly engages in or acts as
                           an employee of or consultant for any trade or
                           occupation that is in competition with Employer, such
                           salary and benefits shall thereupon terminate.
                           Employer and Employee, upon mutual agreement, may
                           waive any of the foregoing provisions that would
                           otherwise constitute a Constructive Discharge. Within
                           ten days of receiving such written notice from
                           Employee, Employer may cure the event that
                           constitutes a Constructive Discharge.

                  (g)      Upon any termination of this Agreement, Employee
                           shall immediately turn over to Employer all of
                           Employer's property, both tangible and intangible. To
                           the extent that such Employer's property shall
                           constitute a benefit to Employee under this
                           Agreement, Employee shall receive from Employer the
                           value of that benefit for the remaining term of this
                           Agreement.

                  (h)      Upon any termination of this Agreement, regardless of
                           the reason for termination, it is agreed:

                           (i) INDUCING EMPLOYEES OF EMPLOYER TO LEAVE. Any
                           attempt on the part of Employee to induce others to
                           leave Employer's or any of its affiliates' employ, or
                           any efforts by Employee to interfere with Employer's
                           or any of its affiliates' relationships with other
                           employees, would be harmful and damaging to Employer.
                           Employee expressly agrees that during the term of
                           this employment and for a period of two (2) years
                           thereafter, Employee will not, in any way, directly
                           or indirectly: (A) induce or attempt to induce any
                           employee to terminate his or her employment with
                           Employer or any affiliate of Employer; (B) interfere
                           with or disrupt

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                           Employer's or any of its affiliates' relationship
                           with other employees; or (C) solicit, entice, take
                           away or employ any person employed by Employer or any
                           affiliate of Employer.

                           (ii) CONFIDENTIALITY. Employee agrees not to, without
                           prior written consent of Employer, divulge to others,
                           or use, for Employee's own benefit or for the benefit
                           of others, any intellectual property, trade secrets
                           or confidential or proprietary information or data of
                           or regarding Employer or any of its affiliates,
                           including without limitation, the contents of
                           advertising, customer lists, information regarding
                           customers or their customers, programming methods,
                           business plans, strategies, financial statements,
                           copyrights, correspondence or other records of or
                           regarding Employer or any of its affiliates, except
                           to the extent to which such information is required
                           by law to be disclosed to others.

                           (iii) REMEDY. Employee acknowledges that Employee
                           will be conversant with Employer's affairs,
                           operations, trade secrets, customers, customers'
                           customers and other proprietary information data;
                           that Employee's compliance with the provisions of
                           this subparagraph (h) is necessary to protect the
                           goodwill and other proprietary rights of Employer;
                           and that Employee's failure to comply with the
                           provisions of this subparagraph (h) will result in
                           irreparable and continuing damage to Employer for
                           which there will be no adequate remedy at law. If
                           Employee shall fail to comply with the provisions of
                           this subparagraph (h), Employer (and its respective
                           successors and assigns) shall be entitled to (A)
                           cease making any further payments or providing any
                           further benefits to Employee and (B) injunctive
                           relief and such other and further relief as may be
                           proper and necessary to ensure such compliance.

                           (iv) MITIGATION. In no event shall Employee be
                           obligated to seek other employment or to take other
                           action by way of mitigation of the amounts payable to
                           Employee under any of the provisions of this
                           Agreement.

         5.       EMPLOYMENT SECURITY.

                  (a)      If Employer suffers from any natural or manmade
                           disaster, work stoppage, civil disobedience, act of
                           war, or any other emergency condition beyond
                           Employee's control, the term of this Employment
                           Agreement shall remain in full force and effect as if
                           such event had not taken place.

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                  (b)      In the event of the merger, consolidation or
                           acquisition of Employer with or by any other
                           corporation, corporations or other business entities,
                           the sale of Employer or a major portion of its
                           assets, or of its business or good will or any other
                           corporate reorganization involving Employer, this
                           Employment Agreement shall be assigned and
                           transferred to the successor in interest as an asset
                           of Employer and the assignee shall assume Employer's
                           obligations hereunder, and Employee agrees to
                           continue to perform Employee's duties and obligations
                           hereunder. Failure to assign this Employment
                           Agreement prior to any of the events set forth in
                           this subparagraph 5(b) will obligate Employer to
                           fulfill the terms and conditions hereof prior to
                           consummating the applicable event.

         6. ARBITRATION. In the case of any dispute or disagreement arising out
of or connected with this Agreement, the parties hereby agree to submit such
disputes or disagreements to the American Arbitration Association within ninety
(90) days of such dispute or disagreement for resolution by a panel of three
arbitrators designated by the American Arbitration Association. The panel of
arbitrators shall be instructed to render their decision within one hundred
twenty (120) days of the initial submission of the dispute or disagreement to
them. Any decision or award by such arbitration panel shall be final and
binding, and except in a case of gross fraud or misconduct by one or more of the
arbitrators, the decision or award rendered with respect to such dispute or
disagreement shall not be appealable.

         7.       MISCELLANEOUS.

                  (a)      All notices, requests, demands, or other
                           communications hereunder shall be in writing, and
                           shall be deemed to be duly given when delivered or
                           sent by registered or certified mail, postage
                           prepaid, to Employee's last home address as provided
                           to and reflected on the records of Employer and to
                           Employer when personally delivered to Employer's
                           Secretary or when sent by registered or certified
                           mail, postage prepaid, to such officer.

                  (b)      Employer hereby agrees that no request, demand or
                           requirement shall be made to or of Employee that
                           would violate any federal or state law or
                           regulations.

                  (c)      Should any valid federal or state law or final
                           determination of any administrative agency or court
                           of competent jurisdiction affect any provision of
                           this Employment Agreement, the provision so affected
                           shall be automatically conformed to the law or
                           determination; otherwise, this Employment Agreement
                           shall continue in full force and effect.

                  (d)      This Employment Agreement is made and entered into in
                           the State of Florida and its validity and
                           interpretation, and the performance

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                           by the parties hereto of their respective duties and
                           obligations hereunder, shall be governed by the laws
                           of the State of Florida and of the United States of
                           America.

                  (e)      This Employment Agreement constitutes the entire
                           agreement between the parties respecting the
                           employment of Employee, there being no
                           representations, warranties or commitments except as
                           set forth herein.

                  (f)      This Employment Agreement may be amended only by an
                           instrument in writing executed by the parties hereto.

         IN WITNESS WHEREOF, the parties hereto have executed this Employment
Agreement as of the day and date first set forth above.




Employee:                              FPIC Insurance Group, Inc.


                                       By
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Gary M. Dallero                              William R. Russell
                                             President and Chief
                                             Executive Officer


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Witness                                Attest