Workers’ compensation insurance, commonly known as workers’ comp insurance, provides benefits to employees with an injury or illness. Florida workers’ comp insurance can help pay for their medical costs and replace some of their lost income as they recover from a work-related injury or illness.
Florida Workers’ Comp Coverage
Coverage requirements for Florida’s workers’ comp are dependent on different factors. These factors can include the industry and the number of employees.
- Construction companies with at least one employee need coverage. Corporate officers or limited liability company (LLC) members count as employees.
- Non-construction businesses with at least four employees need coverage. This includes business owners who are corporate officers or LLC members.
- Agricultural businesses with at least six employees need coverage. Coverage is also needed if there are 12 seasonal workers who work more than 30 days during a season but no more than 45 days in a calendar year.
- Out-of-state employers must notify their insurance carrier about working in Florida. Out-of-state employers without coverage must get a workers’ comp policy with a Florida-approved insurance carrier.
- Contractors must ensure subcontractors have required workers’ comp insurance before beginning work on a project.
Proof of coverage, also known as a certificate of insurance, helps a business prove it has workers’ comp coverage in Florida. It also includes essential details about your policy. It helps clients see that your business has the proper coverage. Get a quote to learn more about getting a certificate of insurance for your business.
What’s Covered?
Florida workers’ compensation insurance helps provide benefits to employees who become injured or ill. It can also provide payments to your employee’s beneficiaries if the employee passes away from a work-related accident or illness.
For example, one of your employees injures their back while lifting heavy boxes in the warehouse. A workers’ compensation insurance policy can help cover their medical costs. And it can also replace some of their wages they lost from missing work.
Workers’ comp can also help if your employee gets sick after working with chemicals at your business. This insurance can help cover their medical costs as they recover.
Florida Workers’ Comp Exemption
There are a few Florida workers’ compensation exemptions that are automatically granted. These include sole proprietors and partners. These business entities can still purchase coverage if they file for Election of Coverage with the Division of Workers’ Compensation.
Other exemptions include:
Corporations outside of the construction industry must register with the Florida Department of State, Division of Corporations. An applicant applying for an exemption has to be an officer of the corporation.
Limited liability companies (LLCs) outside of the construction industry must register with the Florida Department of State, Division of Corporations. An applicant must have at least a 10% ownership of the LLC. No more than 10 members of an LLC can be exempt.
For businesses in the construction industry, the eligibility for exemption is different.
Corporations in the construction industry must register with the Florida Department of State, Division of Corporations. An applicant has to be an officer of the corporation and have at least 10% ownership. No more than three officers can be exempt. There is also a $50 application fee.
LLCs in the construction industry must register with the Florida Department of State, Division of Corporations. The applicant has to have at least 10% ownership in the LLC. No more than three members of an LLC can be exempt. There is also a $50 application fee.
Florida Workers’ Compensation Laws & Regulations
There’s plenty to be mindful of when considering the right worker’s comp insurance. Business owners have to be aware of recent laws and rules going into effect. Florida’s workers’ comp laws explain how the system works and details such as:
- Which employers need to carry workers’ comp coverage
- When injured or sick employees receive benefits
- How much a workers’ compensation attorney gets paid
If your business expands to another state outside of Florida, keep in mind that you may have to deal with very different laws and regulations.
Florida’s no-fault workers’ comp statutes designate any work-related injury to receive compensation from insurance coverage. It also allows the employer to avoid lawsuits filed by employees if they get hurt or sick from their job.
Florida Workers’ Compensation Rates
In 2019, the national average monthly cost through Progressive was $85. However, this does not necessarily mean that is what you will pay. Rates vary across businesses because workers’ comp is state-regulated and calculated differently than most other insurances.
Florida Workers’ compensation rates are dependent on a few different factors. Workers’ compensation insurance costs include:
- Insurance premiums
- Payments made under deductibles
- Administrative costs of handling claims
- Making reports to the state and your insurer
What you pay for a workers’ comp policy varies from business to business. Your rate will depend on your business’s specific qualities, including your payroll and claims history.
Searching for cheap workers’ comp insurance?
You’re in business to make money, so you don’t want to overpay for insurance. But how can you get the cheapest Florida workers’ compensation insurance when many factors are out of your control?
The answer is simple. Minimize your risk for a claim. Here are a few tactics that could help:
- Employee training – Properly training your employees on basic job functions could reduce the risk of injury. For example, a restaurant owner might train their kitchen staff on safe food preparation procedures to avoid cuts and burns.
- Safety standards – Educating your employees on safe work practices might prevent slips, falls, and other bodily harm. For example, a manufacturer might educate its workers on proper lifting and carrying techniques, or implement a process for cleaning up spills.
- Property maintenance – Providing a safe and healthy work environment can reduce employee illnesses and injuries. This could include tasks like air duct cleaning, routine building inspections, or snow removal.
Our licensed professionals can help you with your quote. Call us directly or go online. Let us help your small business find the right workers’ compensation insurance policy.