Being an entrepreneur in Florida, where business is increasingly competitive, is a huge undertaking. However, your impressive enterprise acumen isn’t the only main skill required to ensure your profits. A workers comp insurance Florida policy can help you safeguard your most important asset – employees – while protecting you from liability.
The state of Florida requires workers’ comp for both part-time and full-time workers. Even if your small business may not be lawfully required to have workers’ comp insurance, getting a coverage policy can still be an excellent idea as it can provide a variety of benefits.
While the specific insurance requirements vary from one industry to another and are determined by state law, they help protect any entrepreneur from costly damages resulting from workplace accidents, injuries, or illnesses.
Who Needs Workers’ Comp in Florida?
Workers’ comp insurance Florida law requires most businesses with four or more workers to purchase the policy. However, the size of your business, type of employees, and industry will affect the specific insurance you need.
Let’s take a look at some of the industries that require workers’ compensation insurance:
- Construction businesses: The state of Florida workers’ comp insurance law requires construction business owners to carry the policy for every worker, including contractors. However, up to three directors can be exempted, especially if each director can prove that he owns at least 10 percent of the company. Also, contractors need to make sure that their subcontractors provide this coverage for their employees.
- Non-construction businesses with a minimum of four workers: If your business has four or more workers, including owners who are corporate officers or members of a Limited Liability Company, you must have a workers’ comp insurance policy.
- Agricultural companies with a minimum of six workers: if your agricultural organization has at least six workers or twelve temporary members of staff who work over thirty days during a season but no more than forty-five days in a calendar year, you will need a workers’ comp insurance policy.
- Contractors: If you’re a contractor in Florida, you must have a workers’ compensation policy with an authorized insurance service provider. You can have a workers’ comp policy for independent or self-employed contractors before you can start any project in Florida.
- Out-of-state employers: Out-of-state employers with employees in Florida need to carry a workers’ comp insurance policy with a licensed carrier.
Eligibility for Workers’ Compensation in Florida
Workers injured on the job or those who become ill while in their line of duty may be eligible for workers’ comp insurance. All companies in the construction sector need to get coverage, regardless of the number of employees they have. The only limitation is if they can lawfully file an owner exemption. Companies in other industries apart from construction with at least four workers, either full-time or part-time, must purchase workers’ comp insurance in the state.
It doesn’t matter whether you’re working in health care, retail, hospitality, construction, or other industries; it’s quite likely that your business has workers’ comp insurance coverage in Florida. If you fall and injure yourself or suffer a job-related illness, a workers’ compensation policy has got you covered. Your work status matters when it comes to workers’ comp insurance eligibility in Florida. Individuals eligible for workers’ comp coverage need to be classified as employees and not independent contractors. In essence, independent contractors work for themselves and aren’t eligible for workers’ comp coverage benefits.
Requirements for Workers’ Comp in Florida
In terms of workers’ comp insurance requirements in Florida, it is important to note that to be eligible for benefits, the illness, accident, or injury must be due to responsibilities or efforts directly related to work.
There is a direct connection if you get injured working with a machine or tool on the job, slip and fall, or fall off a ladder while at a construction site. Job-related illnesses may require a comprehensive approach. But occupational illnesses occur in the United States and affect the lives of hundreds of people.
Let’s look at an example. If your work involves working with or around chemicals, it’s possible to get exposed to irritants that may affect your health. Or if you work in a chemical manufacturing plant and accidentally inhale chemicals that can affect your health. This could take place due to extended exposure or an accident at your place of work. If any of these cases apply to you, a workers’ comp insurance policy in Florida will cover the expenses to treat the ailment you acquired while in your line of duty.
How Does Workers’ Comp Work in Florida?
If your workers have a job-related illness or injury, workers’ comp coverage can help them to cover vital expenses such as medical bills and associated costs. These bills can be for ongoing treatments such as physical therapy or repetitive strain injuries.
Also, this insurance policy helps replace lost salaries. If you’ve got injured employees who require an extended period to recover from job-related illnesses or injuries. Also, it can help cover permanent disabilities that keep your workers from returning to their workplace. A workers’ comp insurance policy will also help cover funeral expenses if job-related illnesses or accidents lead to the death of the workers.
Exclusions to Workers’ Compensation Benefits
In Florida, the following situations are excluded from workers’ comp insurance:
- A nervous or psychological injury caused by excitement, fright, or stress
- The injuries were caused primarily by the worker being under the influence of prohibited substances or being intoxicated.
What are the Penalties for Not Having Workers’ Comp in Florida?
Businesses or employers that operate without workers’ comp insurance risk hefty fines. Usually, that means the company or employer would be subject to a stop-work order. The order requires the business to cease all operations until the company complies and pays the fine.
The penalties are usually higher, typically twice the coverage premium the employer or business would have paid for the next two years. If a company fails to comply with the stop-work order, it may be subject to criminal charges.
Additionally, your business may be subject to this order if:
- Workers’ duties are concealed or misrepresented
- There is an attempt to sidestep paying workers’ comp premiums
- Payroll is concealed or understated
If you want to avoid any future complications, such as being subjected to a stop-work order, facing criminal charges, or being liable for your employees’ job-related illnesses or injuries, you must adhere to workers’ comp insurance Florida requirements. And that means you need to have a workers’ comp insurance policy.
