Can Members of an LLC Be Excluded from Workers’ Comp in Florida?
According to Florida law, businesses must get workers’ compensation insurance if they have a certain number of employees, depending on the industry. These laws consider LLCs to be businesses, which means that most LLCs are not excluded from workers’ compensation requirements in Florida. Continue reading if you would like more information about the workers’ compensation policy requirements for LLCs in Florida and how the Florida workers’ compensation brokers at NPN Brokers can assist your business as you seek the workers’ comp policy that is right for you.
Do Florida LLCs Need a Workers’ Compensation Policy?
Businesses in Florida are subject to strict requirements regarding the need for workers’ compensation insurance, according to state law. All businesses (except those in the construction or agricultural industries, which have unique requirements) must obtain workers’ compensation insurance if they employ four or more people.
Members of LLCs are considered to be employees, which means that LLCs are subject to the same requirements as any other Florida business. General contractors, subcontractors, and business owners are also considered to be employees; sole proprietors and independent contractors, however, are not. LLCs, as well as non-LLC businesses, can exempt up to three corporate officers from their workers’ compensation requirement if each officer can demonstrate that they have ownership of the company in excess of 10%.
LLCs in the agricultural industry must get workers’ compensation insurance if they employ six or more people year-round or 12 or more people seasonally. LLCs in the construction industry (as well as construction-related industries, which includes HVAC, roofing and siding, plumbing, and many other fields) must get workers’ compensation if they employ one person. If you would like to know more about which jobs are considered construction-related under the law, consult the Florida Administrative Code.
Florida business owners and members of LLCs should note that there are penalties for not having workers’ compensation insurance for their employees. These penalties can include a fine of $1,000, a stop-work order (an order that forces your business to cease all business operations), or lawsuits from injured employees who are not insured. (Lawsuits for workplace injuries are much more comprehensive than what is covered in a workers’ compensation policy, allowing employees to receive damages for not only medical bills and lost wages but also pain and suffering.) Employers may also be fined up to $5,000 if they attempt to claim that an employee is an independent contractor to avoid getting a workers’ compensation policy; this is also a type of insurance fraud, which can result in jail time for those involved.
Benefits Included In an LLC Workers’ Compensation Policy
Workers’ compensation insurance policies can benefit employees of Florida companies by covering the cost of injuries suffered while employees are on the job. The costs that are covered in workers’ compensation policies are mostly those that come from medical treatment, including ambulance rides, stays in the hospital, visits with physicians, prescription medications, medical equipment, surgery, physical therapy, and occupational therapy. Injured employees can also recover wages that were lost as a result of their inability to work, though this type of compensation is capped at a certain amount.
Death benefits are also available through workers’ compensation policies if an employee dies while they are working. The deceased employee’s family may receive up to $7,500 toward the cost of the funeral, as well as payments to surviving dependents. It should also be noted that injured employees cannot receive compensation for pain and suffering through a workers’ compensation policy in Florida.
The liability of the employee is not usually taken into account when they receive workers’ compensation benefits; there is rarely an investigation into who is at fault for the injury. However, employees that inflict injuries on themselves, suffer injuries while they are drunk or under the influence of drugs, or who ignored safety protocol at the time of their injury will not be eligible to receive workers’ compensation benefits.
Pricing of Workers’ Compensation Policies for Florida LLCs
The price of a workers’ compensation policy for a Florida-based business depends on the level of risk associated with the job and the number and severity of workers’ compensation claims that the business has on its record, which is known as its “experience modification factor.” Since jobs in the construction industry are often riskier than other jobs, businesses that work in construction can expect to pay more for their policies. Businesses that have existed for less than three years can also expect to pay higher rates for policies.
LLCs should know that they can depend on NPN Brokers when it’s time to find an affordable workers’ compensation policy. If you’d like a quote on a policy for your LLC, you can visit the NPN Brokers website, enter some basic information, and get a quote within minutes.
Workers’ Compensation Insurance Brokers Serving LLCs in Florida
NPN Brokers is committed to providing high-quality services to businesses throughout Florida, regardless of their size or industry. The brokers that work with NPN can help LLCs and other businesses throughout Florida in their pursuit of a quality, affordable workers’ comp policy. If you would like to learn more about the services that NPN Brokers can provide to your business, get in touch today by calling (866) 340-9120.
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