Do Small Business Owners Need Worker’s Compensation in Florida?

Businesses in Florida must get worker’s compensation policies if they employ a certain number of people, regardless of their size. The threshold of people that are employed that will require a business to get worker’s compensation insurance depends on the industry that they do work in. Finding good worker’s compensation policies for employees can be daunting for small businesses that may unsure of whether they’re able to afford policies for employees and contractors. But with the help of the Florida worker’s compensation insurance brokers from NPN, small businesses in Florida can find policies that are right for them and their employees. Does your company need workers’ compensation insurance in Florida? Continue reading to learn more about Florida’s requirements surrounding worker’s compensation laws and how you can get one with the help of NPN Brokers.

Types of Businesses that Must Have Workers’ Compensation Insurance in Florida

Florida-based businesses, regardless of whether they are large or small, are limited by worker’s compensation employee number requirements. However, there are a few exceptions to this rule. These include:

  • Agricultural companies must get worker’s compensation insurance for businesses if they employ at least six people full-time or twelve people seasonally.
  • Companies that do work in the construction business or a construction-related field need to carry worker’s compensation insurance if they employ at least one person. Construction-related fields are fields that are involved in the construction or maintenance of a structure and includes landscaping and tree removal, heating and ventilation, roofing and siding, carpentry, and many more. General contractors and subcontractors are considered to be employees when they work for construction companies or in a construction-related field. A maximum of three corporate officers may be exempted from needing worker’s compensation insurance policies if it can be demonstrated that they have an ownership stake of at least 10%.
  • Independent contractors are not required to have worker’s compensation insurance unless they work for a construction company.
  • Partners of businesses and sole proprietors of businesses are exempt from worker’s compensation laws. They may purchase coverage if they choose to, however.

Businesses should be aware of penalties for not having worker’s compensation in Florida. Failure to get worker’s compensation policies for employees can result in a fine of $1,000 or a stop-work order—this will force them to stop working until they come into compliance with Florida’s statutes surrounding worker’s compensation policies. Another possible consequence of failing to get worker’s compensation policies is lawsuits filed by injured employees.

What Is Included in a Workers’ Compensation Policy

Worker’s compensation policies cover the costs that come from injuries that employees and contractors suffer while they are working. The costs that worker’s compensation policies cover include medical costs and the wages that employees lose while they are unable to work. The medical costs that can be recovered in a worker’s compensation policy include ambulance rides, hospital stays, visits with physicians and specialists, prescription medications, physical therapy, and occupational therapy. The lost wages that employees can recover are only partial and are capped at a certain amount. Worker’s compensation policies can also cover the costs if an employee dies while they are working—their family may receive up to $7,500 for the cost of a funeral, and dependents may receive up to $150,000.

Certain circumstances surrounding an injury may prevent employees from receiving worker’s compensation benefits. If, for example, an employee inflicts an injury on themselves while they are at work, they will not be eligible to receive workers’ compensation benefits. Employees are also ineligible to receive worker’s compensation benefits if they neglect to follow safety protocol and procedures or if they were under the influence of a substance at the time of the injury. Unless there are special circumstances, holders of worker’s compensation policies in Florida have two years to file claims for their injuries. Special circumstances that may extend the statute of limitations include the employee being a minor being mentally incompetent, or misled about their coverage.

How Workers’ Compensation Policies are Priced for Small Businesses

Worker’s compensation policies are priced based on two main factors: the level of risk that is involved in a certain job and the company’s past with filing worker’s compensation claims. The National Council of Compensation Insurance (also known as NCCI) assesses and determines the level of risk associated with each job and then uses that assessment to determine the price of a policy for each job. Risky jobs are more likely to result in an injury and a subsequent worker’s compensation claim, which means that they usually cost more for employers.

The number and severity of a business’s past worker’s compensation policies can determine the amount that they will pay for their policies. A company’s history with worker’s compensation claims is called their “experience modification factor.” Businesses that have been in operation for relatively short periods of time (three years or less) may also pay more for their worker’s compensation policies.

Businesses and contractors are encouraged to visit NPN Brokers’ website for a quote on a worker’s compensation policy. They can enter information about their employees and the type of work they do and receive a quote on a policy virtually instantaneously.

Contact NPN Brokers Today for Worker’s Compensation Policies for Your Small Business

Small businesses that are based in Florida should take solace in the fact that they can use the help of NPN Brokers to find worker’s compensation policies that provide comprehensive coverage for them and the people that work for them. Contact the NPN Florida workers’ compensation insurance brokers at (561) 990-3022 to learn more about the right policy for you.