Does a Sole Proprietor Need Workers’ Comp Insurance in Florida?

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The requirements regarding workers’ compensation insurance for companies in Florida are strict. Most businesses must have workers’ compensation insurance if they have at least four employees. However, if a business does construction-related work, they must have workers’ compensation insurance if they have at least one employee; there are exceptions to this rule, too, though. Sole proprietors are not required to have workers’ compensation insurance, but they can have it if they so choose.

NPN Brokers can help sole proprietors and other businesspeople find workers’ compensation insurance at an affordable price. NPN can provide a fast quote on the price of workers compensation insurance if you visit NPN Brokers’ website and answer a few questions about your business, employees, and the type of insurance that you would like to have. Florida workers’ compensation insurance brokers at NPN invite you to keep reading for more information about how you can get workers’ compensation insurance as a sole proprietor.

Workers’ Compensation Insurance Requirements for a Sole Proprietor in Florida

Most businesses in the State of Florida are required to have workers’ compensation insurance. Whether or not a business is required to have workers’ comp depends on the type of work that the company does and the number of people that the company employs. Keep reading to learn about workers’ comp employee number requirements in Florida.

Companies that do neither agricultural work nor construction-related work must get workers’ compensation insurance in Florida if they employ at least four people. Companies that are in an agricultural or farming industry must provide workers’ compensation insurance if they employ at least 6 people full-time or at least 12 people seasonally.

Companies that do construction-related work must provide workers’ compensation insurance for employees if they employ at least one person. Construction-related work includes a range of jobs, such as landscaping and tree removal, heating and ventilation, electrical work, carpentry and floor work, cabinet installation, and much more.

Contractors and subcontractors are considered to be employees. Up to three corporate officers may be except from being considered to be employees if they can demonstrate that they have ownership of at least 10% of the company.

Sole proprietors are not considered to be employees and are not required by the State of Florida to have workers’ compensation insurance. However, it is likely to be beneficial to have workers’ compensation, and they are able to get it if they would like to have it.

Employers should be aware of the consequences that they may face for failing to get workers’ compensation insurance. Penalties for not having a workers’ comp policy for employees including possible lawsuits from injured employees, fines from the State of Florida, and stop-work orders that will require an end to all business operations.

Claiming that an employee is an independent contractor in an attempt to avoid paying for workers’ compensation insurance can result in a $5,000 fine or fraud charges.

What Workers’ Compensation Insurance Covers

The purpose of workers’ compensation insurance is to cover the costs associated with an injury that is suffered by an employee while they are on the job. Costs that are covered by workers’ compensation insurance policies include medical costs (ambulance rides, hospital stays, physician visits, physical therapy, and medication) and any wages lost due to an inability to work as a result of the injury.

Costs related to the death of an employee who dies while working may also be covered by workers’ compensation policies. Death benefits include up to $7,500 for funeral expenses and up to $150,000 to the dependents of the deceased employee.

Employees are not able to receive benefits from workers’ compensation if their injuries were sustained through some fault of their own. If they suffered the injury while failing to observe safety rules; if they were not wearing the proper safety equipment at the time that they sustained the injury; or if they were under the influence of drugs or alcohol when they sustained the injury, then they will not be eligible to receive workers’ compensation benefits. They will also be ineligible to receive workers’ comp benefits if they inflicted their injury on themselves.

There is a statute of limitations in place for workers’ compensation claims in Florida. Claims for workers’ compensation benefits following an injury in the workplace must be made less than two years after the injury. If the employee is a minor, mentally incompetent, misled about their coverage, or not properly informed about their rights, then exceptions to the two-year statute of limitations may be made.

Getting a Quote for a Workers’ Compensation Insurance Policy

NPN Brokers is able to provide quotes to any business that is interested in getting a workers’ compensation insurance policy in Florida, regardless of the size or industry. Business owners can visit NPN Brokers’ website and fill out a few questions regarding their business, their employees, and the coverage they would like to receive and get a quote that is tailored to their specific needs within a few minutes. The insurance policies that NPN Brokers offers require no contracts, deposits, or audits and can be paid on a flexible schedule.

Get Workers’ Compensation Insurance for Your Sole Proprietorship Today

At NPN Brokers, we want to make it easy for everyone — whether an employee of a company or a sole proprietor — to get workers’ compensation insurance. Reach out to NPN today to get a quote on a policy or to learn more about policy options for you and your company. Call NPN Brokers at (866) 340-9120 to find out more.