Florida Rules for Workers’ Compensation Coverage

There are many Workers’ Compensation rules employers must follow in Florida. If the rules aren’t followed, employers and their companies might face the consequences.

As an employer in Florida, it is important to understand how your state handles Workers’ Compensation coverage. For the most part, insurance is required based on a company’s size and industry. Companies in the construction industry always need Workers’ Compensation in Florida, while non-construction companies need insurance if they employ a certain number of workers. There are specific rules regarding exemptions from Workers’ Compensation policies which mostly apply to LLC members and corporate officers. Employers must follow certain rules when reporting workplace injuries. While there are many rules for employers regarding Workers’ Compensation, there are also rules for carriers, such as how they can price insurance policies in Florida.

Call the Florida Workers’ Compensation insurance brokers at NPN Brokers at (561) 990-3022 to learn more about finding coverage for your company today.

Workers’ Compensation Rules for Companies Based on Industry in Florida

Florida determines whether or not a company needs Workers’ Compensation based on its industry and payroll. For the most part, Workers’ Compensation is mandatory.

Construction Companies

All construction companies are required to maintain Workers’ Compensation for their employees in Florida. The payroll threshold for needing workplace liability insurance for construction companies is employing one regular worker. Independent contractors are not permitted in the construction industry in Florida.

Non-Construction Companies

For most non-construction companies, the payroll threshold is higher. In Florida, non-construction companies with four or more workers need to have Workers’ Compensation insurance.

Agricultural Companies

There are specific rules that dictate when agricultural companies need Workers’ Compensation in Florida. Agricultural companies with six or more full-time workers or 12 or more seasonal workers must have workplace liability insurance.

Workers’ Compensation Rules for Reporting Injuries in Florida

Florida also has rules for employers surrounding the proper reporting of workplace injuries to Workers’ Compensation insurance carriers.

In Florida, employers must report employee injuries to their Workers’ Compensation insurance carriers within seven days of learning of an accident or injury. If you do not do this, you might be financially penalized by the Division of Workers’ Compensation. Inform your carrier of an accident and provide detailed information about the accident and the injured employee. Your carrier will then send an informational brochure to an injured worker within three days of being informed of their injury. Throughout its investigation into an accident, your carrier might request more detailed information about the incident.

Workers’ Compensation Rules for Insurance Exemptions in Florida

Florida allows LLC members and corporate officers to exempt themselves from a company’s Workers’ Compensation insurance policy. There are different rules for exemptions based on a company’s industry.

Up to three corporate officers or LLC members of a construction company can be exempt from Workers’ Compensation insurance at any given time. There are specific rules regarding eligibility for exemptions. For example, officers and members cannot have active stop-work orders or working-in violation orders affiliated with their companies when applying for Workers’ Compensation exemptions.

There are similar rules regarding exemptions for corporate officers and LLC members of non-construction companies. While there is no limit on how many corporate officers of non-construction companies can be exempt from Workers’ Compensation, no more than ten LLC members can be exempt at the same time.

You must renew your exemption regularly. You can revoke your exemption if you want to be covered under your company’s policy. If you are exempt from your company’s Workers’ Compensation, you cannot receive benefits if hurt on the job in Florida.

Workers’ Compensation Rules for Self-Insuring in Florida

Self-insuring for Workers’ Compensation is an option for specific companies in Florida. While self-insuring means your company does not have to pay Workers’ Compensation premiums, it also means your company will absorb the cost of employee claims.

In order to self-insure in Florida, you must prove to the Florida Self-Insurers Guaranty Association that your company has sufficient finances to handle any and all injury claims that might arise from its workforce. The application process for self-insuring is complicated and requires companies to provide detailed information about their finances.

If you self-insure, you will be held responsible for paying Workers’ Compensation benefits to injured employees. Your company will also have to process Workers’ Compensation claims. Alternatively, you can enlist our Florida Workers’ Compensation insurance brokers to find a policy that meets your budget so that you do not have to take on the cost of employee injuries yourself.

Workers’ Compensation Rules for Insurance Rates in Florida

Workers’ Compensation carriers cannot make up insurance rates out of thin air. In Florida, carriers must refer to rates set by the National Council on Compensation Insurance (NCCI) when pricing premiums.

The NCCI uses industry information to classify companies and determine Workers’ Compensation rates. Carriers in Florida must use these rates when calculating a company’s premiums. Knowing your company’s NCCI code classification and rate can allow you to estimate the cost of insurance more easily.

That said, NCCI rates are not the only factors when determining insurance costs. Carriers also evaluate a company’s specific risk factors, such as its age and history of Workers’ Compensation claims and workplace accidents. Our brokers can honestly evaluate your company’s risk factors so that you know the appropriate premiums in your case.

Workers’ Compensation rates can increase periodically. Changes to a company’s payroll will likely affect its Workers’ Compensation premiums. A spike in workplace accidents can also impact the cost of insurance.

Florida allows employers to receive up to a 5% credit for Workers’ Compensation if they implement a drug-free workplace program. Employers can also receive a 2% credit for Workers’ Compensation if they implement a safety program in Florida.

Call Our Brokers to Learn More About Workers’ Comp in Florida

Call our Florida Workers’ Compensation insurance brokers at (561) 990-3022 to learn how coverage rules might impact your company.