Florida Small Business Workers’ Comp Insurance
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The price that businesses must pay for worker’s compensation insurance in Florida varies based on the industry that the company does work in, the size of the company, and the company’s history with worker’s compensation claims. Since the methods that the worker’s compensation insurance industry uses to determine the prices of policies are strict, small businesses are often daunted by the pursuit of getting policies for their employees.
However, owners of small businesses in Florida can take comfort in the fact that they can get fast and easy quotes on worker’s compensation policies from NPN Brokers. By simply entering some basic information about their company and employees, owners of small businesses can get quotes on comprehensive and affordable worker’s compensation policies for their Florida-based businesses. Call NPN Brokers (866) 340-9120 or visit us online to learn more.
How the Cost of Worker’s Compensation Policies for Small Businesses Is Determined
Not all small businesses in Florida may be required to have worker’s compensation policies. Since businesses are only required to have worker’s compensation policies if they are a certain size, some small businesses may have so few employees that they fall below Florida’s threshold of the number of employees that requires them to have worker’s compensation policies for their employees.
In the agricultural industry, companies must have worker’s compensation insurance if they have at least six full-time employees and 12 seasonal employees. However, companies in the construction industry (as well as construction-related fields such as carpentry, electrical work, landscaping and tree removal, and much more) must have worker’s compensation policies if they have at least one employee. Therefore, virtually all small businesses that do work in the construction industry or a related field must have worker’s compensation policies. Corporate officers that work for a company may be exempt from needing worker’s compensation insurance if it can be demonstrated that they have at least a 10 percent ownership of the company. Companies that do work in industries that are not agriculture or construction must get worker’s compensation policies if they have at least four employees.
Small businesses can anticipate higher prices on worker’s compensation policies if they do work in an industry that carries a high level of risk. Prices of worker’s compensation policies are determined by the level of risk associated with each job; the level of risk is assessed and put into a classification system by the National Council of Compensation Insurance (NCCI). Since risky jobs are more likely to result in injuries and therefore worker’s compensation claims, they carry a higher price.
Small businesses that have filed worker’s compensation claims in the past can also expect to pay higher rates for their policies. (A business’s history with filing worker’s compensation claims is known as their “experience modification factor.”) Both the number and severity of a business’s past worker’s compensation claims will determine the price that they can expect to pay for their policies. The amount of time that has a business has been in operation can also affect the price that they will pay for policies—businesses that have existed for three years or less can expect to pay higher rates for their policies.
If you would like a quote on a worker’s compensation policy without having to wait, visit the website of NPN Brokers today. Enter basic details about your small business and its employees and you can get a quote on policies sent back to you quickly and easily.
Penalties for Failing to Get a Worker’s Compensation Policy
Small businesses that are based in Florida should be aware of the penalties that they may face if they fail to get worker’s compensation policies for their employees. Florida employs investigators whose job it is to look into whether companies are complying with the statutes surrounding worker’s compensation policies in Florida’s Administrative Code. If they discover that a company is not complying with Florida’s worker’s compensation requirements, they may issue penalties that can damage a business’s ability to make a profit.
One penalty that the State of Florida may issue against businesses that don’t have worker’s compensation policies for their employees is fines, which may be up to $1,000 per employee or twice the amount that they would have paid in premiums. Businesses that don’t get worker’s compensation policies may also be issued a stop-work order. This will force them to stop all work operations until they come into compliance with Florida’s worker compensation insurance statutes.
Also, companies that don’t have worker’s compensation policies for their employees may face lawsuits from employees that are injured while working. These lawsuits will force the employer to pay for the injured employee’s medical costs, lost wages, and even pain and suffering out-of-pocket.
It is common for employers to attempt to lie about the status of their employees—they may claim that their employees are independent contractors so that they can avoid having to pay for worker’s compensation policies for them. Doing so can result in a fine of $5,000 and, since it is a type of insurance fraud, imprisonment. Employers may also criminal or civil actions for actively failing to report injuries suffered by employees, intimidating or dissuading employees against claiming worker’s compensation benefits or retaliating against employees for filing claims following an injury.
Contact NPN Brokers to Get Worker’s Comp Insurance for Your Small Business
If you are the owner of a small business that is based in Florida, know that you can use NPN Brokers to find a worker’s compensation policy that suits your company’s budget. Getting a quote is easy and only take a few minutes. Get in touch with NPN Brokers to learn more. You can call (866) 340-9120 or visit NPN Brokers online.