Florida Worker’s Compensation Coverage for Electrical Work Contractors
In Florida, all companies that do construction-related work must buy and carry worker’s compensation insurance for their employees. Electrical work and electrical companies are considered to be a part of the construction industry, which makes them subject to these laws. However, it can be difficult for electrical contractors and companies to find an insurance provider that will provide them with an affordable, dependable, and fair policy due to the risks and high liability associated with all areas of the construction industry.
NPN Brokers is here to help. NPN understands the challenges that face contractors and companies that do construction-related work, including those that do electrical work. If you are a contractor that does electrical work or you own or run a company that does electrical work, get in touch with NPN Brokers as soon as possible for a free quote. Call (866) 340-9120 or visit NPN’s website today.
Worker’s Compensation Policy Laws in Florida
Worker’s compensation ensures that employees are compensated if they are injured or fall ill “in the course and scope” of the job. With worker’s compensation insurance, the insurance covers the costs an employee incurs after an injury, which can include medical costs (physician and hospital visits, prescription costs, physical therapy), and missed income and lost wages. It can also cover the costs associated with death if an employee is killed on the job, which is paid to the deceased employee’s family.
It is important for both employers and employees to have worker’s compensation insurance—it ensures that employees will be paid what they’re owed, and it protects employers from large lawsuits that will require them to pay for the employees’ injuries out-of-pocket.
In Florida, all companies and contractors that work in a construction-related field and that employ a minimum of one person are required to have worker’s compensation insurance (this includes contractors and companies that work in the electrical field). Industries that are construction-related are the only ones that are subject to these requirements.
Agriculture companies in Florida that have at least six employees are required to provide worker’s compensation insurance for their employees, while companies in neither field must pay for worker’s compensation insurance if they have at least four employees.
Electrical Contractors and Companies are a Part of the Construction Industry
According to Rule 69L-6.021 of the Florida Administrative Code, any business that does work in a construction-related field and that also employs at least one person is required to purchase and maintain a worker’s compensation policy. Construction-related is a broad term that includes landscaping and tree removal, carpentry and floor work, cabinet installation, roofing, siding installation, plumbing, tile and stone work, commercial fishing, and heating, ventilation, and air conditioning. This also includes contractors and companies that do electrical work.
The Cost of Worker’s Compensation Insurance in Florida
The price of worker’s compensation insurance is determined by several factors. The first is the nature of the work that the company does. Companies that do more dangerous work are charged more for their worker’s compensation insurance policies. The second factor that determines the price of a worker’s compensation policy is the cost of the losses for the businesses in similar industries of the five years preceding the date of the quote given about a policy. Additionally, a company’s worker’s compensation claim history can affect the final costs of a policy.
The Penalties of Failing to Get a Worker’s Compensation Policy in Florida
Contractors and companies that work in the electrical field that fail to get worker’s compensation policies may face severe penalties. They may have to pay for costs related to employees’ injuries out-of-pocket if the employee files a lawsuit against them. Injured employees are allowed to sue employers that have failed to pay for a worker’s comp policy.
Companies that do not obtain worker’s compensation policies for their employees may also have to pay large fines to the state of Florida. Florida may require them to pay a fine of $1,000 per employee that did not have an insurance policy or double the amount of what they would have paid in premiums during the time that they were not insured. Another possible consequence of failing to obtain a worker’s compensation policy is a stop-work order issued by the state, which would force your company to stop all business operations until it complies with the laws regarding the purchase of worker’s compensation policies for employees.
Attempting to avoid paying for a worker’s compensation policy for an employee by falsely declaring that they are an independent contractor can result in a fine of $5,000. Imprisonment (as it is a type of insurance fraud) or loss of the right to conduct business in Florida are other possible consequences.
NPN’s Worker’s Compensation Policies for Florida Electrical Contractors and Companies
NPN Brokers wants to make it easy for electrical contractors and owners of electrical companies to get worker’s compensation insurance. If you provide information about your business and its employees, NPN can provide an affordable quote that is tailored to reflect the unique needs of your electrical business. Find out more about how NPN can help your business get quality worker’s compensation insurance by calling (866) 340-9120 or visiting their website.