Florida Workers Compensation Policy Coverage for HVAC Companies
All companies that do construction-related work in the state of Florida are required to carry worker’s compensation insurance if they have at least one employee working for them (this applies to general contractors and sub-contractors as well).
Though most people may not consider heating, ventilation, and air conditioning to be a “construction-related business,” the state of Florida does, and it enacts laws pertaining to worker’s compensation policies accordingly. It can be difficult to get insurance for construction-related companies (including HVAC companies) because insurance companies are reluctant to provide coverage for businesses that have a high risk of injury.
Luckily, NPN Brokers is here to help you get a quote for a worker’s compensation policy for your HVAC business, no matter its size, age, or level of danger on the job. If you’d like to learn more about how your business can get worker’s compensation coverage for your HVAC business, get in touch with us today by calling us at (866) 340-9120 or visiting our website.
Florida Worker’s Compensation Policy Laws
Worker’s compensation policies are purchased by employers all over the country to cover expenses incurred by an employee’s injury on the job. These costs can include lost wages and missed income, disability payments, and the cost of medical bills, prescriptions, and physical therapy. It can also pay death expenses to the family of a person who has died while on the job.
Most states require that employers provide worker’s compensation coverage for their employees. This usually only applies to companies that have a minimum number of workers. In Florida, however, any construction-related company that has at least one employee is required to provide worker’s compensation coverage.
This minimum applies only to construction-related companies; agricultural companies have to provide worker’s comp if they have at least six employees, and regular companies have to provide it if they have at least four employees. All employers are subject to this law, but so is anyone who hires someone else to do work for them, including sub-contractors.
In order to prove that they have coverage for their employees, employers should keep certain documents on hand. These include a copy of the information page that can be found in the compensation policy, a screenshot of their information on the Proof of Coverage database (this can be found on the Division of Worker’s Compensation website), or a Certificate of Liability Insurance, which must contain information about the insured person and the insurer. It’s advisable to keep all paperwork on-hand in case of inspection by a state investigator.
Are Heating and Air Conditioning Companies Considered ‘Construction-Related’?
Rule 69L-6.021 in the Florida Administrative Code says that any business that does work in a construction-related field that employs at least one person must have a worker’s compensation policy. The term “construction-related field” includes employees and sub-contractors that work for companies that do landscaping, roofing, and farm machinery operations. The term “construction-related field” also includes HVAC.
The Cost of Worker’s Compensation Insurance for HVAC Companies in Florida
The cost that employers will pay for a worker’s compensation policy for their employees is based on a few things. The first thing that insurance companies consider when determining the cost of a policy is the type of work that the company does — high-risk industries, such as those classified as “construction-related,” will likely pay more for their worker’s compensation policy. The second thing that insurance companies consider is the cost of the losses in claims that that category of business has paid over the preceding five years.
Penalties of Failing to Get a Worker’s Compensation Policy
Businesses are, at any moment, subject to investigation regarding the status of their worker’s compensation policy. If they don’t have a proper policy, they can face major penalties.
Penalties that companies can face for failing to maintain a worker’s compensation policy include:
- Paying claims to injured employees out-of-pocket
- Paying fines, which can either be $1,000 or double the amount of worker’s compensation premiums that would be have been paid by the employer over the length of time that they didn’t have it; they can be fined $5,000 if they falsely declare that an employee is an independent contractor
- Insurance fraud charges
- Loss of the right to conduct business in the state of Florida
- A stop-work order, which will force them to cease operations until they begin complying with Florida state law
- Being sued by employees who are not covered by a worker’s comp policy
Let NPN Help You Find the Best Worker’s Compensation Insurance Policy for Your HVAC Company
If you have an HVAC company and are trying to find worker’s compensation insurance for your employees, don’t get discouraged. While it may be difficult to find a provider that is willing to grant insurance coverage for your business on your own, it’s easy with the help of NPN Brokers. NPN Brokers can get your HVAC company a fast rate that is customized to reflect the unique needs of your business at an affordable cost. To find out more about how to get an insurance quote from NPN Brokers, visit our website or call (866) 340-9120 as soon as possible.