Florida Workers Compensation Policy Coverage for Plumbing Contractors
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Contactors and companies that are in the plumbing industry are required to get worker’s compensation insurance for their employees. In the State of Florida specifically, any construction-related company that employs at least one person is required by law to get worker’s compensation insurance for its employees. This also applies to individual contractors.
Worker’s compensation ensures that employees are paid what they deserve if they are injured on the job, and it protects companies from being sued by employees that have been injured. Despite its importance, it is still often difficult for companies in Florida to find coverage for their companies. NPN Brokers wants to help you, as a contractor or company that does plumbing work, to get an affordable and fair worker’s compensation policy. They can find insurance for your company, regardless of the size or industry. To get a free quote on a worker’s compensation insurance policy for your company, get in touch with NPN Brokers. Call (866) 340-9120 today.
Why Contractors and Companies Need Worker’s Comp
If you are a contractor that does plumbing work or you own a company that does plumbing, you need to get worker’s compensation for your company. Rule 69L-6.021 in the Florida Administrative Code states that any company that does business in a construction-related field, and that also employs at least one person, must provide worker’s compensation policies for its employees. This applies to both general contractors and sub-contractors.
“Construction-related field” is a broad term that applies to many industries, such as farm machinery operators, electricians, roofers, sheet metal workers, carpenters, wallpaper hangers, landscapers, tree removal specialists, and concrete, stone, and tile workers. It includes plumbing as well.
Other industries that operate in Florida are also required to get worker’s compensation insurance for their companies, though the minimum number of employees that requires them to get coverage varies. Companies in the field of agriculture that have at least six employees are required to get worker’s compensation insurance for their employees while companies that are neither agricultural nor construction-related are required to get worker’s compensation insurance if they have at least four employees.
Failing to Get Worker’s Compensation Insurance for Your Company Can Result in Penalties
The State of Florida employs investigators to monitor the status of construction-related employers’ worker’s compensation insurance policies. Companies that are in construction-related industries are subject to investigation about the status of their worker’s compensation policies at any moment.
If investigators find that a contractor or a company does not have a worker’s compensation insurance policy, they may face severe penalties from either the State of Florida or the employees that they failed to provide coverage for.
Companies that have failed to fulfill their duty to provide worker’s compensation insurance for their employees may face the following penalties:
- Paying out-of-pocket claims to injured employees, who may sue their companies as a result of their injuries
- Paying large fines for failure to maintain a policy, which can be either $1,000 or double the amount of the premiums that they would have paid over the period of time that the employee(s) went uninsured
- Losing the right to conduct business within the State of Florida
- The issuance of a stop-work order, which will require them to cease operations until they come into compliance with the laws regarding worker’s compensation insurance
If an employer attempts to avoid paying for worker’s compensation insurance for an employee by falsely claiming that the employee is an independent contractor, they may face a $5,000 fine or insurance fraud charges, which can lead to imprisonment.
Sometimes an investigator will request documents from a company that proves that they have worker’s compensation insurance for their employees. It’s recommended that companies keep these documents on hand in case they are needed at a moment’s notice. The documents that prove that a company has worker’s compensation insurance policy for its employees may be:
- The information page from the worker’s compensation insurance policy that has been bought
- The Proof of Coverage database, which can be found on the Division of Worker’s Compensation website; a screenshot of the web page will suffice
- A Certificate of Liability Insurance, which should include information about the insurance policy provider, the name of the person being insured, the policy number, the coverage’s limits, and the dates on which the contractor or employee will do the work or be employed
Worker’s Compensation Policies for Plumbing Contractors and Companies
Allow NPN Brokers to provide you or your plumbing company with quality, affordable worker’s compensation insurance. You can get a quote for coverage from NPN Brokers if you provide information about the age of your business, when you need coverage, the type of work you do, and the number of employees that you have. Get in touch with them today by calling (866) 340-9120.