Florida Workers Compensation Policy Coverage for Roofing Contractors
Worker’s compensation exists to cover the expenses associated with injuries that employees suffer while working. Most states require that employers have worker’s compensation insurance for their employees, and this includes Florida. In Florida, companies and contractors that do construction-related work are required to provide their employees with worker’s compensation insurance.
NPN prides itself on its ability to secure affordable and comprehensive insurance policies for companies that do construction-related work in the State of Florida. For a quote on an insurance policy rate, get in touch with NPN Brokers as soon as possible. Call (866) 340-9120 for more information about getting a quote on a worker’s compensation insurance policy today.
Contractors and Companies in Florida Need Worker’s Compensation Insurance
The Florida Administrative Code (Rule 69L-6.021) dictates that all employers that do construction-related work in the State of Florida must provide their employees with worker’s compensation policies. This applies to companies that have at least one employee as well as individual subcontractors.
The requirement for companies to provide employees with worker’s compensation insurance serves to protect both the company and the employee. Companies are protected by worker’s compensation policies because they protect them from lawsuits by injured employees. Worker’s compensation policies protect employees, on the other hand, by ensuring that they will be compensated properly for any injuries they suffer while on the job.
Injured employees may be compensated for costs associated with their injuries, which may be medicals costs (physician and hospital bills, prescription costs, and the cost of physical therapy) as well as wages and income that they were unable to earn while they were recovering from their injury. Worker’s compensation policies may also be used to compensate the families of employees that die while on the job.
This requirement applies to companies that work in construction-related fields. This includes companies that do roofing, siding, and sheet metal work, as well as companies that to electrical work, landscaping and tree removal, plumbing, carpentry, and more.
Sometimes a company may be required to provide documentation to investigators hired by the State of Florida that proves that they have worker’s compensation insurance. These investigators are hired by the State for the specific purpose of keeping track of the status of companies’ worker’s compensation insurance policies.
If an investigator requests documentation that proves that a company has worker’s compensation insurance, the following documents may suffice to prove that they have coverage: the information page from the company’s worker’s compensation insurance policy, a screenshot from the Proof of Coverage page on the state database, or a Certificate of Liability Insurance.
The Cost of Worker’s Compensation Insurance is Based on Risk
The price of a worker’s compensation policy is based on the risk of injury associated with that industry. The National Council on Compensation Insurance assesses the risk associated with each industry and assigns codes to each, then the cost of insurance for each industry is assigned to each code group based on a formula.
The formula used to determine the price of insurance for an individual company is based on three factors. These factors are the risk of injury associated with a certain industry’s class code, the size of a company, and the company’s history with worker’s compensation claims (this is known as the “experience modification factor”). Prices of worker’s compensation insurance are given per $100 of an employee’s pay, then are scaled to match their yearly salary.
Penalties for Failing to Get Worker’s Compensation Insurance
Failing to provide worker’s compensation insurance for employees can result in penalties such as fines, lawsuits, or a stop-work order. Companies that fail to get worker’s compensation insurance for their employees are able to be sued by employees that weren’t covered. This means that the company will have to pay for costs associated with the employee’s injury out-of-pocket.
Companies may also face heavy fines from the State of Florida as a result of their failure to get worker’s compensation policies. The fines may be either $1,000 or double the amount that they would have paid in coverage over the period of time that employees went without coverage.
The most serious consequence a company can face as a result of failing to get worker’s compensation coverage for their employees is the loss of the right to conduct business. Florida may issue a stop-work order to companies that don’t have worker’s compensation insurance. This will require them to cease all business operations until they comply with the Florida Administrative Code.
It should be noted that there are also dire consequences for companies that attempt to claim that employees are independent contractors so that they don’t have to pay for worker’s compensation insurance for them. Falsely claiming that an employee is an independent contractor is a type of insurance fraud, which can result in jail and fines up to $5,000.
Worker’s Compensation Insurance Policies for Roofing, Siding, and Sheet Metal Work Contractors + Companies
NPN Brokers wants to help roofing, siding, and sheet metal work companies find the right worker’s compensation policy. If you provide some information about the age of your business, when you want coverage to start, the industry that your company works in, and the number of employees that need coverage, you can get a quote on the price of a worker’s compensation policy immediately. Call (866) 340-9120 to learn more.