Workers’ Comp Insurance with 1099 Employees in Florida

Most 1099 contractors in Florida are not required to get worker’s compensation policies. However, 1099 employees are required to get worker’s compensation policies if they work in the construction industry or a construction-related field. Florida’s NPN Brokers are aware of the difficulty that 1099 employees often face while searching for suitable worker’s compensation policies while working in the construction industry or a related field. To make it easy for 1099 employees to find policies that can ensure that they will be covered if they suffer from an injury while they are working, NPN Brokers is proud to offer fast and easy quotes on worker’s compensation policies.

1099 contractors and owners of businesses that do work in the construction industry or a related field should visit NPN Broker’s website to learn more about the policies that are available to them and how they can get a quote on a policy within minutes. Call (561) 990-3022 to become more familiar with the services that NPN Brokers can offer you as a 1099 employee.

1099 Employees Only Need Workers Comp in Certain Industries

According to the Florida Administrative Code, companies that do work in the construction industry or a construction-related field (such as carpentry, electrical work, plumbing, and more) must get worker’s compensation insurance if they employ even one person. The one person that is employed may be a full-time or part-time employee, or it may be a general contractor, subcontractor, or 1099 contractor. Note that 1099 contractors in Florida are only required to get worker’s compensation insurance if they work in the construction industry or a related field.

The requirement that all employees and contractors must have worker’s compensation insurance applies exclusively to the construction industry and businesses that are in construction-related fields. Businesses and contractors that do work in the agricultural industry must get worker’s compensation insurance if they employ at least six people full-time or twelve people seasonally. Businesses and contractors that do work in industries that are not construction or agriculture must get worker’s compensation policies if they have four or more employees or contractors.

The Purpose of Worker’s Compensation Policies for 1099 Employees

Worker’s compensation policies exist so that employees will not be entirely responsible for the costs associated with the injuries that they suffer while working. Worker’s compensation policies allow injured employees to recover medical costs that result from their injury, including prescription medications, rides in ambulances, physical therapy, and visits with physicians and specialists. Injured employees can also partially recover the wages that they’ve lost while they were unable to work while recovering from their injury. If an employee dies while they are working, their family will be able to recover the cost of the funeral (up to $7,500) as well as money for dependents. Pain and suffering are not included in worker’s compensation policies.

If employees self-inflict their injuries so that they can receive worker’s compensation benefits, they will be ineligible for those benefits. Employees will also be ineligible to receive benefits if they were drunk or under the influence of drugs when the injury occurred or if they refrained from following safety protocol. Employees have a statute of limitations that limits the amount of time that they have to file a worker’s compensation claim. Employees that have been injured while working have two years to file a claim following their injury; employees that were mentally incompetent, minors, or misled about the terms of their insurance coverage can have the statute of limitations extended.

Who Is a 1099 Employee in Florida

Independent contractors are those that meet certain criteria. The State of Florida regards a person to be an independent contractor if they meet at least four of the following criteria:

  1. Their success depends on the relationship between their receipts and expenditures
  2. They have recurring liabilities or obligations connected to their business
  3. They experience a profit or loss connected to the work that they do
  4. They are compensated on a per-job basis
  5. They are responsible for completing work satisfactorily
  6. They incur the expenses related to their work
  7. They have agreed to perform services in exchange for compensation
  8. They are compensated for their work or services on a competitive-bid basis
  9. They have no need to complete the employment application process
  10. Their business has more than one bank account that exists for the purpose of paying expenses
  11. They receive financial compensation for the work they perform
  12. They have a federal employer ID number
  13. They maintain their own facilities for working or their own vehicle, equipment, or materials

How to Determine the Price of Worker’s Compensation Policies

The prices of worker’s compensation policies are determined by the level of risk associated with each job and the business’s history with worker’s compensation claims. Businesses and contractors that work in a field that carries a high level of risk can expect to pay more for their worker’s compensation policies. The level of risk that comes with each industry is determined by the National Council of Compensation Insurance.

If a contractor or business has filed worker’s compensation claims in the past (their “experience modification factor”), they can expect to pay more for their policies. Both the severity and volume of claims made in the past will be taken into account when determining the price of a policy. Businesses or contractors that have been working for less than three years can also expect to pay more for their worker’s compensation policies.

Call for Information About Your 1099 Employee Worker’s Compensation Policy Today

NPN Brokers is dedicated to helping 1099 employees (as well as subcontractors, general contractors, and employees) find worker’s compensation policies that can cover the costs associated with injuries that occur while they are working. If you would like a quote on a worker’s compensation policy, you can enter some basic information on NPN Broker’s website and receive a quote virtually immediately. You can call (561) 990-3022 to speak with a representative about the services that NPN can offer.