How Does Workers’ Compensation Insurance Work in Florida?

As an employer in Florida, it’s important to understand how Workers’ Compensation insurance applies to you. Once you do, you can learn how to make coverage work in your best interests.

Workers’ Compensation insurance in Florida works by protecting both employers and employees after a workplace injury. Though only certain businesses are required to purchase Workers’ Compensation insurance based on risk factors like industry and payroll, all companies should get it. The process of getting Workers’ Compensation insurance in Florida can be a complex one, which is why seeking help from our skilled brokers is wise. Instead of choosing a plan based on need, employers can get a Workers’ Compensation insurance policy that works for them and their employees by partnering with our Florida brokers.

At NPN Brokers, we care about helping employers get the necessary Workers’ Compensation insurance. To learn more about the Florida Workers’ Compensation insurance brokers at NPN Brokers, call today at (561) 990-3022.

What is Workers’ Compensation Insurance and How Does it Work in Florida?

In Florida, Workers’ Compensation insurance exists to protect both employers and employees. Companies purchase a policy through which workers can file a claim if they are injured on the job. Though beneficial to both groups, Workers’ Compensation insurance can safeguard employers after a workplace accident.

Workers’ Compensation coverage is an insurance policy, like any insurance policy. Employers purchase it to get protection in case of a workplace injury. Employees then have an easy pathway for recovery if hurt at work. Employers are subsequently protected from financial liability. Essentially, it’s a win-win for everyone involved.

In Florida, certain parties are required to purchase Workers’ Compensation insurance. That said, having coverage is ideal for all companies, regardless of their industry or payroll. In reality, workplace accidents might happen anywhere, so it’s important for employers to be prepared and get Workers’ Compensation insurance in Florida.

Florida’s Workers’ Compensation insurance system is complex. It’s full of confusing requirements and serious penalties for non-compliance. As your company changes, so might its Workers’ Compensation insurance needs, making it vulnerable to consequences and financial liability for an employee’s injuries. To stay covered and informed, employers can partner with our brokers to help navigate the Florida Workers’ Compensation insurance system.

How Does Workers’ Compensation Insurance Work for Construction Companies in Florida?

Workers’ Compensation insurance requirements are relatively strict for construction companies in Florida. Learning how the system works for your business is crucial, especially if you operate within Florida’s construction industry.

In Florida, all construction companies are required to purchase Workers’ Compensation insurance, regardless of payroll. That includes construction companies comprised of just one employee in Florida. This is because construction is considered a high-risk industry, with inherent dangers that increase the chances of an employee sustaining a work-related injury.

So, Workers’ Compensation insurance coverage is always mandatory for construction companies, and there are no exceptions to this rule. While certain corporation owners or LLC members might be able to file for an exemption from coverage for themselves, employers in the construction industry must have a policy for their employees.

How Does Workers’ Compensation Insurance Work for Non-Construction Companies in Florida?

For non-construction companies in Florida, Workers’ Compensation insurance requirements are based on payroll. In general, non-construction companies in Florida with four or more employees must purchase Workers’ Compensation insurance, except agricultural companies.

Nearly all non-construction companies, apart from those in the agricultural industry, must get Workers’ Compensation insurance coverage in Florida if they employ four or more employees. This includes a wide variety of businesses, from restaurants to retail stores. So, whether you work in an office or a movie theater, you may need to get Workers’ Compensation insurance if you employ four or more workers in Florida.

The rules for agricultural businesses differ slightly. In Florida, agricultural businesses with six or more annual employees or 12 or more seasonal employees must purchase Workers’ Compensation insurance.

For small and medium businesses, slight changes in payroll can make Workers’ Compensation insurance coverage necessary in Florida. To learn whether or not your non-construction business needs coverage, speak with our Florida Workers’ Compensation insurance brokers.

How Does Workers’ Compensation Insurance Work for Independent Contractors in Florida?

As an independent contractor, knowing how Workers’ Compensation insurance might work for you is important. In Florida, there are no mandates requiring independent contractors to purchase Workers’ Compensation insurance. However, that doesn’t mean that independent contractors should remain uncovered in Florida.

Independent contractors are automatically excluded from Florida’s Workers’ Compensation insurance system. They are also not permitted within the construction industry in Florida.

However, getting Workers’ Compensation is still important for independent contractors in Florida. Without a larger company behind you, you may be personally liable for any losses due to a work-related injury. Workers’ Compensation insurance can work for you as an independent contractor by giving you vital protection in the event of an accident.

Although Workers’ Compensation insurance isn’t a requirement for independent contractors in Florida, independent contractors can opt into the system. Our Florida Workers’ Compensation insurance brokers can explain how this process works and the benefits of choosing to get coverage as an independent contractor.

How Does Workers’ Compensation Insurance Work for Sole Proprietors in Florida?

Depending on your industry and payroll, you may or may not have to purchase Workers’ Compensation insurance as a sole proprietor in Florida. How the system works for sole proprietors and sole proprietorships in Florida is complex, which is why it is wise to consult with our experienced brokers.

Suppose you own a sole proprietorship that’s not in the construction industry and employ less than three workers, including yourself. In that case, you will not be required to purchase Workers’ Compensation insurance in Florida. Alternatively, suppose you are a sole proprietor in the construction industry. In that case, you will have to get Workers’ Compensation insurance in Florida, even if you work alone.

That said, all sole proprietors should get Workers’ Compensation in Florida, regardless of payroll or industry. In a sole proprietorship, there is no legal distinction between an owner and their company. Suppose you or an employee are injured in a workplace accident and you don’t have Workers’ Compensation insurance coverage. In that case, you may be personally liable for any losses incurred. To prevent this from happening, our Florida small business Workers’ Compensation insurance brokers can help sole proprietors get the insurance they need to stay protected.

How Does the Process of Getting Workers’ Compensation Insurance Work in Florida?

If you’re unfamiliar with the process of getting Workers’ Compensation insurance in Florida, you might become overwhelmed. Our brokers can help employers navigate the process so that they can find coverage that works for them and their businesses.

Gather Information

The first step in getting Workers’ Compensation insurance in Florida is gathering records. To make the process work smoothly, employers should compile certain information regarding their business and its practices. Have the following information on hand before you get Workers’ Compensation insurance in Florida:

Company name
Company address
Employer identification number
Payroll
Employee responsibilities

Our brokers can help your company determine which employees must be covered under a Workers’ Compensation insurance policy by assessing your company’s payroll. Gathering the necessary information beforehand is crucial, to make the entire process of getting Workers’ Compensation insurance in Florida easier.

Get Quotes

Once you feel prepared, you can begin requesting quotes from insurance carriers. This can be a process in and of itself, as employers may not know which Workers’ Compensation insurance carriers to work with and how to best reach out to them. Our Florida Workers’ Compensation insurance brokers have relationships with reliable, flexible carriers that can provide you with quotes fast. This can be ideal for employers that need immediate coverage but don’t know where to look.

Evaluate Policies

Evaluating premiums and assessing a Workers’ Compensation insurance policy is the final step in getting coverage in Florida. Employers unfamiliar with how this step works might become frustrated when faced with various premiums and policies, unsure which is preferable. Our brokers can help you evaluate quotes from carriers to ensure you don’t pay too much for insurance and that the necessary employees are covered.

How Does Calculating Workers’ Compensation Insurance Work in Florida?

Calculating Workers’ Compensation insurance in Florida works by evaluating certain risk factors and plugging all that information into an equation. Some risk factors are weighed more heavily than others and have a stronger influence in calculating the price of Workers’ Compensation insurance premiums in Florida.

Industry

The first and perhaps the most influential factor to consider when calculating the cost of Workers’ Compensation insurance in Florida is a company’s industry. Some industries, like construction, are considered more dangerous than others. This allows some Workers’ Compensation insurance carriers to hike up the cost of coverage.

In Florida, a company’s industry-related risk is determined by a code from the National Council on Compensation Insurance (NCCI). Based on your business’s operations, our Florida Workers’ Compensation insurance brokers can identify the appropriate NCCI code and its corresponding rate for your company to start estimating the price of your premiums.

Payroll

The more workers you employ, the more likely it is that one of them will sustain a work-related injury. Because of this, payroll is a large factor in determining the cost of Workers’ Compensation insurance in Florida. Many Workers’ Compensation insurance carriers use broad, annual payroll estimates to help calculate the cost of premiums, which can seem unfair to employers.

As an alternative, our Florida Workers’ Compensation insurance brokers have relationships with carriers that offer pay-as-you-go insurance. This type of plan works by using real-time changes to payroll to determine cost. Instead of payroll working against you when getting Workers’ Compensation insurance, it can work in your favor when you get a pay-as-you-go plan.

Age

To some Workers’ Compensation insurance carriers in Florida, a company’s age indicates risk and might influence the cost of coverage. The newer your business is, the less time it has had to prove itself as capable of maintaining a safe working environment for its employees. While this might seem unfair, especially if your company needs coverage from the get-go, it might be considered when determining the cost of your Workers’ Compensation insurance, depending on the carrier you choose to work with.

History

Companies with histories of work-related injuries in Florida might face higher Workers’ Compensation insurance premiums. Previous claims from injured employees may indicate risk to insurance carriers, causing them to increase a quote. Alternatively, years without an employee accident can work in a company’s favor, convincing a carrier to drop the price of premiums.

Workplace accidents may have little to do with a company’s safety practices. Sometimes, accidents have more to do with industry. For example, despite maintaining a safe and responsible work site, companies in the construction industry might see higher numbers of work-related accidents in Florida. High-risk businesses with histories of workplace injuries still deserve affordable Workers’ Compensation insurance in Florida, and our brokers can help them get it.

How Do Exemptions from Workers’ Compensation Insurance Work in Florida?

In some cases, certain LLC members and corporation owners can file for an exemption from Workers’ Compensation insurance in Florida. While it may be beneficial to learn how this process works, employers should generally stay covered under their company’s Workers’ Compensation insurance policy.

Exemptions in the Construction Industry

In order for LLC members and corporation owners in the construction industry to qualify for an exemption from Workers’ Compensation insurance in Florida, their companies must be registered and listed as active with the Florida Department of State, Division of Corporations. Both corporation owners and LLC members in the construction industry must own at least 10% of a company in order to file for an exemption from Workers’ Compensation insurance in Florida. No more than three corporation owners or LLC members from the same company can be exempt from coverage simultaneously. When you file for an exemption, there cannot be any active stop-work orders or working-in-violation orders against your company. There is also a $50 fee to file for a Workers’ Compensation insurance exemption in Florida.

Exemptions in Non-Construction Industries

There are fewer criteria for corporation owners and LLC members in non-construction industries to file for an exemption from Workers’ Compensation insurance in Florida. The first requirement is that a corporation owner or LLC member’s company must be registered and listed as active with the Florida Department of State, Division of Corporations. LLC members filing for an exemption must have at least 10% ownership of their company. There is no percentage ownership requirement for corporation owners of non-construction companies to file for an exemption from Workers’ Compensation insurance in Florida. That said, neither LLC members nor corporation owners can have an active stop-work order or working-in-violation order against their company when they file for an exemption from Workers’ Compensation insurance coverage in Florida.

How Does the Process of Getting Proof of Insurance Work in Florida?

Getting proof of Workers’ Compensation insurance in Florida is important so that your employees, clients, and the necessary agencies know you have adequate coverage. But how does this process work?

In Florida, employees need only contact their Workers’ Compensation insurance carrier to get proof of insurance, also known as a certificate of insurance. This certificate is separate from your Workers’ Compensation insurance policy and proves that you meet the coverage requirements in Florida.

After you purchase a policy, our Florida Workers’ Compensation insurance brokers can help you get proof of insurance from your carrier. The following information is included on a certificate of insurance:

Policyholder’s information
Workers’ Compensation insurance carrier
Workers’ Compensation insurance policy number
Workers’ Compensation insurance policy limits
Workers’ Compensation insurance policy effective date
Workers’ Compensation insurance policy expiration date

Because employees and potential clients may request proof of insurance, it’s important for employers to get a copy of this certificate from a carrier after purchasing Workers’ Compensation insurance in Florida.

How Do Penalties for Non-Compliance with Workers’ Compensation Requirements Work in Florida?

Suppose you do not get Workers’ Compensation insurance in Florida. In that case, whether you’re required to have coverage or not, you might face certain consequences. Employers should learn how potential penalties work, so they understand the importance of avoiding them by getting the necessary insurance.

Financial Penalties

Florida takes compliance with Workers’ Compensation insurance requirements very seriously. If you are mandated to have coverage and fail to get it, you may face expensive financial penalties. The Florida may impose a penalty equal to twice the amount you should have paid in Workers’ Compensation insurance premiums for any period you were uncovered over the past two years. Additional financial penalties and jail time are possible for employers who fail to comply with Workers’ Compensation insurance requirements in Florida.

Stop-Work Orders and Working-in-Violation Orders

When employers are mandated to get Workers’ Compensation insurance in Florida and fail to do so, they may have to deal with stop-work orders or working-in-violation orders. These orders work by effectively stopping all operations until a company gets the necessary Workers’ Compensation insurance in Florida. A stop-work-order or working-in-violation order might alert employees and clients of your lack of coverage, causing additional issues for your business.

When an order is issued, and employers need insurance fast, certain carriers might hike up premiums, making finding affordable coverage difficult. Suppose your company was recently given a stop-work order or working-in-violation order and needs a policy immediately. In that case, our Florida Workers’ Compensation insurance brokers can help.

Financial Liability

Workers’ Compensation insurance works by protecting employers and employees in case of a workplace injury. When a company has Workers’ Compensation insurance, whether because it’s required to or has opted into the system, an injured employee can file a claim instead of a lawsuit. This effectively alleviates employers of financial liability after a workplace accident in Florida.

If you don’t have coverage, there’s not much protecting your business from being responsible for a worker’s losses after an accident at work. If you don’t have comprehensive insurance, you may be financially liable for a worker’s injuries, regardless of your Workers’ Compensation insurance requirements in Florida.

How to Make Workers’ Compensation Insurance Work Best for You in Florida

Though Workers’ Compensation insurance might initially seem like an unavoidable business expense, you can take steps to lower the cost of premiums for your benefit. Partner with our Florida Workers’ Compensation insurance brokers, and you can make your policy work for you.

Getting Workers’ Compensation insurance is important for businesses, and carriers know that. So, some Workers’ Compensation insurance carriers might increase costs for certain high-risk businesses in need of coverage. At first, you might think that paying for expensive Workers’ Compensation insurance is the only option. In reality, that’s not the case.

When you partner with our experienced brokers, you can find Workers’ Compensation insurance that’s comprehensive, flexible, and affordable. Our brokers have relationships with carriers that don’t require audits, contracts, or deposits and offer affordable plans to high-risk businesses.

Choosing a pay-as-you-go Workers’ Compensation insurance policy can help you cut costs by basing monthly premiums on up-to-date payroll information, not annual estimates. Even businesses with histories of workplace accidents might be able to opt for this type of coverage, thus getting affordable insurance despite their past.

Although a necessary expense in many cases, employers can still make Workers’ Compensation insurance work for them if they know the right steps to take. Our brokers can help you understand the ins and outs of Florida’s Workers’ Compensation insurance system so that you can make the best coverage decisions for your business and its employees.

Call Our Florida Brokers to Get Workers’ Compensation Insurance Today

If you need Workers’ Compensation insurance in Florida, our brokers can help. To learn more about the Florida Workers’ Compensation insurance brokers at NPN Brokers, call today at (561) 990-3022.