How Much Is Workers’ Comp Insurance for a Small Business?
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Small businesses in Florida often have trouble finding affordable workers’ compensation policies. Since the price of workers’ compensation varies depending on the industry that a company does work in, many owners may wonder how much it will cost to get workers’ compensation insurance for their small business. To learn about the prices of workers’ compensation policies in different industries in Florida, how those prices are determined, what is covered in a workers’ comp policy, and how you can get a quote in only a few minutes, continue reading as the Florida workers’ compensation brokers at NPN Brokers explain.
The Cost of Workers’ Compensation Insurance for Small Businesses
It’s likely that your business needs workers’ compensation insurance in Florida. Almost every business that operates in the Sunshine State must provide workers’ compensation insurance for its workers, especially if they employ four people or more. However, there are a few exceptions and special rules that apply to specific industries:
- Agricultural companies must have workers’ comp for their employees if they employ at least six people year-round or at least twelve people seasonally.
- Construction-related companies must have a workers’ compensation policy if they employ at least one person. Contractors, sub-contractors, and independent contractors are generally considered to be employees and must have workers’ comp coverage; they may also buy it for themselves. This requirement applies to all Florida companies that do construction-related work, including landscaping and tree removal, heating and ventilation, plumbing, carpentry, electrical work, and others. Companies may exempt up to three corporate officers from their workers’ comp requirements if those officers can demonstrate a minimum of 10% ownership of the company.
The price of workers’ compensation in Florida is determined by a few factors, namely the risk associated with the job that each employee does, the size of the company’s payroll, and the company’s history of claims. The risk of an employee’s job is determined by the National Council on Compensation Insurance (NCCI), which assesses the level of danger in every possible profession. They use a detailed classification system to calculate rates based on any employee’s risk of injury while on the job. Riskier jobs therefore face higher prices; since the construction industry and many related fields carry a higher risk of injury than other industries, small businesses in this line of work can expect to pay more for a workers’ compensation policy.
Another factor that affects the price that a company pays for its workers’ compensation policy is its claims history, which determines its “experience modification factor.” Companies that have faced workers’ compensation claims within the past five years can expect to pay more for their policy. The company that provides you with your workers’ compensation policy will determine your rate based not only on your experience modification factor but also on the severity of each claim. Companies that have been in business for less than three years can also expect to pay higher rates for their workers’ compensation policies because they do not yet have an established record.
What Is Included In a Workers’ Comp Policy?
Workers’ compensation policies are necessary because they cover the medical costs (ambulance rides, physical and occupational therapy, medication, stays in the hospital, visits with physicians, etc.) associated with injuries that employees suffer while on the job. Workers’ compensation policies also partially recover the wages that injured employees lose while they are unable to work following their injury.
Workers’ compensation policies do not cover damages for pain and suffering, but they may cover death benefits if an employee dies while on the job. These benefits are issued to the family of the deceased person and can include up to $7,500 for the funeral and up to $150,000 for dependents.
There are certain conditions that can prevent employees from receiving workers’ compensation benefits. If an employee suffers a self-inflicted injury, suffers an injury because they failed to observe safety rules or wear safety equipment, or is hurt while drunk or under the influence of drugs, they will not be eligible to receive benefits through workers’ compensation.
A statute of limitations is in place for filing workers’ compensation claims. Employees can file claims no later than two years following their injuries. There are exceptions to the statute of limitations, however. If the worker who was injured was a minor, was mentally incompetent, or was misled by their employer about the extent of their coverage, they may have a longer time window to make their claim. Also, companies in Florida should note that there are severe penalties for not having workers’ compensation insurance.
Get a Workers’ Compensation Policy for Your Small Business with NPN Brokers
To get a quote on a workers’ compensation policy right away, visit the NPN Brokers website. You just need to enter some basic information about your business and its employees to get a quote on workers’ compensation policies in a few minutes. You then have 24 to 48 hours to secure the quoted price if it appeals to you and your business. You won’t have to deal with a contract, deposit, or audit from policy providers, and you can pay for your coverage as you go.
Small businesses in Florida know that they can depend on NPN Brokers for fast, affordable quotes on a workers’ compensation policy that will protect both their business and their employees. If you are a small business owner who is in the process of obtaining workers’ compensation insurance for yourself or your employees, get in touch with NPN Brokers as soon as possible by calling (866) 340-9120.