How to Get Workers’ Compensation Insurance in Florida

Florida’s Workers’ Compensation insurance laws are relatively strict, especially regarding penalties for non-compliance. So, if your company is required to get Workers’ Compensation insurance, it’s important to learn how to find comprehensive coverage fast in Florida.

Getting Workers’ Compensation insurance in Florida can be a complicated process. Businesses can prepare for the cost and learn how to identify an adequate policy from an experienced broker. Your broker can help you compile your business information and get and evaluate quotes from insurance carriers. Based on your business’s needs and other limitations, an experienced broker can match you with an affordable, comprehensive policy. Depending on your business’s industry and other specifications, it may or may not be required to have coverage in Florida. That said, purchasing Workers’ Compensation insurance is always wise to protect your business in the event of a workplace injury.

Our experienced brokers are here to help Florida businesses get the insurance coverage they need. To learn more about the Florida Workers’ Compensation insurance brokers at NPN Brokers, call today at (561) 990-3022.

How Can You Get Workers’ Compensation Insurance in Florida?

Getting Workers’ Compensation insurance in Florida can be a long process. Before you begin requesting quotes from insurance companies, there are several things you should do. First, prepare for the cost. Workers’ Compensation insurance rates can vary depending on your business’s industry, age, payroll, and history, so it’s important to understand the general rates you’ll face in Florida. Next, gather any business information that an insurance carrier may need. Then, contact insurance companies. Finally, evaluate your quotes and choose a policy that works best for your Florida business.

Prepare for the Cost

Before you get Workers’ Compensation insurance in Florida, it’s important to prepare for the cost. An experienced Florida Workers’ Compensation insurance broker can help you estimate the potential price of premiums for your business by taking several things into account.

Industry is the first thing that matters when determining the cost of Workers’ Compensation insurance in Florida. Companies in more dangerous industries, like construction, are considered high-risk. When employees are at a greater chance of sustaining a workplace injury due to the nature of their work, insurance premiums are likely to start high.

The next thing to consider regarding the price of your Florida Workers’ Compensation insurance premiums is the number of people you employ. In the eyes of insurance companies, the more workers you employ, the greater the risk of a workplace injury occurring. Payroll is one of the biggest factors in determining the cost of Workers’ Compensation coverage for Florida businesses.

The age of your business also matters. Newer companies can be riskier to insure, regardless of their industry. Because your Florida business has not had time to prove that it is a safe environment for workers, its initial Workers’ Compensation insurance premiums may be high.

Finally, your business’s history matters. If your Florida business has a history of workplace injuries, the price of its premiums is almost guaranteed to rise. Taking the time to consider industry, payroll, age, and history, can help your Florida business prepare for the potential cost of Workers’ Compensation insurance.

Gather Business Information

When dealing with insurance companies, it is best to be prepared. Because of that, it’s important that you gather all of your Florida business’s information before getting Workers’ Compensation insurance. Florida companies should compile the following information to simplify the process of getting Workers’ Compensation insurance coverage:

Federal employer identification number or Social Security number
Business name
Business location
Business description
Date coverage is needed
Payroll information
Loss experience

In addition to this basic information, an insurance company may ask for more details regarding your business and its history. In order to promptly answer any questions an insurance carrier may have in the future, business owners should speak to a Florida Workers’ Compensation insurance broker. Your broker can help you gather the necessary information to prepare you for getting Workers’ Compensation insurance in Florida.

Contact Insurance Companies

Contacting insurance companies to get Workers’ compensation coverage can be quite difficult. Generally, the process is easier when businesses turn to an experienced Florida Workers’ Compensation insurance broker. A skilled broker will have the connections and experience necessary to guide you in the right direction and navigate correspondence with prospective insurance carriers.

Florida business owners in need of Workers’ Compensation insurance may not understand how crucial it is to contact multiple insurance carriers for a quote. Instead, business owners may only speak with one carrier without knowing that others may provide more comprehensive coverage. All in all, contacting insurance companies and requesting coverage can be overwhelming, especially if you are running a business simultaneously. Business owners can rely on a trusted Florida Workers’ Compensation insurance broker to make the process easier and reduce stress.

Evaluate Quotes

After you receive a quote from a Workers’ Compensation insurance carrier, you must evaluate it. In Florida, insurance costs are based on a business’s annual payroll, divided by 100, and multiplied by the industry rate. Then, an Experience Modification Factor is applied to account for a business’s history of work-related injuries and other risk factors. The first part of this equation is relatively straightforward and can be referenced when evaluating quotes from insurance carriers. The Experience Modification Factor is less objective and is based on an insurance company’s risk estimation. That said, your Florida Workers’ Compensation insurance broker can estimate an appropriate Experience Modification Factor based on your business’s history to better evaluate the quotes you receive.

Generally speaking, accepting the first quote you receive from a Workers’ Compensation insurance company is not wise. This is especially true if your Florida business is not working with a skilled broker. Instead of accepting the first quote because your business needs coverage, allow your broker to evaluate all quotes to secure the best policy for the best price.

Understand Employer Responsibilities

Once you’ve chosen a Workers’ Compensation policy that meets your Florida business’s needs, the work is not done. Each time a workplace injury occurs, you must promptly inform your carrier. In addition, you must inform your insurance carrier of any changes to your business description or payroll. Maintaining open communication between your insurance carrier and employees is crucial in Florida. Failure to inform either party of important information or changes can result in serious consequences.

How to Get Affordable Workers’ Compensation Insurance in Florida

Getting Workers’ Compensation insurance in Florida is one thing. Getting affordable Workers’ Compensation insurance is another thing altogether. Finding a policy that will protect your business in the event of a workplace injury without impacting its finances is a tall task. Because of that, it’s important to find a Florida Workers’ Compensation insurance broker that is up to the challenge.

One of the reasons Florida businesses may find it so difficult to get Workers’ Compensation insurance is the high cost. When faced with expensive premiums, you may think forgoing coverage and hoping an employee isn’t injured on the job is preferable. Of course, that’s not the case. But what are business owners to do when unable to foot the bill for Workers’ Compensation insurance?

Instead of risking your business’s financial stability or success, turn to an experienced Florida Workers’ Compensation insurance broker. Our brokers have relationships with insurance carriers that provide affordable plans to various businesses, even those in high-risk industries like construction. Your Florida business can anticipate no deposits, contracts, or audits when it partners with our skilled brokers. Instead, your company can find a flexible, comprehensive plan that not only meets its financial needs but protects its employees.

Getting affordable Workers’ Compensation coverage is less likely when you try to do so independently. The time and energy it takes to evaluate quotes and negotiate with insurance companies can take your focus away from your responsibilities at work. Our brokers have the time and experience necessary to identify affordable, comprehensive policies. So, not only can your Florida business find affordable coverage by working with a skilled broker, but it can also avoid any consequences for non-compliance.

How to Get Workers’ Compensation Insurance Quickly in Florida

For Florida businesses, getting Workers’ Compensation insurance right away is crucial. The longer you put off getting coverage, the longer you have to wait to get your business off the ground. If you start operations without insurance, you risk your business’s stability. So, as a Florida business owner, it’s important to learn how to get Workers’ Compensation insurance as soon as possible.

Whether you’re just starting your business or need new coverage for an existing business, you likely need to find Workers’ Compensation insurance quickly in Florida. Having an impending deadline can make business owners act rashly and accept a quote that’s far too expensive. Or, business owners may find it impossible to find a comprehensive policy quickly and forego coverage altogether out of frustration. Either route is inadvisable.

Instead of wasting time and energy or risking your business’s success, turn to a trusted Florida Workers’ Compensation insurance broker. Our experienced brokers work quickly to get you a quote right away. Within a day or two of sending your business information to our brokers, your Florida company can receive a quote. Efficiency is key, especially for Florida businesses eager to open their doors. Our brokers understand this, so we prioritize fast results for businesses of all sizes and types.

How to Get Workers’ Compensation Insurance in Florida for Out-of-State Employers

Getting Workers’ Compensation insurance as an out-of-state employer can be complicated. Depending on your home state’s Workers’ Compensation laws, you may be required to purchase a Workers’ Compensation policy while operating in Florida temporarily.

Even if your business plans to operate temporarily out of Florida, it may need Workers’ Compensation insurance coverage. Whether or not you have to purchase another policy in addition to a policy from your home state will largely depend on your home state’s extraterritorial reciprocity clause. This clause, should it exist in your home state, can allow you to use your existing Workers’ Compensation insurance policy while operating out of Florida temporarily.

However, if your state does not have an extraterritorial reciprocity clause, you will likely need to purchase Workers’ Compensation insurance to comply with Florida’s laws. Getting Workers’ Compensation insurance can be more difficult for out-of-state employers, who may be unfamiliar with Florida’s Workers’ Compensation requirements and deadlines. To be sure your out-of-state business meets the necessary Workers’ Compensation requirements while operating in Florida temporarily, speak to an experienced Florida Workers’ Compensation insurance broker.

Which Companies Need to Get Workers’ Compensation Insurance in Florida?

Now that you know how to purchase Workers’ Compensation insurance in Florida, it’s worth understanding your business’s requirements. In Florida, only certain businesses are required to have Workers’ Compensation insurance coverage. Depending on your industry and the number of workers you employ, you may not be required to get Workers’ Compensation insurance in Florida.

Construction Companies

All businesses in the construction industry must purchase Workers’ Compensation coverage in Florida. This is the case, regardless of how many workers you employ. Construction is a broad industry, including several professions that may initially appear unrelated to construction. If you’re unsure whether Florida classifies your business as part of the construction industry, speak to a Florida Workers’ Compensation insurance broker. Getting coverage is crucial if required in Florida.

Agricultural Companies

In Florida, agricultural companies are required to purchase Workers’ Compensation insurance under certain circumstances. Any agricultural business that employs six or more regular employees, or twelve or more seasonal employees, must get Workers’ Compensation coverage in Florida. Whether or not your employees are considered seasonal will depend on the number of days they work in the calendar year.

Other Companies

All non-construction, non-agricultural businesses in Florida must purchase Workers’ Compensation insurance if they employ four or more workers. This applies to all types of businesses, from retail shops to grocery stores. Many small businesses with fewer than four employees are excluded from Florida’s Workers’ Compensation insurance requirements.

Do Independent Contractors and Subcontractors Need to Get Workers’ Compensation Insurance in Florida?

As an independent contractor or subcontractor working in Florida, you may be unsure about your Workers’ Compensation insurance requirements. Depending on your industry, you may be required to purchase Workers’ Compensation insurance as an independent contractor in Florida. Getting coverage as an individual can be challenging, so it benefits independent contractors to seek help from an experienced broker.

Independent contractors are excluded from Florida’s Workers’ Compensation coverage. Florida does not allow for independent contractors in the construction industry. If you are a sole proprietor in the construction industry, you must have Workers’ Compensation insurance even if you are the only employee of your business.

In Florida, all subcontractors in the construction industry are required to have comprehensive Workers’ Compensation insurance. That said, it is the responsibility of the primary contractor that employs each subcontractor to ensure sufficient coverage for all workers. If a subcontractor or worker is uncovered and subsequently injured at work, the primary contractor can be financially liable for damages in Florida.

Navigating insurance requirements for independent contractors and subcontractors in Florida can be complicated, especially since the rules can change depending on the industry. If you’re unsure whether or not you need Workers’ Compensation insurance as a contractor in Florida, ask our professionals for clarification.

Should You Get Workers’ Compensation Insurance for Your Florida Business?

Getting Workers’ Compensation insurance is not only reserved for Florida businesses that are required to have coverage. In fact, getting Workers’ Compensation insurance is a wise choice, even if your company is not required to purchase insurance because of its industry or the number of workers it employs.

Workers’ Compensation insurance can protect all Florida businesses, large and small. It doesn’t matter what industry your company is in. Workplace injuries can happen anywhere, from small retail shops to factory floors. Workers’ Compensation coverage acts as protection for all types of companies that may otherwise be financially liable for an employee’s expenses after a workplace injury.

So, even if your Florida company is not required to purchase Workers’ Compensation insurance, that doesn’t mean it shouldn’t. Florida only mandates coverage for businesses whose employers are more likely to experience workplace injuries. Although your employees may be less likely to sustain injuries on the job based on their work, there is always the chance that a workplace injury can happen. Should one occur and your business does not have Workers’ Compensation insurance, there will be nothing to protect your company from becoming liable for the cost of an employee’s injuries. Companies with Workers’ Compensation insurance can also appeal to prospective employees, who are likely to feel more comfortable working for a business that cares about their safety and security.

If you’re unsure whether or not to purchase coverage because you’re not required to, speak with a Florida Workers’ Compensation insurance broker. An experienced professional can explain the pros of getting insurance for your business, even if Florida doesn’t mandate coverage for you.

Can You File for an Exemption from Workers’ Compensation Insurance in Florida?

Although getting Workers’ Compensation insurance can seem overwhelming, especially considering the cost, there are ways to lower the cost for your business. For example, depending on your industry, you may be able to file for a personal exemption for yourself. This can ultimately lower the cost of coverage for your Florida business. That said, it’s important to note that filing for a personal exemption from Workers’ Compensation insurance will leave you vulnerable if you sustain a workplace injury.

If you own or co-own a construction company or non-construction company in Florida, you may be eligible to file for a personal exemption from Workers’ Compensation insurance. That means you can exclude yourself from coverage, ultimately lowering the number of employees insured under your company’s Workers’ Compensation insurance policy. This can make it easier to get coverage, as payroll is a big feature in determining the cost of coverage for Florida businesses. There are different rules for exemptions for corporation owners and LLC members, so it’s wise to speak with a Florida Workers’ Compensation insurance broker to learn about the filing requirements.

Generally speaking, there are fewer requirements for owners of non-construction companies than owners of construction companies when filing for personal exemptions from Workers’ Compensation insurance in Florida. Business owners should expect to pay a filing fee and to renew their exemptions every two years.

Filing for a personal exemption from Workers’ Compensation insurance is a risk. Although it can make finding coverage easier, it can also leave you vulnerable. If you, as an LLC member or corporation owner, are susceptible to sustaining a workplace injury because of your job, opting out of coverage may not be wise. If you do opt-out and sustain a workplace injury, you will not be covered by your company’s Workers’ Compensation insurance and thus will be financially liable for the cost of your injuries.

What Happens if Your Florida Business Does Not Get Workers’ Compensation Insurance?

If you don’t get Workers’ Compensation insurance when required in Florida, you can face serious consequences. Among the most severe are the financial penalties that Florida imposes for non-compliance. Failure to purchase coverage can result in stop-work orders, impacting your business’s success and tarnishing its reputation. Not having Workers’ Compensation insurance leaves your business vulnerable to legal troubles in the event of a workplace injury. Finally, failure to comply with Florida’s Workers’ Compensation requirements can compromise your workforce and result in criminal charges.

Financial Penalties

Failing to comply with Workers’ Compensation insurance requirements out of fear of the cost will only result in expensive fees. Florida takes non-compliance seriously, which is why it imposes steep financial penalties on businesses that go uncovered. The fine for non-compliance in Florida is double the amount you would have paid in premiums for any time your business was uncovered during the last two years, or a minimum fine of $1,000, whichever amount is greater. Florida also imposes financial penalties on non-construction businesses that falsely claim an employee is an independent contractor, wrongly exempting them from coverage.

Stop-Work Orders

When the Florida Division of Workers’ Compensation discovers your business is uncovered, it may impose a stop-work order. This means that all operations must halt entirely. Stop-work orders can impact your business’s revenue so severely that you have to shut down permanently. Not only can stop-work orders affect your business’s finances, but they can also affect its reputation. Clients and customers may be less inclined to use your business’s services because of its history of stop-work orders. This Florida penalty for non-compliance is serious and can permanently impact your company’s success. That is why being proactive and enlisting help from a Florida Workers’ Compensation insurance broker is wise, to prevent a stop-work order from ever impacting your business.

Stop-work orders can happen for a variety of other reasons as well, such as concealing payroll, mispresenting employee duties, and failure to pay insurance premiums.

Civil Lawsuits

One of the most serious consequences of failing to comply with Workers’ Compensation insurance requirements in Florida is the potential for civil litigation. If your business has coverage, an injured worker can simply file a Workers’ Compensation insurance claim in after sustaining a workplace injury. Workers’ Compensation insurance can eliminate the need for litigation entirely and compensate an injured employee for their lost wages and medical expenses. If you don’t have coverage, whether you are required to or not, an injured employee may be more inclined to file a lawsuit for compensation. Not only can this have a negative financial impact on your Florida business, but it can also affect its reputation and relationship with other employees.

Compromised Workforce

Many employees understand the importance of working for a company with comprehensive Workers’ Compensation insurance coverage. Potential employees may be less inclined to work for you if your business fails to comply with Florida’s Workers’ Compensation insurance requirements. This can also be the case for Florida businesses that are not required to purchase Workers’ Compensation insurance. Workers’ Compensation coverage protects employees and employers alike. If a prospective employee becomes aware that your Florida business is uncovered, they may be less likely to take the job. This can leave your business with a compromised workforce, impacting its success.

Criminal Charges

In Florida, it is against the law for employers to knowingly operate their businesses without Workers’ Compensation insurance when mandated. Because of this, Florida business owners that fail to comply with Florida’s Workers’ Compensation insurance laws risk criminal charges. Any violation of Workers’ Compensation laws, from non-compliance to failure to report injuries to an insurance carrier, can result in criminal charges in Florida. Avoiding criminal charges for non-compliance is possible when you get coverage through a reliable Florida Workers’ Compensation insurance broker.

Can You Still Get Workers’ Compensation Insurance After a Stop-Work Order in Florida?

If your Florida business has been served a stop-work order for non-compliance with Workers’ Compensation laws, don’t worry. Although stop-work orders can be hugely detrimental to Florida businesses, it is still possible to get Workers’ Compensation insurance and get a stop-work order removed.

If you’ve been served a stop-work order in Florida, all is not lost. While you can still get Workers’ Compensation insurance coverage and resume operations, you will only have a short time to do so. In Florida, employers that have been served a stop-work order have 21 days after receiving an order to petition for an administrative hearing. At this hearing, you will have to provide proof of coverage showing that you have purchased comprehensive Workers’ Compensation insurance for your Florida business.

Of course, that means you will have to get Workers’ Compensation insurance quickly. This can present challenges for Florida businesses, who may now face steeper premiums than they may have before. That’s because a stop-work order can’t be kept secret from insurance companies. So, when evaluating your company’s industry, payroll, and other risk factors, it’s likely that a recent stop-work order will come into play. This can make it hard to find adequate coverage that’s priced properly.

Contact a Florida Workers’ Compensation insurance broker to get coverage after a stop-work order. Instead of accepting the first quote from the first insurance carrier that you speak to, allow an experienced broker to handle finding insurance fast. That way, your Florida business can quickly respond to a stop-work order, so it doesn’t negatively affect your success or reputation.

Is it Ever Too Late to Get Workers’ Compensation Insurance in Florida?

While getting Workers’ Compensation insurance at the onset of your Florida business is best, that doesn’t always happen. Suppose you find yourself several years into a business endeavor without coverage. Or, suppose you are reeling from the aftermath of a recent workplace injury. In that case, you may wonder if it’s too late to get Workers’ Compensation insurance.

It is never too late to get the Workers’ Compensation insurance your business requires to comply with Florida’s mandates. After being served a stop-work order or fines, you can still get the coverage you need to set your company back on the right track. Even if a worker sustained an injury and you were uncovered, it only benefits your business to find a comprehensive Workers’ Compensation insurance policy to get protection moving forward. If you’re unsure where to start, reach out to our Florida Workers’ Compensation insurance brokers to learn more about getting covered.

It’s important to note that if you have gone without coverage and have not incurred any fines or penalties in Florida, that does not mean you won’t in the future. Inspectors from the Division of Workers’ Compensation within the Florida Chief Financial Officer’s Office perform routine inspections of worksites throughout the state. The Division of Workers’ Compensation also encourages workers and others to report instances of suspected non-compliance. Because employers are required to inform employees of their Workers’ Compensation coverage, failure to do so can be reported and penalized at any time.

Just because you don’t have coverage today doesn’t mean you won’t benefit from having Workers’ Compensation insurance tomorrow. Regardless of whether or not your Florida business is required to purchase Workers’ Compensation coverage, it’s best to err on the side of caution and get it.

Call Our Florida Workers’ Compensation Insurance Brokers to Get Covered Today

If your Florida business needs to get Workers’ Compensation insurance, our brokers are here to help. To learn more about the Florida Workers’ Compensation insurance brokers at NPN Brokers, call today at (561) 990-3022.