Short-Term Workers’ Comp Policies for Out-of-State Contractors in Florida
It is not uncommon for out-of-state contractors to take on jobs in Florida. When this happens, contractors might need to acquire short-term Workers’ Compensation policies.
You might need to get a short-term Workers’ Compensation policy if you are an out-of-state contractor temporarily working in Florida. This is because you will become subject to Florida’s Workers’ Compensation rules. Generally, Workers’ Compensation policies last for a year. With pay-as-you-go Workers’ Compensation, you reduce the amount you pay for insurance as an out-of-state contractor. You can also cancel your policy when you no longer need it. Suppose you do not comply with Florida’s Workers’ Compensation rules as an out-of-state contractor. In that case, you will likely be subject to financial penalties and other consequences from the Division of Workers’ Compensation.
Call our Florida Workers’ Compensation insurance brokers at (866) 340-9120 to speak with NPN Brokers about getting coverage today.
Why Might You Need a Short-Term Workers’ Comp Policy as an Out-of-State Contractor in Florida?
When you have employees operating in Florida, even if you primarily do business in another state, you must comply with Florida’s Workers’ Compensation laws. So, if you are a general contractor completing a project in Florida, you may have to get a Workers’ Compensation policy there.
Suppose you are a general contractor that took a job in Florida, even if you live in another nearby state. In that case, you will have to comply with Florida’s rules regarding Workers’ Compensation coverage. General contractors in non-construction industries need Workers’ Compensation if they have four or more workers. General contractors in the construction industry need Workers’ Compensation if they have even one employee. If you hire subcontractors to work in Florida, you must ensure they have the proper Workers’ Compensation that complies with Florida’s rules. Otherwise, they will be considered your employees, and you will be liable for covering any injuries they might sustain on the job.
Because of this, you might need short-term Workers’ Compensation coverage for the duration of an out-of-state project in Florida. Our Florida Workers’ Compensation insurance brokers can assist you with this, helping you to find a temporary policy that does not break the bank but keeps you and your employees covered. If you are unsure whether or not you have to purchase Workers’ Compensation as an out-of-state contractor, which is understandable as rules regarding coverage vary from state to state, contact our brokers to get the clarification you need.
What is the Shortest Workers’ Comp Policy You Can Get as an Out-of-State Contractor in Florida?
Generally, Workers’ Compensation policies last for an entire year. While you might be hard-pressed to find a shorter Workers’ Compensation policy as an out-of-state contractor working in Florida, there are ways to reduce the amount you will pay for coverage.
Workers’ Compensation policies generally span a year. While you can renew a policy after the first year, this will not be necessary if you temporarily work in Florida as an out-of-state contractor.
Pay-as-you-go Workers’ Compensation can benefit out-of-state contractors working temporarily in Florida. With this type of insurance, you will only pay for coverage for workers you currently employ operating in the state. So, once a project is over and you no longer have employees working in Florida, your Workers’ Compensation premiums should drop drastically.
Another way to get around this issue is by canceling your Workers’ Compensation policy once you no longer need it. You can do this by contacting your Workers’ Compensation policy provider and informing them that you no longer need coverage. However, if you are an out-of-state contractor living near a state border just outside of Florida, keeping the Workers’ Compensation policy might benefit you. In doing so, you can more easily take on jobs in Florida and remain covered, despite living and doing business in other states.
What if You Do Not Get a Short-Term Workers’ Comp Policy in Florida as an Out-of-State Contractor?
The Division of Workers’ Compensation fines any person or business that does not comply with workplace liability insurance mandates in the state, including out-of-state contractors temporarily operating in Florida.
If you do not get a short-term Workers’ Compensation policy while working in Florida as a contractor and are required by Florida law to get insurance, you could be fined. These fines equate to twice the amount you should have paid in Workers’ Compensation for any time over the past two years that you were uncovered. This fine might be relatively low if you are an out-of-state contractor, as you most likely were not operating in Florida for too long. However, the penalties will be more expensive than simply getting Workers’ Compensation when required to.
Furthermore, those found to be out of compliance with insurance mandates will likely be given a stop-work order. This order will delay any project until a contractor obtains the proper Workers’ Compensation coverage. As an out-of-state contractor, a stop-work order might seriously disrupt your progress and become very costly. There might be additional financial penalties attached to a stop-work order as well.
On top of penalties from the Division of Workers’ Compensation, out-of-state contractors with employees working in Florida will be held responsible for any injuries a worker sustains while operating in the state. Even if you would not have been liable for such injuries in your primary state of operations, you will be financially responsible if the injuries occur while an employee is working in Florida. This is because Florida law takes precedence in such situations. Contractors injured in Florida may not be eligible to get benefits from a Workers’ Compensation policy they have in their primary state of operations, making getting short-term Workers’ Compensation in Florida of the utmost importance for out-of-state contractors.
Call NPN Brokers for Workers’ Comp Policies in Florida
Contractors can call (866) 340-9120 to learn how the Florida Workers’ Compensation insurance brokers at NPN Brokers can help you.
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