Who Needs Workers’ Compensation Coverage in Florida?

In Florida, compliance with Workers’ Compensation insurance requirements is important. That’s why companies should learn whether or not they need purchase Workers’ Compensation insurance and how they can find the best policy at the right price.

Although only certain companies need Workers’ Compensation insurance in Florida, all should get it. Construction companies need coverage, regardless of payroll, and most non-construction companies with four or more employees are required to purchase insurance in Florida. Need is largely based on risk factors, which can also help determine the cost of coverage. Learning whether your company needs Workers’ Compensation insurance is crucial, as the penalties for non-compliance are often severe in Florida. Our brokers can help your company find the coverage it needs to stay protected from consequences in the event of a workplace injury.

We’re here to match Florida companies with the right Workers’ Compensation insurance plan. To learn more about the Florida Workers’ Compensation insurance brokers at NPN Brokers, call today at (561) 990-3022.

Which Companies Need Workers’ Compensation Insurance in Florida?

In Florida, certain companies are required to purchase Workers’ Compensation insurance. Generally, mandatory coverage is based on two main factors: industry and payroll. Compliance with Florida’s Workers’ Compensation insurance requirements is crucial, as the consequences of insufficient coverage can be severe. To learn more about which companies need coverage, ask our Florida Workers’ Compensation insurance brokers for clarification.

Construction Companies

Regardless of payroll, all construction companies in Florida must purchase Workers’ Compensation insurance. This includes sole proprietors operating within the construction industry. Independent contractors are not permitted in the construction industry in Florida.

This means that even small construction companies, including those with just one employee, need to get Workers’ Compensation coverage in Florida. This is the case, as companies in the construction industry are generally at a higher risk for workplace accidents and injuries than other businesses.

Non-Construction Companies

The Workers’ Compensation insurance requirements differ when it comes to non-construction companies in Florida. Regarding non-construction companies, payroll is the main in determining the need for coverage. Apart from those in the agricultural industry, non-construction companies with four or more employees need Workers’ Compensation insurance in Florida. Non-construction companies in the agricultural industry in Florida need coverage if they employ six or more annual workers or 12 or more seasonal workers. Sole proprietors and independent contractors not in the construction industry are automatically excluded from the Workers’ Compensation insurance system in Florida.

These Florida requirements for Workers’ Compensation coverage apply to all non-construction and non-agricultural companies, regardless of industry. So, all retail stores, restaurants, small businesses, and other companies may have to purchase small business Workers’ Compensation insurance in Florida if they employ four or more workers.

Do Employers Need Workers’ Compensation Coverage for Themselves in Florida?

While certain employers need Workers’ Compensation coverage for their employees, do they also need insurance for themselves? In Florida, corporation owners and limited liability company (LLC) members can opt out of the Workers’ Compensation insurance system if they meet the necessary requirements. That said, doing so may not be wise.

Although there are stricter criteria for those in the construction industry, LLC members and corporation owners in any industry might be able to opt out of Workers’ Compensation insurance coverage. That means, although their employees will remain covered, employers can be uncovered if they file for an exemption and meet the necessary requirements in Florida. Generally, LLC members and corporation owners may wish to opt out of coverage to reduce their company’s Workers’ Compensation insurance premiums in Florida.

While opting out of coverage might be possible, it may also be a mistake. When employers forgo coverage for themselves, they risk being financially liable for their injuries in the event of a workplace accident. Suppose you opt out of coverage as an employer and are injured at work. In that case, you can’t file a Workers’ Compensation insurance claim to cover your losses.

Employers might think they don’t need Workers’ Compensation insurance, especially if they are not involved in day-to-day workplace events. In reality, workplace accidents might happen anywhere for any number of reasons. It’s best to stay protected and remain covered by your company’s Workers’ Compensation insurance policy as an employer in Florida.

Why Do Certain Companies Need Workers’ Compensation Coverage in Florida?

Certain companies are required to purchase Workers’ Compensation coverage in Florida because of their risk factors. Generally, industry and payroll indicate risk and, the higher the risk, the higher the need for insurance in Florida.

The likelihood of work-related injuries might increase depending on specific risk factors. For example, certain industries, like the construction industry, are inherently more dangerous than others. While serious workplace accidents might happen anywhere, they are more likely to occur in particularly dangerous workplaces. Construction workers interact with hazardous materials and machinery daily, making their line of work more dangerous than others.

The more workers your company employs, the higher the chances are that one of them will be injured at work. That’s why Florida mandates Workers’ Compensation insurance for most non-construction companies with four or more employees.

While these risk factors might seem unfair, they dictate whether or not companies need Workers’ Compensation coverage in Florida. Insurance carriers know that compliance is mandatory for certain companies, which can make finding affordable coverage difficult. In order to prevent your company’s industry or payroll from significantly impacting its insurance premiums, reach out to our Florida Workers’ Compensation insurance brokers. Just because you need coverage in Florida doesn’t mean you should pay too much for it.

Other risk factors, like a company’s age and history of workplace accidents, don’t make a company required to have Workers’ Compensation coverage in Florida. They can, however, contribute to the cost of it. Our Florida Workers’ Compensation insurance brokers can help you understand how certain risk factors, though not part of the equation when it comes to the need for insurance, do matter when it comes to the price.

How Can I Learn if My Company Needs Workers’ Compensation Coverage in Florida?

For some companies, it’s obvious whether or not they need Workers’ Compensation insurance in Florida. They might easily fit into an industry or category, while others do not. If you need to learn more about your company’s coverage requirements, our Florida Workers’ Compensation insurance brokers can help.

In Florida, many different types of companies are considered part of the construction industry. For example, certain types of painting and cleaning companies are deemed more dangerous than others and are part of the construction industry in Florida.

That’s because Florida uses definitions and categorizations from the National Council on Compensation Insurance (NCCI). So, what other you might not initially think your company engages in a type of construction work, the NCCI might.

Learning your NCCI code and its corresponding rate may be necessary to determine whether or not your company needs Workers’ Compensation insurance in Florida. Our brokers can assess your company’s activities and compare them to the NCCI’s definitions to determine if insurance is mandatory based on industry. Codes and rates might change as the NCCI’s definitions do or as your company’s work does, so it’s important to stay updated.

Will My Company Need Workers’ Compensation Insurance if Payroll Changes?

In any company, payroll may change. New employees are hired, and others move on. For large companies, payroll changes might impact premiums, but not whether or not Workers’ Compensation coverage is required. For smaller companies in Florida, a new hire might change its Workers’ Compensation insurance requirements.

Generally speaking, slight changes to a company’s payroll won’t determine if Workers’ Compensation insurance is needed in Florida. However, suppose your non-construction company just increased its payroll from three to four employees. In that case, you may be required to purchase coverage. Or if the opposite happened and you recently downsized, you might no longer be required to carry Workers’ Compensation insurance. That doesn’t mean, however, that you should let your coverage lapse in Florida.

Even if payroll changes alter your Workers’ Compensation insurance requirements in Florida, it’s wise to maintain coverage. If your company’s payroll changes frequently, paying a flat rate for a Workers’ Compensation insurance policy might seem unfair. Our Florida Workers’ Compensation insurance brokers understand that, which is why we have relationships with carriers that offer pay-as-you-go policies.

With a pay-as-you-go Workers’ Compensation insurance plan, your premiums will fluctuate as payroll changes occur. This can allow you to save on insurance premiums and avoid paying for workers you don’t employ while protecting those you do.

What Happens if a Company Doesn’t Get the Workers’ Compensation Coverage it Needs in Florida?

Florida takes compliance with Workers’ Compensation insurance requirements very seriously. If a company needs Workers’ Compensation insurance in Florida and fails to get it, it might face severe consequences. Expensive fines, detrimental stop-work orders, and financial liability for a worker’s injuries are possible when companies that need Workers’ Compensation insurance in Florida don’t get it.

Financial Penalties

Non-compliance with Florida’s Workers’ Compensation insurance requirements is a serious issue. If a company that needs insurance is found to be without it in Florida, the Division of Compensation Insurance might impose steep financial penalties. For non-compliance, the normal fine is twice the amount a company should have paid in insurance premiums for any period over the past two years it was uncovered. Clearly, the fines for non-compliance can get expensive quickly. In addition to financial penalties, employers that don’t comply with Florida’s Workers’ Compensation coverage requirements might face jail time.

Stop-Work Orders

Companies that need Workers’ Compensation insurance but don’t have it may face stop-work orders in Florida. These orders prevent companies from engaging in work of any kind until they get the necessary insurance coverage in Florida. A stop-work order can seriously impact a company, as revenue-earning operations must cease until insurance is acquired. If a stop-work order becomes known to your clients or employees, they may be upset and frustrated. Fortunately, stop-work orders are entirely preventable when companies get the necessary Workers’ Compensation insurance in Florida.

Financial Liability

Suppose you’re required to carry Workers’ Compensation insurance for your employees in Florida and fail to do so. In that case, your company may be financially liable in the event of a workplace injury. Filing a Workers’ Compensation insurance claim is often the easiest and only option for injured workers after a workplace accident. When a company is uncovered, however, things change. Suppose you don’t have Workers’ Compensation insurance. In that case, an injured employee might file a lawsuit, leaving you financially liable for their injuries and losses. Our Florida Workers’ Compensation insurance brokers can help you prevent that from happening by getting you the coverage you need.

How Can Companies Get the Workers’ Compensation Coverage They Need in Florida?

If your company needs Workers’ Compensation insurance, you might be unsure where to look. While non-compliance can lead to severe consequences, insurance premiums can seem unnecessarily expensive. Finding the right Workers’ Compensation insurance plan is possible when companies partner with our experienced brokers.

If you need Workers’ Compensation coverage in Florida, and insurance carriers know that, it can be hard to find coverage. Our Florida Workers’ Compensation insurance brokers appreciate the difficulty, and can help pair your company with the right plan at the right price.

Even when Workers’ Compensation insurance is required, you can still find a policy that doesn’t require audits, contracts, or deposits in Florida. A flexible pay-as-you-go plan can help you save on monthly premiums while keeping all employees covered.

Sometimes, companies that need Workers’ Compensation insurance in Florida need it fast. If an impending stop-work order threatens to hinder your company’s operations or a lack of coverage is causing other issues, reach out to our brokers. After getting the necessary information, our brokers can get you insurance quotes within a matter of days. Together, we can evaluate quotes and policies so that your company can get the Workers’ Compensation insurance it needs as soon as possible in Florida.

Call Our Brokers if You Need Workers’ Compensation Insurance in Florida

If your company needs 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.