Does Your Company Need Workers’ Compensation Insurance in Florida?
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Although lax in some regards, Florida regulations are very strict where workers’ compensation insurance is concerned. The state has very specific requirements for who is required to carry the insurance, requirements that depend on a number of factors including the industry you work in, the type of work your employees do, and how many workers you employ. Luckily, the regulations are fairly straightforward, and a number of options exist for companies who need coverage, regardless of any extenuating circumstances.
Generally speaking, the laws surrounding workers’ compensation insurance place a greater burden on business that commonly have more dangerous work environments, and the rates for workers’ comp policies are higher commensurate with the increased risk. However, even safer businesses can struggle to meet the minimum requirements imposed by the state because of the expense this would impose. NPN Brokers offers a solution to this dilemma. With our connections and expertise, we can help get your employees insured at an affordable rate so you can get back to doing what you do best. To find out more about the services we offer, contact us today by calling 1 (866) 340-9120 or visit us online.
Requirements for Workers’ Compensation Insurance in Florida
Florida law lays out one general guideline concerning workers’ compensation insurance that applies to most non-construction and non-agricultural businesses. The rule of thumb is that a company with four or more employees must carry a workers’ comp policy for those employees. The number of employees counted under this rule must include any business owners who operate as corporate officers and any members of a limited liability company, or LLC. However, sole proprietors and those in a partnership do not have to count themselves toward the number of employees unless they want workers’ compensation coverage for themselves as well.
The standards for the agricultural industry are more relaxed than those for any other type of business. Owners of a business in this field are only required to provide workers’ compensation insurance if they have six or more regular employees or 12 or more seasonal workers. To qualify as a seasonal worker, the employee must work at least 30 days in a season but no more than 45 days in the calendar year.
The construction industry has the most stringent regulations where workers’ compensation is concerned. Any construction-related business that has at least one employee must provide workers’ compensation insurance. It is important to note here that the state lists 83 different classes of operations that qualify as construction-related; if any part of your business’s operations fall under one of these classifications, your business will fall under the strict requirements for construction businesses. To read the full list of construction operations, see Rule 69L-6.021 of the Florida Administrative Code.
Penalties for Failure to Comply with Workers’ Comp Requirements
While the costs of maintaining workers’ compensation insurance coverage for your employees can be costly, the price of flaunting the law can be even steeper. If your business is caught operating without the legally required insurance policy during a routine inspection by state investigators, thousands of dollars in fees could be assessed and a stop-work order could be issued.
The direct cost in fines and penalties can be upwards of $1,000 per day; a stop-work order can be even more damaging through a loss of profits and a potential hit to your reputation. Additionally, the state is empowered to file criminal charges against any employer who knowingly operates without proper coverage or purposefully mishandles workers’ comp claims.
These are only the consequences handed down by the state, however; costs can skyrocket if a worker is injured on the job without the benefit of workers’ compensation insurance. Two major motivators in making workers’ comp insurance mandatory is that it can protect employers from lawsuits and cover employees’ costs while they are out of work.
Without a workers’ comp policy, an employer can find themselves on the hook for an injured worker’s medical bills or missed income on top of the loss of productivity and damage to morale that can follow a workplace accident. All told, a single workplace injury can cost an employer tens of thousands of dollars without workers’ compensation insurance; staying insured can not only prevent legal trouble, but also save money in the long run.
Problems Obtaining Workers’ Compensation Insurance Coverage?
Even if you understand the need for workers’ comp insurance at your business, there are times where your choices may be limited. Even though the coverage is both mandated and regulated by the state, private insurers are still responsible for providing coverage – meaning that an insurance company has to agree to sell you a policy.
The costs of a policy can vary depending on whether your company has a history of workplace accidents, but new companies do not usually have the benefit of a clean record, or of any record at all. Insurers may therefore be reluctant to offer an affordable policy to a new business, or to one with a higher incidence of injuries – a roofing company, for example. NPN Brokers can find a policy that fits your company’s budget so you can be sure that both your employees and your bottom line are protected in the event of an accident or injury.
Let Us Get You the Workers’ Compensation Policy You Need
At NPN Brokers, we understand that as a business owner, have a lot on your plate; the last thing you want to do is get bogged down with insurance companies or state investigators looking to nickel and dime you, just so you can do your job. We have the knowledge and professional relationships to get you the coverage you need in as little as 24 hours. Give yourself the peace of mind that comes with knowing your workers’ compensation insurance policy is in place. Contact us today by calling 1 (866) 340-9120 or visit us online.