Workers’ Compensation Policy Coverage for Construction Sub-Contractors in Florida
The state of Florida is unique in that all employers in the field of construction with at least one employee are required to provide worker’s compensation policy coverage for their employees. This includes employers that employ sub-contractors to do most of their work. It can be difficult for employers to find insurance companies that provide this type of coverage, as the work can be risky and is a liability.
NPN Brokers are here to help. They can provide a quote for worker’s compensation policy coverage for your company, no matter how big or small. Get in touch with us for more information about getting a worker’s compensation policy by calling (866) 340-9120 or visiting our website.
Why Your Construction Company Needs Worker’s Compensation Insurance for Sub-Contractors
According to Rule 69L-6.021 of the Florida Administrative Code, any company that works in a construction-related field and employs at least one person is required to have a worker’s compensation policy; this applies to both general contractors and sub-contractors.
Under the law, construction-related fields are broadly defined and include landscapers, wallpaper hangers, heating and air conditioning professionals, roofers, and farm machinery operators. All businesses that are considered construction-related are subject to the conditions of Rule 69L-6.021 in the Florida Administrative Code.
It should be noted that this requirement applies only to employees in the field of construction; agricultural companies are only required to provide a worker’s compensation policy if they employ at least six people, while any other type of company that has at least four employees must provide worker’s compensation coverage. Any subcontractor that hires someone else to do part of their work is required to provide worker’s compensation insurance.
Businesses should know that there are steep consequences to failing to acquire worker’s compensation policy coverage for employees. Employers and those working with sub-contractors should be aware that state investigators are able to inspect and examine business records for any business across the state. Furthermore, the Florida Department of Workers’ Compensation has a Proof of Coverage database that keeps track of companies’ policies.
What Can Happen If a Business Doesn’t Provide Worker’s Compensation Coverage
If a business doesn’t provide worker’s compensation for their employees, then they may be required to pay claims to injured employers out-of-pocket. They may also face fines from the state of Florida, which may cost either $1,000 or twice the amount that the employer would have paid in premiums for worker’s compensation for the length of time that they didn’t have a policy.
Declaring that an employee is an independent contractor in an attempt to avoid paying for worker’s comp insurance could result in a $5,000 fine. Employers that don’t have worker’s compensation coverage may also face imprisonment, lose their right to conduct business in the state of Florida, or face charges of insurance fraud.
Finally, a business that doesn’t have a worker’s compensation policy may have a stop-work order issued against them, which will force them to cease business operations until they comply with Florida state laws. It’s also possible for businesses that don’t have worker’s compensation coverage to be sued by employees.
Required Documents to Prove You Have Coverage for Sub-Contractors
There are a few documents that employers should keep on hand to prove that they have worker’s compensation insurance for their employees. The first is a copy of the information page from the sub-contractor’s worker’s compensation insurance policy. The second document is a screenshot of the Proof of Coverage database, which can be found on the website of the Division of Workers’ Compensation. Subcontractors or employers can find this on their own.
The third document that can serve as proof of coverage is a Certificate of Liability Insurance, which must include the personal information (name, address, and phone number) of the producer, the name of the carrier that is providing the policy, the name of the insured, the policy number, the limits of coverage in dollars, the signature of an authorized representative, and the dates over which the sub-contractor will perform the work. Contractors are advised to keep all of this paperwork on hand in case it is requested by a state investigator.
Get a Sub-Contractor Worker’s Compensation Insurance Policy Fast
Finding the right worker’s compensation policy for your company can be a challenging endeavor. The state of Florida requires employees to have coverage but does not require insurance carriers to provide that coverage for companies that seem to be a potential liability. Construction companies are frequently denied coverage from insurance companies because of the risk of employee injury.
NPN Brokers can help you navigate the world of worker’s compensation coverage. We can help your company get a customized rate that is tailored to the needs of your business, which will ensure a rate that’s as affordable as possible. We can get coverage for almost any type of business, regardless of its size or level of risk.
Contact NPN Brokers Today For Quick Workers’ Comp Coverage
Getting a worker’s compensation policy for your business shouldn’t have to be stressful. Allow NPN Brokers to do the hard work of finding a good policy for you so you can focus on maintaining a profitable, productive business. Contact us at (866) 340-9120 today or visit our website for more information.