Do Businesses Need Workers’ Compensation Insurance in Florida?

Nov 19, 2020 · 4 minutes to read

SBA’s Office of Advocacy Small Business Profile Report 2022 states that there are a total of 3 million small businesses in Florida. That makes for 99.8% of all businesses present in the state. The report also states that the unemployment rate is lower than it has been in a long time.

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As businesses grow and the number of employees increases, employers must look out for the welfare of their employees. One way to do that—which is also mandatory, in many cases in Florida—is through worker’s compensation insurance. This article will address a question that is possibly on many small business owners’ minds: do businesses need workers’ compensation insurance in Florida? Let’s find out!

Which Businesses Need Workers’ Compensation Insurance in Florida?

Businesses of all kinds are succeeding in Florida. Construction, real estate, health care services, and food services are industries that are driving growth in Florida. Regardless of which industry your business belongs to, Florida has specific requirements for workers’ compensation insurance.

All Construction Businesses in Florida Require Workers’ Comp

If you have a construction business in Florida, you will have to acquire workers’ compensation insurance for your employees. This rule is mandatory, even if you have just one employee.

Workers’ Comp Requirements for Businesses in the Agriculture Industry

Businesses in the agriculture sector must also acquire workers’ compensation insurance for their employees in the following cases:

  • The company has six regular employees
  • The company has six regular employees and twelve seasonal employees. These employees must work for over thirty days during a particular season. However, they must not work for more than forty-five days in total during a calendar year

Workers’ Comp is Mandatory for Non-Construction Businesses That Have Four Employees

All non-construction businesses in Florida must have workers’ compensation insurance if they have four or more employees. Employers for out-of-state employees, i.e., employers from outside of Florida who have employees working primarily in this state, must also provide workers’ compensation insurance to their employees. If the employees have insurance coverage, workers’ comp is not mandatory.

What Does Workers’ Compensation Insurance Cover?

Workers’ compensation insurance protects your company and its employees. If any of your employees get injured at work or are ill, this type of insurance will cover their medical bills. It will also cover some of their lost income if they’re unable to work because of the injury.

If the injured employee sues your company, workers’ comp insurance will pay off the legal expenses you incur during the process. These expenses include attorney fees, settlements, and so on.

So, workers’ comp insurance covers:

  • Medical expenses for employees that get injured while at work
  • Lost income for your physically injured employees

While worker’s compensation is mandatory in most cases in Florida, it’s still a good idea to acquire it if your business does not require it, as it can save your company quite a bit of money if an accident occurs.

Do Sole Traders Need to Get Workers’ Compensation Insurance in Florida?

Whether sole traders need workers’ compensation insurance in Florida will depend on the nature of the business. As discussed above, all workers in the construction industry, sole proprietors included, need to have workers’ comp.

If you’re a sole trader who’s not in the construction business, you’re exempt from workers’ compensation insurance. However, you can apply for it by filing a Notice of Election of Coverage. This way, you can elect to be defined as an employee. To apply for an election, you must have the following requirements.

  • You must NOT be in the construction industry
  • You must be a sole trader (proprietor) or have a registered partnership with the Florida Division of Corporations

Workers’ compensation can help you save money if there’s an accident during work. So, applying for an election is in your best interest.

How is the Insurance Premium Decided for Workers’ Compensation Insurance in Florida?

Many factors contribute to the premiums for workers’ comp in Florida. Some of these factors include:

  • The payroll for the company
  • The work that the employees perform
  • The employer’s history of claims

Therefore, the cost of this type of insurance for employers is never the same. If you’re a business owner, you can acquire workers’ compensation insurance in Florida from an insurance agency.

Getting a Free Worker’s Compensation Insurance Quote

For those of you who are business owners in Florida and are looking for workers’ compensation insurance, you can get free quotes from Bizinsure. We are an insurance agency that helps you find the insurance you need.

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