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Workers’ Compensation insurance in Florida: is it required?

Jun 20, 2023 · 6 minutes to read

Workers’ compensation insurance in Florida is required for businesses with more than four employees. All businesses that do construction work, including contractors and independent workers, must be covered.

If you have a business with three employees or fewer, it might seem like a great deal to not pay for worker’s compensation. However, you may be responsible for any expenses if either you or your employee is injured on the job.

It’s important to understand how much workers’ comp pays in Florida to make an informed decision. Consider the cost of workers’ compensation in Florida compared to the out-of-pocket expenses that you could incur if you were injured.

Florida workers’ compensation can cover:

  • Emergency Treatment
  • Medical Bills
  • Lost Wages
  • Death benefits

In the city in which you work, or for certain licenses and certifications of your business, workers’ compensation may also be required. Clients may also ask for proof of insurance before signing a contract with you.

Get a free quote online and explore your options or continue reading to find out more.

What types of businesses buy Workers’ Compensation in Florida?

Workers’ compensation insurance can provide financial protection to almost any type of Florida business, whether or not it has employees.

Construction businesses are required to carry insurance in Florida because they have a higher risk of injury at work than other businesses. To obtain a license for general contractors in the state, a certificate must be presented.

Florida Construction Workers’ Compensation Requirements

Florida law requires that every construction company carry workers’ compensation insurance for all employees, including contractors and independent workers. You may exempt up to three corporate officers if they own at least 10% of your company.

Importance of Workers’ Compensation for Florida construction businesses

Stats from the Florida Division of Workers’ Compensation show the importance of having a policy in place for construction companies. The figures show the average cost of claims for 2017.

Temporary Disability Claims: $19 727

Death Claims: $75,874

Permanent Benefits Claims: 601,721

Worker’s compensation for agricultural businesses in Florida

Florida has specific requirements because agricultural work can be seasonal. You are required to provide workers’ compensation if you have six or more employees, or twelve or more seasonal workers who work more than 30 calendar days a year.

Worker’s compensation insurance for professional services in Florida

Even though it is not mandatory, professional services, consultants, and other businesses that have a lower risk for workplace injuries may choose to purchase coverage. accidents can cause injury anywhere, even in desk jobs.

You may also be asked by many clients or professional organizations to show proof of workers’ compensation insurance before you can do business.

Florida sole proprietors can get workers’ compensation coverage

Workers’ compensation is often thought to be only useful for businesses with employees. While it is legal to skip workers’ compensation if you are a sole proprietor it can still be beneficial for owners who do not have employees.

Workers’ compensation may cover the loss of income for that month if, for instance, you are a fitness trainer and you sustain an injury in a personal training session.

Florida Workers’ Comp exemption

Certain business owners, officers, or members of an LLC are eligible for workers’ compensation exemptions. This would, however, make them ineligible to receive coverage after an accident at work.

Medical insurance or personal funds would be required to cover any lost wages or medical costs.

To be exempt from the Florida Division of Workers’ Compensation, you must file an exemption request.

How does Florida Worker’s Compensation work?

According to the data provided by Florida, between 12,000 and 17,000 workers’ compensation claims are filed each year.

Workers’ compensation can cover expenses related to injuries sustained at work for both employees and business owners. If a worker dies at work, the insurance can pay for burial and other costs up to the limits of coverage.

Workers’ compensation insurance can cover:

  • Medical costs
  • Loss of Income
  • Retraining
  • Permanent injury
  • Survivor benefits

For example, you own a small business of plumbers with a couple of employees. An employee is on the job and slips on wet ground and they hit their head on a sink. To make sure the injury is not serious, the employee visits the emergency room. Workers’ compensation will cover emergency medical expenses up to the policy limits.

Workers’ compensation doesn’t cover situations where the injured person has violated company policies or committed misconduct, or if they have used drugs or alcohol.

How much does workers’ comp pay in Florida?

The Florida Division of Workers’ Compensation determines the maximum amount of income benefits that can be received with Florida workers’ compensation.

Temporary total disability means that a doctor has confirmed that the injured worker cannot work due to a work-related accident. The injured person can receive two-thirds of their average weekly salary for up to 104 weeks.

A doctor’s assessment that an injury won’t improve in a significant way can make them eligible for permanent disability. The benefits are based on the doctor’s impairment rating and can be up to 75%.

Total permanent disability occurs when a person is permanently disabled from working. The government will cover up to two-thirds of a person’s average wage until the age of 75.

Workers’ comp death benefits

Workers’ compensation pays up to $150,000 to the dependents of a deceased employee.

What are the penalties for not having Workers’ Compensation coverage?

The Division of Workers’ Compensation can issue a stop-work directive if you fail to provide workers’ compensation when required by Florida law. According to state data, stop-work orders are issued about 2,500 times per year. That’s an average of seven times every day.

Businesses that receive a stop-work notice must close down until they comply. Some cases could result in a fine of twice the estimated cost of workers’ compensation insurance for two years.

Employees can still sue for medical bills or lost wages even if you do not have to provide workers’ compensation based on Florida’s worker’s compensation laws.

Workers’ compensation insurance may cover an employee who breaks his ankle and requires surgery. Your employee may sue you if you do not have a current policy and demand that you pay for their medical costs. This could result in significant financial losses over the long term.

What is the cost of Workers’ Compensation insurance in Florida?

Workers’ compensation costs differ across industries because the risk of an injury at work is higher for certain occupations. The following factors can influence the price:

  • The number of employees, and the types of work that they do
  • Your insurance claim history
  • The locations where you conduct your business

BizInsure offers Florida workers’ compensation insurance designed to meet the requirements of thousands of businesses.

You can get a quote for free to find out how much your coverage will cost.

How BizInsure can help Florida businesses

BizInsure provides workers’ compensation coverage for small businesses and independent workers.

Our team of licensed insurance advisors in the United States is ready to help you.

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