Florida Workers Compensation Insurance

As a business owner, I assume, you do everything you can to protect your employees from potential dangers.  Do you have workers compensation protection?  Most business owners understand that workers compensation is important, but did you know that if you have employees, it is required by law for most businesses. The requirement is based on the number of employees a company has, and the industry in which they work.  The premiums are based on the amount of payroll paid to the employees.

• Construction Industry – Must obtain Workers Comp if one of more part or full time employees are employed.  Sole proprietors, partners, and corporate officers are considered employees.  In this industry only, members of an LLC are considered corporate officers; therefore, they may elect to exempt themselves from Workers Comp.

• Non-Construction Industry – Must obtain Workers Comp if four or more part or full-time employees are employed.  Corporate Officers may elect to exempt themselves from coverage.  Sole proprietors and partners are not considered employees and may also exempt themselves.

• Agricultural Industry - Agricultural employers with five or more regular employees and/or 12 or more seasonal employees, who work for more than 30 days, must obtain workers' compensation coverage for those employees.

• Out-of-State Employers - Any construction industry employer having one or more part- or full-time employees performing work in Florida is required to obtain a Florida policy through a Florida-licensed insurance company. The company must use the Florida job classification codes, approved manual insurance premium rates, rules, and manuals prior to beginning work in Florida. If the construction industry employer has an out-of-state policy, the insurance company must be licensed in Florida, and Florida must be listed in Section 3A of the policy.

The Division of Workers’ Compensation enforces employer compliance.  Stop-Work Orders, ceasing all business operations, may be issued if a Division of Workers Comp inspector determines that an employer lacks the required Workers Comp coverage.  A Stop-Work Order may also be issued if the employer understates or conceals payroll, misrepresents or conceals employee duties, or otherwise attempts to avoid paying for or providing Workers Comp.  Along with the Stop-Work Order, penalties and/or criminal charges may be filed for such actions.

Workers Comp can save you and your business from costly lawsuits and problems with your employees.  It protects your business AND your employees, which are likely a huge part of the framework of your company.