Understanding Florida’s Workers Compensation System

Sometimes, Florida business owners get so busy dealing with other employee benefits like health insurance, life insurance, or a valuable pension plan that they forget about workers compensation insurance.

That’s unfortunate, because workers comp is a mandatory and valuable part of the protection that many business owners must legally provide for their workers. It is an integral part of Florida’s legal system, too, when it comes to personal injury law and employer-employee relations.

You don’t have to just settle for any old workers compensation package. There are over 250 companies offering such coverage in the state of Florida, and it can make a difference where you shop. But first, you need to become an informed shopper by understanding the basics of Florida workers’ comp law.

How Does Workers Compensation Insurance Work In Florida?
Workers compensation insurance is designed to compensate workers injured on the job or while engaged in job-related duties though off the actual job site. Accidental injuries at a factory or to an employer sent on a delivery errand, for example, might qualify as covered incidents.

Florida, like most US states, requires that most employers cover their employees with a workers’ comp policy. However, the exact requirements vary based on industry, type of business organization, and number of employees. For example, all construction workers must be covered, but only businesses with 4 or more employees must purchase a policy in non-construction industries. Also, agricultural businesses must provide coverage for their employees if they have either 6 regular workers or 12 seasonal ones.

But beyond legal requirements, it should be noted that workers compensation insurance protects businesses and business owners as much as workers. This is because employees who cover their employees with workers comp cannot normally be sued by covered employees who might be injured on the job. If the issue were discrimination or workplace harassment, a lawsuit could still be possible. And failure to maintain safe workplace conditions could lead to fines. But liability immunity is a basic part of “the deal” within the workers compensation system in Florida.

Note that workers comp insurance covers medical expenses for temporary or permanent disabilities as well as providing death benefits for workers who die of work-related injuries.

Injuries are compensated on a no-fault basis. This serves to protect both workers and business owners alike, so that it is a win-win situation for both parties.

How Does Workers Comp Law Work In Florida?
Every state has its own peculiarities as to workers compensation law, and Florida is no exception.

Below, we will go over the major points that serve to elucidate Florida’s workers comp system and to distinguish it from other states, which often differ on these kinds of legal details.

1. Statute of limitations. Workers have 30 days from the date of injury or date of discovery of injury to report it to their employer. They have up to 2 years to actually file for benefits.
2. Total temporary disability has a benefit limit of two-thirds weekly wages, while total permanent disability has a limit of 80 percent of pre-injury wages – minus any wages they still earn post-injury. Partial disability compensation is based on an impairment rating.
3. There are time limits too on compensation. 104 weeks is the hard limit, but psychiatric claims usually have a 6-month limit.
4. Benefits begin on the first day of the injury if the disability lasts for 22 days or more. Otherwise, they begin on day eight.
5. There is a maximum weekly compensation, based on statewide average wages, that went into effect in 2016. It is periodically updated, but this rule obviously affects whether other compensation-related rules will actually increase benefits or not.
6. The workers compensation insurer must approve of the doctor who will be treating the injured worker. Thus, employers need to research both insurance companies and the medical care they are tied to in order to do the best for their workers.
7. Employers are NOT required to hold the job of the injured worker until he or she is able to resume his or her previous duties. This is at the discretion of each business owner. This differs from many other states.
8. Injured workers do NOT have to prove that the employer was at fault to receive compensation but only that the injury occurred while they were working for their employer.
9. Florida’s workers compensation system is conceived as a form of wage-replacement so the livelihood of injured workers is not pulled out from under them when they need it most. It is not health insurance or life insurance and does not provide the same kinds of benefits as those insurance-types would.
10. The large majority of accidental injuries are covered by Florida workers comp insurance. There aren’t many exclusions. However, non-physical injuries are not covered unless they stem from a physical workplace injury that is covered.

How Do I Find The Best Florida Workers Compensation Insurance?
You need to find workers compensation insurance just to keep your business compliant with Florida law – in most cases. And you want a high-quality policy that is also affordable so you can better protect your workers and your business. But sifting through the options is where things begin to become difficult for the uninitiated – far better to get the assistance of experts who can guide you into making an informed decision of your own.

What are some of the key selection criteria when buying a new workers compensation policy for your business and your staff? Here are some of the most important questions you need to be asking:

• Which companies are more reputable? Ask an experienced insurance agent or broker to steer you clear of shaky insurers and straight to the best.
• Does this insurer deal extensively in my local area? Does this option have good connections with top, local medical providers that my workers will be happy with?
• Am I getting a truly competitive rate? Your agent can help you compare the rates of all available insurers in a short space of time. He or she can also give you advice on whether or not it’s worth paying a small amount more for certain providers.
• Does this insurer offer any group-rate or other discounts that your business would qualify for?
• What level of customer service does each workers compensation insurance candidate have? Do they have a history of processing claims fairly and quickly without unnecessary legal glitches?
• Will the insurer in question give you any helpful advice and guidance on maximizing the safety level of your workplace?
• Is the insurer “transparent” so that you, as the business owner and policy purchaser, can have easy access to all relevant facts about each claim and concerning the insurer’s overall modus operandi?

It’s important to stay informed about Florida workers compensation law and to keep up to date on the state of the insurance market in your state.

At Flagler Financial, we help you select the workers compensation insurance policy that best meets your needs and fits your budget. We also give you full, in-depth consultations that enable you to make an informed decision you will be satisfied with.