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Am I Required To Have Workers’ Comp Insurance For My Business?

Am I Required To Have Workers' Comp Insurance For My Business?

Understanding the various insurance requirements for your business is important to stay in compliance with state laws. Workers compensation insurance is a requirement for companies in Florida if you have four or more employees, whether they are full-time or part-time. However, there are a few special considerations to the law involving the construction and agriculture industry.

Construction businesses need to carry workers’ compensation insurance for each employee and contractor. It’s possible for a construction company to exempt three corporate officers if they can prove ownership of at least 10% of the business. Additionally, construction contractors are also responsible for making sure that their subcontractor offers workers’ compensation for each one of their workers.

Agricultural businesses also need to understand the guidelines for workers’ compensation insurance to stay in compliance with the law in Florida. For example, agricultural companies with at least six or more employees are required to offer workers’ compensation. In addition, an agricultural business with twelve or more seasonal employees that work over 30 days but no more than 45 days in a calendar year is also required to provide coverage.

The Role of Workers’ Compensation Insurance
Workers’ compensation insurance plays a key role in providing benefits to employees that may suffer a job-related injury or illness. These insurance benefits can help pay for numerous items, such as lost wages, medical costs, legal fees, and even funeral expenses. It can also cover treatment for repetitive stress injuries related to the job or pay for physical therapy to help with ongoing treatments. Workers’ compensation can also pay for a permanent disability that’s keeping your employee from being able to go back to work.

Exceptions to the Law for Workers’ Compensation
One thing to keep in mind is that sole proprietors and partners are excluded from Florida’s worker’s compensation law if they file for a certificate of election for being exempt. However, they can still obtain coverage if they desire by filing for an election of coverage by contacting The Division of Worker’s Compensation. Reaching out to an insurance agency is a great option if you have any questions or concerns related to workers’ compensation.

What Happens If You Don’t Offer Workers’ Compensation?
Failure to meet workers’ compensation requirements in the state of Florida can result in harsh penalties for your business. State investigators can perform a job site investigation at any time by speaking with your employees, and they also have the power to subpoena your business records. 

Steep fines can be issued for violating workers’ comp requirements in Florida. These fines are double what the employer would have paid in premiums for the amount of time they didn’t have a policy in the previous two years, or it will be a minimum fee of $1,000, whichever amount is greater. Additionally, a $5,000 fee is also issued for each worker that’s been falsely labeled as an independent contractor. As you can see, these fees can quickly add up and cost your business a significant amount of money. 

A stop-work order is often issued to the business until they become compliant with the law, as this forces your company to cease all operations. This can often damage your reputation and make a negative impact on your bottom line, as some businesses are unable to recover from these penalties. The safest option is to always comply with the law by using an insurance agent to help you find affordable workers’ compensation insurance for your business.

The Division of Workers’ Compensation in Florida
One of the main roles of The Division of Workers’ Compensation in Florida is to ensure each business has the available resources for workers’ comp programs. This organization is able to help employers, health care providers, injured workers, and insurers stay in compliance with Florida laws involving workers’ compensation. These professionals can answer a wide range of questions, such as when an injured or sick employee can receive benefits and they can also provide numerous forms involving workers’ compensation.

Contact Flagler Financial to Learn More About Workers Compensation
Flagler Financial is a boutique insurance agency that works with a variety of businesses in Flagler County and the surrounding areas. We are also licensed to serve businesses throughout the vast majority of the United States. Our goal is to help your company succeed with the use of our insurance services and our top-quality customer support. 

Our company is focused on building strong connections with each client by developing a personalized plan to meet your individual needs. The team at Flagler Financial understands the importance of working with business owners to help implement and manage employee benefit and insurance offerings.

We offer numerous insurance options, whether you need human capital management, workers comp, life insurance, estate protection, payroll administration, health insurance, buy-sell agreement funding, and business valuations. Our team has many years of experience in the insurance industry, and we are always happy to answer any of your questions.

Feel free to contact Flagler Financial today to learn more about workers’ compensation insurance in Florida!