The Basics of Florida’s Workers’ Compensation Rules

Florida’s workers’ compensation laws aren’t difficult, but they can be confusing if you’ve never dealt with them, If you’re starting out your new business or beginning to expand your company, here are the basics you’ll need to understand.

When you consult with an insurance professional, they’ll ask questions about your company so here are a few questions you should be able to answer.

• Is your business considered a construction business? Here is a link to trades that are considered construction jobs.
• How many people do you have on payroll? Differentiate between full-time and part-time employees.
• Do you hire subcontractors? They need to be insured, but most times you aren’t required to pay for the insurance.
• Does your company do regular out-of-state business? Often, the out-of-state work is covered by Florida workers’ comp coverage.

Do you need to buy workers’ compensation insurance?
If you are in a construction trade and employ one or more people, you need to purchase compensation insurance. If you own your own business and don’t employ anybody, your health insurance will cover you.

If you aren’t in a construction trade, and you employ four or more people, you need to purchase a plan.

People with agricultural businesses need to have the insurance if they employ six or more employees and/or 12 seasonal employees. A seasonal employee is somebody who works more than 30 days a year but less than 45 days a year. The days don’t have to be consecutive.

What is the cost of the insurance?
Three factors are determining the cost of your insurance policy.

• The size of your payroll
• What type of work your company does
• Your history of workers’ compensation claims

Also, Florida law is specific about paying for workers’ comp insurance. The employer is responsible for paying for the premium. You may not deduct wages from an employee’s paycheck to pay for their coverage.

What injuries does the insurance cover?
The insurance will cover all legitimate injuries incurred at work and not fraudulent. Each incident of an employee injury is unique with its own set of circumstances. However, if the employee is injured while performing their job, the injury isn’t fraudulent and wasn’t caused by intoxication or drug use, it will be covered.

If an injury occurs at your company, it’s essential you immediately document it along with the names of any witnesses. Your insurance company may want to conduct an investigation and will find the information helpful.

Complaints of “pain and suffering,” fear, anxiety, and stress are not covered. Furthermore, you cannot be sued by an employee for their injury. The purpose of workers’ compensation is for the employee to be able to get immediate treatment for their injury without having to wait for a court settlement.

Aren’t all workers’ comp policies the same?
No, there is a lot of variation between industries and businesses. Not only because of the differences in payroll and classification of work, but also because of the amount of the policy the employer wants to purchase and the follow-up and aftercare from the insurance company.

There are many companies offering workers compensation insurance, contacting an insurance professional will help you choose the right company for your business.

Flagler Financial is a premium insurance broker and financial professional serving the central Florida area. If you are in the market for a new or revised workers compensation policy, we encourage you to contact us.