Florida's Workers Comp Insurance: Who's Covered?

Workers' compensation insurance is mandatory for most businesses in Florida. The requirements vary depending on the industry, the number of employees, and the type of business entity. For example, construction businesses must carry workers' compensation insurance for every employee, while non-construction businesses with four or more employees are required to have coverage. Agricultural businesses and employers with out-of-state staff working in Florida also have specific requirements. The cost of workers' compensation insurance in Florida is influenced by payroll, line of work, safety record, and other factors.

Who is required to have workers' comp insurance in Florida?

Workers' compensation insurance is mandatory for almost all businesses in Florida. The requirements vary depending on the industry, the number of employees, and the type of business entity. Here is a detailed overview of who is required to have workers' compensation insurance in the state of Florida:

Construction Industry:

Employers in the construction industry with one or more employees, including corporate officers and Limited Liability Company (LLC) members, are required to have workers' compensation coverage. This also includes contractors and subcontractors. Sole proprietors and partners in a partnership business within the construction industry are also required to have coverage unless they meet specific exemptions.

Non-Construction Industry:

Employers with four or more employees, including corporate officers, LLC members, and business owners, must carry workers' compensation insurance. Non-construction industry sole proprietors or partners are not considered employees and are therefore not required to carry coverage unless they choose to be included on the business's policy.

Agricultural Industry:

Agricultural businesses with six or more regular employees and/or twelve or more seasonal employees who work for more than 30 days in a season and no more than 45 days in a calendar year are mandated to provide workers' compensation coverage.

Out-of-State Employers:

Businesses operating in Florida but based in another state must notify their insurance carrier and obtain a Florida Workers' Compensation Insurance policy that meets the state's requirements. Some states have an extraterritorial reciprocity agreement with Florida, allowing employers to use their home state's coverage for staff working in Florida temporarily.

Exemptions:

Corporate officers and LLC members can apply for an exemption from workers' compensation coverage. The requirements differ for construction and non-construction businesses, with construction businesses having a $50 application fee per LLC member and a three-person limit per LLC. It's important to note that exemptions are granted to individuals and not the business, and they must be renewed every two years.

What does workers' comp insurance cover?

Workers' compensation insurance, also known as workman's comp, is designed to provide benefits to employees who are injured or become ill due to a work-related cause. This includes coverage for medical treatment, ongoing care, lost wages, disability benefits, and death benefits such as funeral costs.

In Florida, workers' compensation insurance is required for all businesses with four or more employees, including business owners who are corporate officers or LLC members. Construction businesses must carry workers' compensation insurance for every employee, including contractors. Agricultural businesses with six or more regular employees and/or 12 or more seasonal employees working for more than 30 days are also required to provide coverage.

• Medical Treatment: Workers' comp covers the costs of medical treatment related to work-related injuries or illnesses. This includes emergency room visits, necessary surgeries, prescriptions, and ongoing care costs such as physical therapy.
• Lost Wages: Workers' comp helps replace a portion of an employee's lost income if they need time off to recover from a work-related injury or illness. In most cases, the wage replacement benefits will be equal to two-thirds of the employee's regular weekly wage.
• Disability Benefits: Workers' comp provides benefits for employees who suffer a temporary or permanent disability due to a work-related injury or illness. This includes temporary total disability benefits, temporary partial disability benefits, and permanent impairment benefits.
• Travel Expenses: In Florida, workers' comp covers travel expenses to and from an authorized treatment center or pharmacy.
• Death Benefits: Workers' comp provides death benefits to the beneficiaries of employees who die as a result of a work-related accident. This includes funeral expenses and dependency benefits.

What doesn't workers' comp insurance cover?

In Florida, workers' compensation insurance is required for all businesses with four or more employees. Construction businesses must have coverage for every employee.

Now, what doesn't workers' comp insurance cover? While workers' compensation insurance provides benefits to employees who are injured or become ill due to a work-related cause, there are certain exclusions to coverage. These vary by state, but some common instances that are not covered include:

• Commuting: Injuries sustained while travelling to and from work are typically not covered by workers' comp. However, an exception may be made if the employee is in a company vehicle or doesn't have a fixed office, such as a travelling salesperson.
• Workplace fights: If an employee is injured during a fight with a colleague, workers' comp may not cover their injuries. However, if the fight was work-related, it may be covered.
• Intoxication or substance abuse: Many states do not provide coverage if the injured employee was intoxicated, and this contributed to their injury.
• Mental or nervous injuries: In Florida, workers' comp does not cover mental or nervous injuries caused by stress, fright or excitement.

It's important to note that each state has different workers' compensation laws, so it's always best to refer to the specific regulations in your state.

How much does workers' comp insurance cost?

In Florida, workers' compensation insurance is required for all businesses with four or more employees. Construction businesses, however, must have coverage for every employee. The cost of workers' compensation insurance in Florida is based on several factors, including the number of employees, the type of work performed, and the employer's claims history.

The average cost of workers' compensation insurance in Florida is $54 per month, but this can vary depending on the specific circumstances of the business. The cost is typically calculated per $100 of payroll, so a larger payroll will result in a higher premium. For example, workers' compensation insurance for employees in low-risk jobs costs about 26 cents per $100 in payroll, while employees in high-risk jobs can cost up to $19.40 for every $100 in payroll.

The type of work performed by employees also affects the cost of workers' compensation insurance. Jobs with higher levels of risk, such as construction or other physical labour, will result in higher insurance costs. This is because there is a greater potential for workplace injuries, illnesses, or death associated with these types of work.

Additionally, an employer's claims history can impact the cost of workers' compensation insurance. If an employer has submitted a large number of workers' compensation claims in the past, they will likely pay a higher rate. The severity of these claims will also be taken into account when determining the cost.

It is worth noting that the cost of workers' compensation insurance is not standard and can vary between businesses. Insurance companies consider various factors when determining premiums, so it is important for businesses to understand their specific requirements and calculate their expected costs accordingly.

What happens if a business doesn't have workers' comp insurance?

In Florida, workers' compensation insurance is required for all businesses with four or more employees. Construction businesses, in particular, must have coverage for every employee, including the owner of the business and contractors.

If a business that is required to carry workers' compensation insurance operates without it, it could face major penalties, including civil penalties, fines, or even jail time, depending on the state. In Florida, employers that operate without the necessary workers' compensation coverage risk civil penalties, typically in the form of a stop-work order, which requires all operations to cease until the business complies with the law and pays a penalty fee. This fee is usually equivalent to double the insurance premium the employer would have paid for the preceding two-year period. If the employer fails to comply with the stop-work order, it could result in criminal charges.

Additionally, injured workers could sue their employer for damages if the company is required to have workers' compensation insurance but does not. Without this coverage, businesses lose the protection against civil lawsuits provided by workers' compensation insurance.

Frequently asked questions