Is Workers Compensation Required in Florida?
October 31, 2022
Whereas the specific coverage requirements are based on the type of industry, number of employees and business entity, employers who conduct work in the State of Florida are required to provide workers’ compensation insurance for their employees.
This type of business insurance provides employees who are injured or become ill during the course and scope of their job to receive compensation for medical bills, lost wages, and rehabilitation expenses.
Under Florida law, most employers are required to purchase and maintain a workers’ compensation insurance policy that provides compensation for all occupationally incurred injuries, regardless of fault.
Employers Who Need Florida Workers Comp
Since each state determines the workers compensation laws for companies operating in their state, below is a closer look at the requirements for Florida workers comp insurance:
Companies with Four or More Employees – Whether full-time or part-time, businesses with four or more employees must carry workers’ compensation insurance. Business owners who are not sole proprietors (including limited liability corporations) are considered to be an employee, whereas business partners and sole proprietors are not considered to be employees.
Smaller Agricultural Employers – Agricultural businesses in Florida who have six or more regular employees and/or employ seasonal workers for more than 30 days but not more than 45 days during a calendar year must provide workers’ compensation coverage.
Contractors Across All Industries – Construction employers who have one or more employees (including all owners who are corporate officers or members of the LLC) are responsible for ensuring subcontractors have workers’ compensation insurance prior to the beginning of any work on a project. If not, the contractor is responsible for compensating an injured employee.
Generally speaking, the only businesses operating in Florida that are exempt from workers’ compensation insurance requirements are those with fewer than four employees. Employers using valid independent contractors are allowed under state law to file worker exemptions to avoid purchasing work comp coverage.
Managing Your Business Insurance Portfolio
Florida Workers’ Compensation insurance is purchased through private insurance carriers who are licensed by the state. Employers are normally required to pay a monthly premium based on class code and payroll. Workers comp is a crucial component of any business’s insurance portfolio as it pays for medical bills, recovery cost, and disability benefits for an injured employee. Moreover, in the event of an on-the-job fatality, it can cover funeral costs and pay death benefits to an employee’s family.
Self-insured employers are permitted in Florida but the company must apply to the Division of Workers’ Compensation and demonstrate their financial presence to ensure timely payment of benefits to any injured employee.
Even if you are self-employed in an industry with low risk levels for work-related injuries or have no employees, you may still want to discuss your personal needs for medical insurance with an independent agent... just in case the unexpected happens. Big or small, we've been serving businesses and organizations in Jacksonville, Ponte Vedra, Orange Park, St. Johns, Neptune Beach, Atlantic Beach, Mayport, and St. Augustine as well as those located in Nassau, Baker, and surrounding counties for decades.
Call Nsurance Nation today at 1-877-957-3487 to discuss your company’s specific needs for affordable workers’ compensation insurance.
