Florida workers’ compensation insurance

Workers’ compensation is a crucial part of small business insurance because it can pay for medical bills, recovery costs, and disability benefits if an employee is injured at work. It can also cover funeral costs and death benefits for an employee’s family in the event of a fatality on the job.

By mandating this insurance coverage, Florida officials provide an incentive for businesses to keep employees safe and reduce the risk of lawsuits against business owners. That means that your small business insurance can:

• Cover medical expenses if an employee is injured
• Provide disability benefits while the employee is recovering, or if permanently disabled
• Pay legal expenses if an employee files a lawsuit related to a work injury or illness (because workers' comp includes employer's liability insurance)
• Comply with applicable workers’ comp laws

Insureon helps a variety of industries compare quotes and buy Florida workers’ compensation insurance policies. Whether you own a dental practice, photography studio, convenience store, or something altogether different, we can help you find a policy to meet your business needs.

Whether or not sole proprietors, independent contractors, and other self-employed individuals are required to have workers’ compensation insurance depends on the nature of the work being performed.

The state of Florida requires that even self-employed workers in the construction industry carry workers’ compensation insurance. If you’re in an industry that has less risk of workplace injuries and you have no employees, you might still decide that it’s a good idea to have coverage.

Though you may have health insurance, if you get injured on the job, workers’ compensation coverage can help with lost wages and other expenses that would not be covered under your regular medical policy.

Additionally, here's what your workers' comp policy won't cover:

• Injuries caused by intoxication, drugs, or company policy violations
• Injuries claimed after a firing or layoff
• Wages for a replacement worker
• Occupational Safety and Health Administration (OSHA) fines

Insurance providers use a specific formula for calculating workers' comp premiums:

To save money on workers' comp insurance, it's important to make sure you classify your employees correctly. Employees with desk jobs or other jobs with a low risk of injury cost less to insure. This also helps you avoid misclassification fines.

In some cases, small business owners can choose to buy pay-as-you-go workers' compensation. This type of workers' comp policy has a low upfront premium, and lets you make payments based on your actual payroll instead of estimated payroll. It's useful for businesses that hire seasonal help or have fluctuating numbers of employees.

A ghost policy is another cheap option, though it's only permitted in certain circumstances. A ghost policy is a workers' comp policy in name only. It provides no protection, but can fulfill contractual requirements for a workers' comp certificate at a reduced price.

Finally, a documented safety program can help lower workers' comp costs. A safer workplace means fewer accidents, which helps keep your premium low.

Florida's workers' compensation system protects both employees and employers. In the event of a workplace injury, the employee receives reimbursement for their medical treatment and time lost from work, while the employer is protected from lengthy and expensive litigation.

Most policies include employer's liability insurance, which covers legal expenses if an employee blames their employer for an injury. However, the exclusive remedy provision in most workers' comp policies prohibits an employee from suing their employer once they accept workers' comp benefits.

The state of Florida requires coverage to include workers' compensation benefits for:

• Medical care
• Temporary total disability
• Temporary partial disability
• Impairment income benefits
• Permanent total disability
• Fatal incidents

In most cases, the benefits are two-thirds of the employee's average weekly wage before the injury.

The Florida Department of Financial Services regulates workers’ compensation insurance. Florida employers and workers can find resources for all aspects of workers' compensation claims and laws through the agency’s Division of Workers' Compensation.

Florida employers that operate without the required workers’ comp coverage risk civil penalties.

Usually, that means that the business would be subject to a stop-work order that requires all operations to stop until it complies with the law and pays a penalty. The fee is typically equal to twice the insurance premium the employer would have paid for the preceding one- or two-year period.

If the employer does not comply with a stop-work order, the action could result in criminal charges. You could also be subject to a stop-work order if:

• Payroll is understated or concealed
• Employees’ duties are misrepresented or concealed
• There is any attempt to avoid paying workers’ compensation premiums

If an employee dies as a result of a work-related accident within one year of the date of the accident or within five years of continuous disability, death benefits could be owed to the employee’s survivors. The family of the deceased employee could be entitled to:

• Up to $7,500 to cover funeral expenses
• Education benefits to a surviving spouse
• Up to $150,000 in compensation benefits to dependents (paid at up to 66.67% of the decedent’s weekly wage)

In some cases, an employee might try to negotiate for a workers’ comp settlement.

If an injured employee decides to escalate a claim to a larger settlement negotiation, the employer should remain involved in that discussion to reduce liability in a lawsuit if one arises.

Before an insurance company will settle a claim, it will ask the employee and their attorney to calculate the total amount of anticipated related expenses. However, the insurance company won’t simply pay a settlement based on all of these calculations.

The insurance company and the employee’s attorney will often spend some time negotiating before reaching a settlement that is agreeable to all parties. If they can’t reach an agreement, there could be a hearing or lawsuit.

In Florida, settlements are voluntary; neither party can be forced to sign. The settlement is received as a single lump-sum payment.

Statutes of limitations are designed to protect against claims that are filed too long after an injury has occurred. Florida laws state that an employee cannot claim benefits, receive medical treatment, or sue for lost wages if the period is more than two years from the date of injury.

There are exceptions to the two-year statute of limitations:

• If the injured worker is a minor
• If the injured worker is mentally incompetent
• If the worker was misled by the employer about coverage entitlement
• If the insurance carrier did not properly inform the worker of their rights
• There is no statute of limitations in Florida for care associated with medical prosthetic devices

If you are ready to buy a workers' compensation policy, start a free application with Insureon to compare quotes from top-rated insurance carriers. A licensed insurance agent will help answer your questions and explain your coverage options. Once you find the right policy, you can usually begin coverage and get your certificate of insurance in less than 24 hours.