Does Your Small Business in Florida Need Workers' Compensation Insurance?

The requirements for having workers' compensation for your small business in Florida depend on the type of business you operate. According to the Florida Department of Financial Services, if you are in the construction industry and you have one or more full or part-time employees, including sole proprietors and partners, you must have workers' compensation insurance. In the agricultural industry, you must have workers' compensation insurance if you have five or more regular employees and/or 12 or more seasonal workers who work more than 30 days. For other types of businesses, you must have workers' compensation insurance if you have four or more full or part-time employees.

Workers' compensation insurance covers the medical and rehabilitation costs and some wages of employees who are injured on the job or who become ill due to exposure in the workplace. As explained by the National Federation of Independent Business, the cost of workers' compensation is determined by the state workers' compensation board. The cost of the insurance is determined by applying a risk classification percentage to the total payroll. The risk classification percentage is based on the occupation, and the frequency and severity of injuries at work. Your workers' compensation premiums can vary depending on your safety history and other factors.

As pointed out by Edward J. Priz in an article for Entrepreneur, you may have workers' compensation liability for contractors or subcontractors. If they do not have their own workers' compensation and get hurt while working on your premises, they could be eligible for workers' compensation benefits from your business.

In Florida, contractors in the construction industry must get proof of workers' compensation coverage or a Certificate of Election to be Exempt from all their subcontractors. If the subcontractor is not covered or exempt, the contractor will be responsible for paying workers' compensation benefits to the subcontractor and its employees.

If you use an agency to hire temporary help for your business, the temporary agency, or employee leasing company as it is referred to by the Florida Department of Financial Services, provides workers' compensation coverage for the employees listed with that company.

You can contract a workers' compensation insurance policy with an insurance agent licensed in Florida. The Florida Department of Financial Services provides links for finding an insurance agent and for verifying licensure.

As indicated by Drew Roberts, CPCU, ARM, in FloridaWC.com, in order to be covered by workers' compensation insurance, the injury must be an accident, it must arise out of work performed, and it must take place during the course and scope of employment. If one of your employees suffers a compensable injury, you should report it to the insurance company so they can file a claim.

Sources:
Division of Workers' Compensation '" Florida Department of Financial Services
Edward J. Priz, "Workers' Compensation 101" - Entrepreneur
Frequently Asked Questions '" Division of Workers' Compensation '" Florida Department of Financial Services
Workers' Compensation Insurance: What It Is and Why Your Small Business Needs It '" National Federation of Independent Business
Drew Roberts, CPCU, ARM, "Workers' Compensation Insurance" '" FloridaWC.com