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Workers' compensation insurance in Florida is required for a business with four or more employees. Construction companies must have coverage for every employee.
The average rate for workers’ comp in Florida is $2.79 per $100 of payroll. However, this is just an average, and your rate can vary.
You can learn more about Florida's workers’ comp rates here.
Saving money on workers’ compensation is possible, but Florida business owners must take some specific steps. These include the following:
Be vigilant about claims to reduce your Experience Modification Rate (Ex-Mod). Remember that your Ex-Mod is compared to similar businesses.
While workers’ comp rates vary from state to state, as well as from industry to industry and even business to business, the process is similar overall.
When you purchase a policy, you’ll provide an estimated payroll amount for the year. This will form the basis of your premium. At the end of your term (most often 12 months), the insurance company will audit your payroll and determine the exact amount. If your actual payroll is lower than projected, you receive a refund. If it’s more than projected, you’ll owe more money.
In terms of employee coverage, workers’ compensation usually pays for medical expenses, lost wages, and legal expenses if the employee files a lawsuit related to the accident or injury.
Ongoing medical bills related to the injury/accident
Temporary disability payments
Permanent disability payments
Workers' comp coverage also protects employers from legal action. This means that if an employee sues your business because of a workplace injury, the insurance will cover the legal costs of the case.
Getting workers’ comp insurance in Florida is usually relatively simple. A business owner can purchase insurance from any insurance agent operating within the state.
Note that not all agents in Florida offer workers’ comp, though, and it’s important to compare potential policies before deciding. Kickstand Insurance offers workers’ comp throughout Florida.
Employers that fail to purchase workers’ comp insurance in Florida face significant penalties. The most common outcome is that the state will issue a stop-work order, which requires the company to halt all operations until it complies with the law.
The business will also be fined and required to pay twice the amount it would have paid in annual premiums during the preceding two-year period. Criminal charges are also possible depending on the situation.
Florida requires that insurance companies provide substantial death benefits in the case that an employee dies as the result of a work-related accident within a year of the accident date, or within five years while receiving continuous disability payments.
Depending on the situation, the employee’s family could receive up to $7,500 for funeral expenses, up to $150,000 in compensation (up to 66.67% of the employee’s weekly earnings), and education benefits for the surviving spouse (if applicable).
An employee who has been injured on the job may attempt to negotiate a larger workers’ comp settlement. This process is handled by the insurance company, its lawyers, and the employee and their lawyer.
However, the employer should remain engaged during this process. The insurance company will ask the employee and their lawyer to provide a calculation of the total anticipated amount of expenses and then will try to negotiate and find an amount that satisfies everyone involved. If a settlement cannot be reached, a court hearing is usually the next step.
While it’s important to provide Florida workers with protection, it’s also important to protect Florida businesses against claims filed too long after the incident. In most cases, the statute of limitations is two years from the date of the injury.
However, that does not apply if the injured employee is a minor or not mentally competent, if they were misled by the employer about coverage, or if the insurance company did not inform the worker of their rights.
Note that Florida has no statute of limitations regarding medical prosthetic device-related care. The Division of Workers’ Compensation is responsible for regulating workers’ compensation claims in the state.
In Florida, workers' compensation insurance is not typically required for 1099 employees or independent contractors. However, if a 1099 worker is injured on the job and does not have their own insurance, you could be responsible for their medical expenses and lost wages.
Additionally, if state or federal authorities determine that your 1099 workers are functioning more like employees than independent contractors, you may be required to reclassify them as employees, which would mean providing them with workers’ comp coverage.
To protect your business, always require proof of insurance from your contractors.
Start by filling out a short online form about your business. We’ll use that info to get you an estimated quote. Then, one of our experienced agents will contact you to review the quote and make sure you are getting the absolutely lowest rate possible for your business. Once the quote is finalized, you’re ready to buy the policy - often with coverage starting that day!
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