As a Florida business owner looking to stay on the right side of the law as well as protect your business from legal suits, workers’ compensation is something you should definitely strive to understand. Workers’ compensation is no-fault business insurance that covers employees for work-related injuries or illnesses.
It is taken by the employer for the employee. Unfortunately, workers comp and its laws can seem complex to most employers.
So, here is a look at the rules and regulations for FL workers compensation that you need to know as a business owner:
Types of Businesses That Need Workers’ Comp
It is mandatory for all businesses in Florida with four or more employees to have workers’ compensation insurance; regardless of if they’re working part or full-time. However, there are certain instances when this rule can be exempted, namely:
- Construction companies must carry workers’ comp even if they have just one employee.
- Businesses in agriculture with six or more full-time workers or 12 or more part-time workers employed for more than 30 days.
- Sole proprietorships and partnerships are typically not required to carry workers’ compensation.
What About Self-Employed People?
Whether or not self-employed people like independent contractors and sole proprietors must carry workers’ compensation depends on the nature of the work. If you are in the construction industry, for instance, Florida workers’ compensation laws still require you to have coverage.
That said, it is always best to get workers’ comp even if you are not required to by law, as the coverage can help you recover not just medical costs but other related expenses.
FL Workers Compensation Benefits
Besides safeguarding you from insurance-related employee lawsuits, workers’ comp provides various benefits to your workers in case of a workplace-related injury or sickness. These benefits help settle expenses such as:
- Medical costs
- Lost wages
- Funeral costs
- Legal fees
What Happens When You Break the Rules?
Running a business without having workers’ compensation insurance coverage can see you face dire consequences. You might be served with a stop-work order, which essentially means you must cease all business operations until you adhere to the law and pay a stipulated fine.
The penalty is often twice the amount you would have used on workers’ compensation insurance premiums for the last two years. Now, failure to comply with a stop-work order can see you to criminal charges.
You can also be slapped with a stop-work order if you underreport or hide your payroll. Or if you misreport your workers’ roles to avoid paying workers’ comp insurance in full or at all.
Get the Best Workers’ Comp to Protect Your Employees, Business & Peace of Mind
As you can see, worker’s compensation insurance is a vital safety net for any business owner in Florida with more than four employees. Whether it’s a slip and fall, repetitive strain injury, or exposure to harmful chemicals, workplace accidents can have serious physical, emotional, and financial consequences for your employees.
That’s why it’s essential to understand the legal technicalities of worker’s compensation insurance.You will have deeper peace of mind knowing no employee lawsuit will knock you off your feet.
So, make sure you invest in FL workers compensation for your business.
