The state of Florida provides worker compensation for most employees who sustain injuries while on the job. Having workers’ compensation insurance is a legal requirement for most businesses. There may be legal repercussions for failing to provide workers’ compensation insurance, including fines. However, workers’ compensation may not be required by all employers; there might be an exemption. Read further to learn more about the state of Florida workers compensation exemption: how to go for the renewal and that of sole proprietors. Let’s dive in!
Overview of Florida Workers Compensation
Workers’ compensation benefits may be available to Floridians who sustain injuries or illnesses on the job. Regardless of how many employees they have, all construction-related businesses must obtain insurance. The only catch is if they qualify for an owner exemption under the law. Businesses with four or more non-construction employees in Florida must have workers’ compensation insurance. So, if you work in the state of Florida and break your ankle or get sick, workers’ compensation will likely cover your medical bills and lost wages, regardless of what industry you’re in. Having said that, where you stand at work is significant. Workers’ compensation benefits require that an individual be considered an employee rather than a contractor.
In order to qualify for workers’ compensation in Florida, you must have sustained an injury or sickness as a direct result of your efforts or responsibilities in the course of your employment. Workers typically do not experience complicated injuries at work. If you hurt yourself while operating heavy machinery at work or if you fall off a ladder at a building site, you can be sure that the two are related. When dealing with work-related illnesses, it may be necessary to take a broader perspective. However, occupational illnesses affect a large number of Americans. Some occupations, such as those involving contact with chemicals, such as those in the chemical production industry, might expose workers to irritants that can lead to illness. Workplace accidents and chronic exposure are two possible causes.
Thus, if you get sick from work-related activities in Florida, your employer’s workers’ compensation insurance will pay for your medical care.
What Is the Purpose of Florida Workers Compensation?
Employees who suffer from illness or injury on the job are eligible to receive benefits from your workers’ compensation policy. This aid can be used to cover the costs of:
- Reduced pay
- The Cost of Healthcare
- The price of a funeral
- Legal fees
Requirements for Workers’ Compensation in Florida
Workers’ compensation insurance is mandatory in the state of Florida for the following types of businesses:
- Companies in the construction industry employ at least one person
- Businesses outside of the construction industry employing at least four people full- and/or part-time
- Workers in municipal or state governments
- Farms and other agricultural companies with a year-round staff of at least six people
- Employees who sustain injuries on the job are safeguarded by workers’ compensation legislation. When an employee suffers a work-related injury or sickness, their employer is obligated to pay for workers’ compensation benefits.
How Does Workers’ Compensation Work in Florida?
Workers’ compensation insurance can assist in paying for benefits like medical bills if an employee suffers an injury or illness on the job. Treatments like physical therapy may be required on a long-term basis to address issues like repetitive stress injuries.
Workers who suffer an injury or illness on the job may be eligible for wage replacement benefits while they are out of commission recovering. A persistent disability that prevents the employee from returning to work may also be covered. If an employee is killed on the job, the policy will also contribute to burial expenses.
Who Needs Workers’ Compensation in Florida?
According to Florida law, any company with four or more employees must carry workers’ compensation insurance. However, the type of coverage you need depends on your business, the number of workers, and the type of work they do.
Employers in the following sectors often find it necessary to obtain a workers’ compensation policy:
- Building firms employing at least one person. Keep in mind that members of an LLC or corporate officers are also considered employees.
- Businesses in non-construction industries employ at least four people. Officers and members of corporations and limited liability companies are also business owners.
- Businesses in the agricultural sector employ six people or more. If 12 seasonal workers are employed for more than 30 days but less than 45 days in a calendar year, then coverage is required.
- Companies based outside of Florida that employ Floridians must have a workers’ compensation policy from a provider approved by the state.
- Independent or self-employed contractors in the state must ensure they have workers’ compensation coverage before beginning any job.
For further information on what is required in Florida, contact the state’s Division of Workers’ Compensation, which is part of the Department of Financial Services.
Read Also: Workers Compensation Insurance Florida: The Ultimate Guide
Florida Workers Compensation Exemption
The State of Florida workers compensation exemption is optional for a select few businesses and workers. By submitting a certificate of election to be exempt, sole proprietorships and partnerships can avoid paying for workers’ compensation insurance. However, by submitting an election of coverage form to The Division of Workers’ Compensation, these companies can still purchase a policy.
Florida workers compensation exemption include:
- The Florida Department of State’s Division of Corporations is responsible for the registration of all corporations in the state. An exemption from workers’ compensation must be requested by a company officer.
- Florida law requires every limited liability company (LLC) operating outside of the construction business to file an application with the state’s Division of Corporations. The applicant must hold at least 10% of the LLC, and the number of members may not exceed 10.
However, consult a workers’ compensation attorney if you have questions about whether or not you are entitled to workers’ compensation payments from your employer.
Construction Companies Distinct Exemption Qualifying Requirements
The Florida Department of State’s Division of Corporations is the place for construction-related corporations and limited liability companies to get officially set up.
- A corporate officer or member of an LLC with at least 10% ownership is required to submit an application.
- There can be no more than three exempt officials or members.
- The cost to apply is $50.
Florida Workers Compensation Exemption Renewal
When calculating workers’ compensation coverage and premiums in Florida, business owners and members of Limited Liability Companies (LLCs) are included. However, owners can avoid this mandate by filing a workers compensation exemption on the Division of Workers Compensation website in Florida. In Florida, sole proprietorships and partnerships cannot apply for workers compensation exemption; however, limited liability companies (LLCs) and corporations frequently exclude members or officers from workers’ compensation coverage, substantially lowering the annual cost.
There are a few essentials to remember when submitting your initial workers compensation exemption application in Florida. The most important thing to keep in mind is that if you are an official of a corporation or an owner of an LLC and are granted an exemption, you will not be eligible for workers’ compensation payments if you are injured on the job. Also, remember that in Florida your company’s core industry will determine how the workers compensation exemption process is governed. It’s segmented by construction firms and those that don’t specialize in building things.
Workers compensation renewal procedure is the third thing to put into consideration in Florida. Each owner or officer must renew their exemption every two years. The payroll amounts of the owner will be included in the audit process by your workers’ compensation carrier, leading to an increase in your workers’ compensation premium if the owner exemption is not renewed or if there is a gap between the expiration and renewal date. Therefore, it is crucial that officials and members of LLCs in Florida maintain their workers compensation exemption status at all times.
The Florida Division of Workers Compensation also has a webpage where business owners can easily do their exemption renewal.
Florida Workers Compensation Exemption Sole Proprietors
You may not have thought about getting Workers Compensation insurance as a sole proprietor in Florida. Workers’ Compensation insurance is important for Florida sole proprietors who want to keep their businesses and themselves safe from legal and financial problems.
Workers’ compensation insurance is mandatory in Florida, but only for sole proprietors who work in construction companies. Sole proprietors, like other business owners, should protect themselves. In the event of an on-the-job injury, a sole proprietor is shielded from personal financial responsibility by workers’ compensation insurance. Due to the high expense of insurance, it is reasonable that the sole proprietor may choose to go without it. The sole proprietor in Florida who is concerned about protecting themselves and their firms from liability should consult a knowledgeable broker.
However, sole proprietors in Florida can opt for workers compensation exemption. However, by submitting an election of coverage form to The Division of Workers’ Compensation, these companies can still purchase a policy.
Why Should a Florida Sole Proprietor Have Workers Compensation Coverage?
Even though they are not required to, sole proprietors in Florida might greatly benefit greatly by carrying Workers’ Compensation insurance. If you don’t think you need Workers’ Compensation insurance since the likelihood of getting hurt on the job is low, you should reconsider.
There are a wide variety of ways in which Florida’s sole entrepreneurs might profit from carrying Workers’ Compensation insurance. There is no legal distinction between the firm’s owner and the company itself under this corporate structure. For a sole proprietor, this means bearing the financial burden of any injuries sustained in an accident.
You might think you don’t need to worry about workplace safety if you’re a sole proprietor and a lone employee. You know how to take care of yourself if you are hurt on the job, right? Wrong. If you’re a sole owner and you get hurt on the job and don’t have Workers’ Compensation insurance, you’re on your own. Protect yourself from financial ruin in the event of an accident with help from a knowledgeable Florida Workers’ Compensation insurance broker.
Can Employers Qualify for a Workers Compensation Exemption in Florida?
It’s possible that some businesses won’t have to pay for workers’ comp insurance. For instance, a construction company officer may seek exempt status. Additionally, a construction Limited Liability Company (LLC) owner in Florida with at least a 10% stake might request for workers compensation exemption.
Workers compensation exemption may also be sought by an officer of a Limited Liability Company or corporation that does not engage in building. All the conditions for workers compensation exemption in Florida must be met by the applicants.
Can I Sue My Employer if It Does Not Have Workers’ Compensation Insurance Coverage?
A worker who sustains an accident on the job typically has no legal recourse against their employer. A worker may be able to sue an employer for damages if the company does not have mandatory workers’ compensation insurance. Additional compensation may be available under personal injury statutes. Lost wages are not fully compensated by workers’ compensation. Wage benefits only account for around 66 2/3 of the employee’s typical weekly income.
However, if an employee files a personal injury claim, they may be able to recover lost wages from both the past and the future. A worker, however, may be eligible for additional forms of payment as well.
Also, compensation for an employee’s pain and suffering is not covered by workers’ compensation. In a personal injury action against an employer, these losses could be recouped.
Compensation for an employee could be given for:
- Physical pain
- Emotional distress
- Diminished quality of life
- Mental anguish
- Loss of quality of life
Permanent disabilities, disfigurement, and disability may also result in increased compensation if you decide to file a claim. The scope of compensation for such losses is constrained by workers’ compensation laws.
Florida Workers’ Compensation Laws
Labor Insurance in Florida’s Division of Workers’ Compensation works to guarantee that companies have money set aside for workers’ comp. They can ensure that businesses, doctors, and insurers all comply with state regulations regarding workers’ compensation in Florida. Check them out:
- Obtaining Workers’ Compensation Insurance in Florida
- Employment Benefits During Illness or Injury
- Attorney fees for workers’ compensation cases
How Much Does Workers’ Compensation Cost in Florida?
It is contingent upon the nature of your firm and the quantity of your workforce. Workers’ compensation costs are proportional to the size of an organization’s payroll. Your fee will also vary depending on the sector you operate in. Workers’ compensation insurance costs significantly less for a technology firm than it would for a construction firm with the same number of employees.
Regardless, the typical price of workers’ compensation insurance in Florida is $1.66 per $100 of payroll. Get a quick price quote right now to see what your potential costs would be.
What are the Workers’ Compensation Insurance Limits in Florida?
The good news is that the state of Florida determines coverage limits for everyone. No thought or decision-making is required on your part when requesting a workers’ comp estimate; your rate will be determined automatically based on payroll and other factors.
Theoretically, your insurance company could pay any amount you ask. Consider the case of a worker who suffers a permanent disability as a result of an accident on the job. If that happens, the worker may receive lifetime disability payments from their insurance provider. Yes, this does mean that all companies providing workers’ compensation insurance offer the same policy. Anywhere you travel, you will have the same level of protection.
If I Get Hurt at Work, What Should I Do?
You must inform your supervisor of the injury within 30 days. A working injury or illness should prompt prompt communication with your employer. If you have an injury at work, your employer has seven days to notify its workers’ compensation insurer. The insurance provider for workers’ compensation should get back to you with details as soon as possible after it’s been notified of your claim.
If you get hurt on the job and need medical attention, workers’ compensation will pay for it. Your company should supply a list of pre-screened doctors and hospitals. You are entitled to lost time payments if you are injured and unable to work. To file a claim for workers’ compensation benefits, legal representation is not required. You should consult an attorney before deciding whether or not to file a workers’ compensation claim.
What Happens if I Don’t Get Workers’ Comp in Florida?
A felony prosecution awaits you (and the potential closure of your enterprise). Employers who don’t provide workers’ compensation face the possibility of being charged with a felony of the second degree. This could lead to a cease-and-desist order being issued by the Florida Department of Workers’ Compensation.
You should never assume that you can disregard a stop order. The risk doesn’t seem worth taking. Get workers’ compensation insurance while you’re at it.
#1. Legal action may be taken against you
Employees who suffer injuries and are denied workers’ compensation may sue you for the money they would have received. It’s possible that you’ll have to pay for everything from medical bills and rehabilitation to lost wages and legal fees. In most cases, the cost of settling a workers’ compensation case exceeds the cost of purchasing a workers’ compensation policy.
#2. You will pay fines
Take precautions. The cost may quickly add up. To start, the state may demand a sizable fine from you. A fine of up to two times the amount of workers’ compensation premiums you would have had to pay could be imposed.
Remember that this is in addition to any additional penalties the state may impose. Let’s say you’re doing business in Florida and the state determines that you misclassified some of your workers as independent contractors in order to avoid paying workers’ compensation for them. The maximum fine per misrepresented worker is $5,000. (Even if you go without workers’ comp for a single day, the state can still seek punitive penalties that could amount to tens of thousands of dollars.)
#3. Your property can become subject to a lien
A lien will be put on any real or personal property you own until the fines are paid in full. You will not be able to avoid being found out because a public notice for the lien will be filed in all of the counties where your property is listed.
Getting workers’ compensation insurance is a need. And if you do, prospective insurers will learn about the coverage gap you have. Then they will either charge you more or refuse to insure you (perhaps forcing you to receive coverage through a costly state fund).
Final Thoughts
Let’s say an employee suffers a health problem that was brought on by their job. Workers’ compensation insurance would then kick in to make sure they have the resources they need to get better and return to work. Benefits for lost wages (and death benefits) will also be provided. Why not get yours today?
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