Workers Compensation Insurance - Florida
How Does Workman’s Comp Work in Florida?
Workers’ compensation insurance covers workplace injuries sustained by employees on the job. It provides them with healthcare benefits, lost wages, educational retraining, and disability pay, when applicable. For example, if an employee slips and falls on a wet floor inside the business property and gets a back injury, they are entitled to compensation for doctor appointments, medications, and two-thirds the amount of money they couldn’t earn because of the injury. If the employers have workers’ compensation, the insurance company pays for these expenses.
Florida Insure is dedicated to helping small businesses get the protection they need to succeed. Workers compensation is one of the small business insurance solutions we provide for our clients in Florida to help them focus on their business goals.
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Is It Required to Have Workers’ Compensation Insurance in Florida?
Workers’ compensation insurance is mandatory for most businesses, according to Florida Laws. For employers in the construction industry who are corporate officers or LLC members, it’s legally required to carry workers’ comp if they employ one or more workers. Non-construction employers corporate officers or LLC members need to carry coverage if they have four or more employees. The Florida workers’ compensation laws and requirements differ between industries. It’s important to check the specific regulations for your business to ensure you comply with the law.
Who Pays for the Employee’s Health Insurance on Florida Workers’ Compensation Insurance?
Your employer continues to pay for your health insurance premium if you were on a plan before the accident, and you continue to pay your portion, if any. Workers’ compensation pays for medical expenses related to the specific incident that happened in the workplace but not the employer’s general health insurance.
What Does Workers’ Compensation Insurance Cover?
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Lost Wages: Covers part of the wage that the employee can’t get because of their injury. The amount they receive and duration of payment depends on the severity and nature of the disability.
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Death benefits: provide financial support to dependents, and cover funeral costs, if an employees die because of a workplace injury.
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Medical Expenses: Workers comp covers necessary medical costs, like doctor visits, hospital stays, surgeries, medications, and rehabilitation services.
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Ongoing Care: Florida workers’ compensation coverage also includes expenses for ongoing medical treatment, like physical therapy, needed to recover from the injury.
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Disability Benefits: Workers comp coverage offers compensation for disabilities resulting from a workplace injury.
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Get a QuoteWhat Does Workers’ Comp Insurance Not Cover in Florida?
- If the injured workers are independent contractors.
- Self-inflicted injuries.
- Injuries sustained while under the influence.
- Injuries resulting from criminal activities.
- Pre-existing conditions.
- Injuries that happened due to safety rules violation.
- Injuries during voluntary recreational activities.
- Non-work-related injuries.
- Mental or nervous injuries.
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Who Is Exempt from Workers Compensation Insurance in Florida?
While workers’ comp is mandatory, Some Florida state employers are exempt under some circumstances.
- Construction workers with less than one employee are exempt.
- Non-construction employees with three employees or less are also automatically exempt.
- Agricultural businesses with 5 or fewer workers, and 11 or fewer seasonal employees are not required to carry workers’ compensation coverage.
Who Can File for Workers Comp Exemption in Florida?
- Corporate officers or LLC members in the construction industry: should have at least 10% ownership of the company. Only a maximum of 3 members are allowed to get exempt. Each exemption requires a $50 fee and is valid for two years.
- Corporate officers in the non-construction industry: can be exempted for free. There’s no limit to how many officers can get exempted, and the exemption period is valid until revoked or rescinded.
- Sole proprietors and partners in non-construction industries: are automatically exempt but can get coverage if desired.
How Much Does Workers’ Comp Cost in Florida?
The cost of Florida workers’ compensation insurance varies by industry classification, payroll size, and the employer’s claims history. The National Council on Compensation Insurance (NCCI) sets base rates per $100 payroll for each job classification.
For example, in 2024, clerical workers are $0.13 per $100 of payroll, and roofing workers are higher due to more risk. Recent changes have resulted in a 15.1% decrease in workers comp rates for 2024 effective 1/1/2024.
Additionally, employers can also get a 2% discount for safety programs and a 5% discount for drug-free workplace programs. Although base rates are standard, the final premium can vary based on the employer’s situation, claims history, and additional credits or debits applied by the insurance provider.
How to File Workers Comp Exemption in Florida
- Make sure you are eligible for workers’ compensation exemption.
- Complete the online workers’ compensation coverage and compliance tutorial. It’s mandatory since January 2023 and is available on the Florida Division of Workers’ Compensation website.
- Access the “Notice of Election to be Exempt” application through the Florida Division of Workers’ Compensation’s online system. You’ll be prompted to provide personal and business information, including a valid driver’s license number.
- If you work in the construction industry, you will be asked to pay a fee of $50. You can pay via a credit card or an electronic check.
- The Division has 30 days to review your application. If approved, you’ll receive a Certificate of Election to be Exempt via email. We recommend printing and retaining the certificate for your records.
What Are the Penalties for Not Having Workers’ Compensation Insurance in Florida?
According to Florida laws, workers’ compensation coverage is mandatory. The Florida Department of Financial Services may send state investigators can perform job site inspections to make sure you carry coverage. Florida small business owners who don’t comply face severe penalties.
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Financial penalties: may go up to twice the amount that would have been paid during the non-compliant period, up to two years. Additional fines may reach $5000 for misclassifying employees as independent contractors.
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Criminal charges: Certain violations, like falsifying information to reduce premiums or violating a SWO, can result in criminal prosecution, ranging from misdemeanors to felonies.
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A Stop-Work Order (SWO): Is issued for businesses that operate without coverage. They are forced to cease operations until they prove compliance and pay all penalties.
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Liability: If an employee is injured, they may file civil lawsuits leading to significant financial liabilities.
What Is the Maximum Workers’ Compensation Rate in Florida?
For work-related injuries and illnesses after 1/1/2024, the max weekly comp rate is $1260. It’s an increase from last year’s maximum of $1197. This increase in Florida workers’ comp rates in 2024 reflects the state’s economy and wage growth.
Section 440.12(2) of the 2023 Florida Statutes states that for injuries after 8/1/79, the weekly comp rate is 100% of the statewide average weekly wage rounded to the nearest dollar. The Department of Economic Opportunity determines this average wage based on the 4 quarters ending 6/30 of each year, and it applies to injuries in the following calendar year.
How to Calculate Workers’ Compensation Insurance Rates
To calculate workman’s comp in Florida, follow these steps:
- The first step is to identify your classification code. Each job has a code assigned by the National Council on Compensation Insurance (NCCI) that reflects the risk level of that job. For example, a fast food restaurant’s code is 9083.
- Then, calculate the total annual payroll for each classification.
- For each classification, divide the annual payroll by 100 and multiply it by the rate that corresponds with the classification code.
- Apply Experience Modification Rate (EMR) by adjusting the manual premium based on your company’s claims history. An EMR under 1.0 means fewer claims than average and reduces premiums, above 1.0 increases premiums.
- Factor in additional adjustments, like credits or debits for safety programs, drug-free workplaces, and other factors that may affect the final premium.
For a more exact estimate use the Florida Department of Financial Services’ Estimated workers’ compensation insurance cost calculator. And consult with a licensed agent to make sure all factors are considered.
How to Get Cheap Workers’ Compensation Insurance in Florida
- Compare multiple quotes to get the best deal. Many Florida workman’s compensation insurance agencies provide online quotes.
- Implement programs for safety, not only will they keep employees safe, but they can also get you a discount from some insurers.
- Participate in a state-certified drug-free workplace program to get a premium discount. It shows you’re committed to reducing workplace incidents.
- Ensure all employees are classified correctly for their roles, as misclassifications can lead to higher premiums.
- Bundle workers’ compensation with another business insurance coverage. Many insurance providers offer discounts for bundling.
- Work with an experienced insurance agent. Our agents are knowledgeable about workers’ compensation insurance in the state of Florida, they can help you get a good price without sacrificing protection.
How to Get Workers Compensation Insurance in Florida
As a small business owner, you have two options when if you want to purchase coverage. You could:
- Buy from a private insurance company. We can help you get the best workers’ compensation insurance from some of the top insurance companies in Florida.
- If denied coverage from an insurance company, you can get workers comp from the state fund.
What Is Your Florida Workers’ Compensation Phone Number?
Need the best FL workers comp insurance? Call us at (844) 435-2467 to get started!
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How to File a Workers Comp Claim in Florida
- Document the incident as soon as you have all the details from the injured worker.
- Direct the injured employee to a medical provider. The provider should be authorized by your workers’ compensation insurance company, as required by Florida law.
- File the first report of illness or injury (DWC-1) within seven days of getting informed about the accident.
- Inform the injured workers about their rights and responsibilities under Florida’s workers’ compensation system.
- Stay in communication with the insurance company, as well as the injured employee.
- Keep detailed records of the incident, communications, and any related documentation.
- Await settlement from the insurance company.
What Are the Limitations for Workers’ Compensation Claims?
The limitations for workers’ compensation coverage are related to the timeframe. The injured employee should file a petition for benefits within a maximum of two years from the date they knew that the injury is serious and work-related. After two years, you can only file a second claim within one year from the date of the last payment of compensation or the last provision of medical treatment. These limitations are subject to tolls in some cases. Speak with an insurance agent to learn more.
Florida Workers Compensation Insurance FAQs
Although a subcontractor needs workers’ compensation insurance in Florida, it’s their responsibility to get coverage for themselves. That being said, a contractor should make sure any subcontractors they hire are covered.
Independent contractors in the construction business need workers’ compensation insurance, as well as subcontractors, and full-time, and part-time employees. On the other hand, non-construction independent contractors aren’t required to carry workers’ compensation.
Any employer with four or more employees, including corporate officers or LLC business owners, is required to carry workers’ compensation coverage. If it’s a construction business, they need to buy coverage for as little as one employee.
For FL WC coverage verification, you need to use the online tool provided by the state of Florida. You start by searching for the business name or FEIN. If the business has workers’ compensation, it will show up with its policy number. You will get no results if the business isn’t covered.
Workers’ comp pays two-thirds or 66% of the employee’s wage if a doctor says they’re unfit to work because of a work-related injury or illness. The wage amount is subject to a statewide maximum reimbursement amount.
1- Make sure you are eligible for workers’ compensation exemption.
2- Complete the online workers’ compensation coverage and compliance tutorial.
3- Access the “Notice of Election to be Exempt” application through the Florida Division of Workers’ Compensation’s online system.
4- If you work in the construction industry, you will be asked to pay a fee of $50. You can pay via a credit card or an electronic check.
5- The Division has 30 days to review your application. If approved, you’ll receive a Certificate of Election to be Exempt via email. We recommend printing and retaining the Florida workers comp exemption certificate for your records.
No, as a sole proprietor, you don’t need to file for exemption, as you’re already excluded by your insurance company because you’re not considered an employee. However, you may choose to get coverage if you want.
As of January 2025, the maximum workers’ comp rate in Florida is $1295, which is an increase from the 2024 rate by $35.
Death benefits are a type of workers’ compensation that extends to dependents of the deceased workers, that are related by blood or marriage. This includes the spouse, parents, siblings, children, grandparents, and grandchildren.
Yes, governmental and private employers can get self-insured if they can prove that they have the financial capacity to handle all workers’ comp claims.
Yes, both full-time and part-time employees require the employer to carry workers’ compensation.
Yes, any LLC employers or corporate officers need to carry workers’ compensation if they have more than four or more employees.
Florida dictates that after an injury is reported, the employee starts getting compensation within 21 days.
For employees in the construction business, the application costs $50. For other sectors, the application is free.
For most employers, workers comp is mandatory and not carrying coverage can subject you to expensive penalties, including a fine up to $5000, a stop-work order, and other legal issues.
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