Workers Compensation Insurance in Sunrise, FL: Who Needs It?

Most businesses in Sunrise, FL need workers compensation insurance once they have four or more employees, and construction businesses generally need it with one or more employees. Workers compensation pays for an injured employee’s medical care and a portion of lost wages, and it generally protects the employer from being sued over the injury.

What Does Workers Compensation Cover?

• Medical care for a work-related injury or illness.
• Lost wages, a portion of an employee’s income while they recover.
• Disability benefits for temporary or permanent impairment.
• Death benefits for dependents in a fatal workplace accident.

Most policies also include employer’s liability coverage, which helps if an employer is sued in connection with a workplace injury in situations workers compensation does not fully resolve.

Who Is Required to Carry Workers Comp in Florida?

Florida’s rules depend on your industry. Construction businesses generally must carry coverage with one or more employees, including part-time workers. Most non-construction businesses must carry it with four or more employees. Agricultural employers have separate thresholds. Corporate officers in some situations may apply for an exemption for themselves, but an exemption never covers employees.

What Happens If a Sunrise Business Goes Without Required Coverage?

Florida can issue stop-work orders and assess penalties against businesses that are required to carry workers compensation and do not. The business can also be personally responsible for an injured employee’s medical bills and lost wages. Read more in what happens if your business does not carry workers comp in Florida.

How Is the Cost of Workers Comp Calculated?

Premiums are based mainly on your payroll and the classification codes for the type of work your employees do. Office workers cost far less to insure than roofers or landscapers. Your experience modification factor, which reflects your claims history compared with similar businesses, can raise or lower your premium. Because payroll changes during the year, most policies are audited at the end of the term, so keeping accurate payroll records matters.

How Can You Keep Workers Comp Costs Down?

• Classify employees correctly so you are not paying rates for riskier work than your team actually does.
• Build a safety program with training and written procedures.
• Report injuries quickly, since early reporting helps control claim costs.
• Get certificates from subcontractors so uninsured subs are not added to your premium at audit.
• Shop the policy with an independent broker at renewal.

What Should an Employer Do When an Employee Is Injured?

Make sure the employee gets appropriate medical care first. Then report the injury to your workers compensation carrier promptly, keep a written record of what happened, and follow the carrier’s instructions on authorized medical providers. Quick, accurate reporting helps the employee get care faster and helps keep the claim from becoming more expensive than it needs to be.

Can You Get Workers Comp Through a Broker Instead of the State?

Yes. Most Florida businesses buy workers compensation from private carriers through an agent or broker. Businesses that have trouble finding coverage in the private market may be placed through the Florida Workers’ Compensation Joint Underwriting Association, the state’s residual market. An independent broker will try the private market first, where pricing and service are often better, and help you understand your options if that is not possible.

Do Independent Contractors Count as Employees?

Not always, but misclassifying workers is one of the most common workers compensation problems. If you control how, when, and where someone works, provide their tools, and they work only for you, the state may view them as an employee even if you pay them on a 1099. In construction, uninsured subcontractors can be treated as your employees for workers compensation purposes. Collect certificates of insurance or exemption documents from every subcontractor before they start work.

Frequently Asked Questions

Do I need workers compensation insurance in Sunrise, FL?

Most non-construction businesses need it with four or more employees, and construction businesses generally need it with one or more employees.

Does workers comp cover part-time employees in Florida?

Yes. Part-time employees count toward Florida’s employee thresholds and are covered by a workers compensation policy.

How is workers compensation priced?

It is priced mainly on payroll and job classification codes, adjusted by your claims experience, and is usually audited at the end of the policy term.

Related Reading

• Workers Compensation Insurance Florida: A Guide for Small Business Owners
• Business Insurance in Sunrise, FL
• Request a Workers Compensation Quote