Do I Need Workers’ Comp for My Son or Daughter in Florida?

Most businesses in Florida are required to have workers’ compensation insurance. Generally speaking, if a business employs more than four people, they must provide workers’ compensation insurance; the minimum number of employees that requires a business to have workers’ compensation insurance is different for agricultural companies and construction-related companies.

Business owners should know that they can seek the help of NPN to find workers’ compensation insurance in Florida. You can get a fast quote from NPN by visiting their website and entering information about your employees, the nature of your business, and the insurance you want. Keep reading about workers’ compensation requirements if you employ a son, daughter, or other family member in Florida.

Are Family Members Exempt from Workers’ Comp?

If a business owner employs their son or daughter at their business, they must have workers’ compensation insurance like any other employee. In the State of Florida, almost all companies need to have workers’ compensation insurance, no matter if they employ a family member or not. The type of work that a business does and the number of employees that they have determines whether or not they are required to have workers’ compensation insurance.

Companies that do work in the field of agriculture or farming must have workers’ compensation insurance if they have at least 6 full-time employees or at least 12 seasonal employees. Companies that work in a construction-related field must have workers’ compensation insurance if they have at least one employee. Construction-related work is a broad field that includes carpentry, plumbing, electrical work, heating and air conditioning, landscaping and tree removal, and much more. Companies that do neither agricultural work nor construction-related work must get workers’ compensation insurance if they employ four people or more.

As many as three corporate officers may be exempt from needing workers’ compensation insurance if they can prove that they have an ownership stake in the company that exceeds 10%. Contractors and subcontractors are considered to be employees and will require workers’ compensation insurance, while sole proprietors are not – though sole proprietors may benefit from workers compensation insurance and may buy it for themselves if they choose.

What Workers’ Compensation Insurance Covers

Workers’ compensation insurance covers the costs incurred from injuries suffered while on the job. It benefits both employers and employees: With workers’ compensation insurance, both employers and employees can be certain that employers will not have to pay for employees’ injuries.

The benefits that are paid to employees through workers’ compensation insurance include medical bills (medication, physical therapy, visits to a physician’s office, stays in the hospital, ambulance rides, and more) and wages that were lost as a result of an inability to work. Another workers’ compensation benefit that may be received is the death benefit, which is paid to the families of employees that die while working; these benefits include up to $7,500 in funeral expenses and up to $150,000 for the deceased’s dependents.

Employees that have workers’ compensation policies should note that there is a statute of limitations that prescribes the amount of time they have to file a workers’ compensation claim. Workers have only two years to file a workers’ comp claim following their injury. Minors and those deemed mentally incompetent are exempt from the statute of limitations, as well as people who were misled about their coverage or not properly informed about their rights.

If injuries in the workplace happened under certain conditions, they may not qualify for benefits through workers’ compensation insurance. If an injury happened while the employee was failing to observe safety rules or was not wearing the safety equipment that they should have been wearing, then they will not qualify for benefits. Also, if an employee was under the influence of alcohol or an illegal substance, or if they inflicted the injury on themselves, then they will not qualify for benefits through workers’ comp insurance.

Penalties for Failing to Have Workers’ Compensation Insurance for Family Members or Other Employees

Companies in Florida may face severe penalties for not having workers’ comp insurance. One penalty is susceptibility to lawsuits by injured employees. If an injured employee files a claim against an employer, the employer will have to pay for the employee’s injuries out of pocket.

Failing to have workers’ compensation insurance may also result in fines being issued by the State of Florida. The fine may be either $1,000 or twice the amount that the business would have paid in premiums over the period during which they did not have coverage.

In certain situations, companies that do not have workers’ compensation insurance may lose their right to conduct business. The State of Florida may issue a stop-work order to any company that fails to have the proper insurance; the stop-work order will remain in place until that company comes into compliance with the Florida Administrative Code.

Occasionally, some employers attempt to skirt the workers’ compensation requirement by claiming that employees are actually independent contractors. Doing so is considered to be a form of insurance fraud and can result in a fine of $5,000 or fraud charges and imprisonment.

Get a Workers’ Compensation Insurance Quote Today

NPN Brokers wants to help businesses of every size and type find a workers’ compensation policy that is affordable and comprehensive. Visit NPN Brokers’ website to get a quote on a policy that is tailored to the needs of your business and employees. If you would like more information about how Florida workers compensation insurance brokers NPN Brokers can provide the right policy for you, call (561) 990-3022 today.