Can a Business Self-Insure Workers’ Comp in Florida?
As an employer, you want to know your options when it comes to Workers’ Compensation insurance. So, can you self-insure in Florida, should, you, and what are some alternative ways to stay protected at an affordable rate?
Florida allows businesses to self-insure Workers’ Compensation insurance, provided they are financially stable. This means your company can pay out claims to injured workers itself instead of paying premiums to a private carrier. While that might seem appealing, it can be risky, especially if workplace accidents happen back-to-back. Contact our brokers if you’re concerned about the cost of Workers’ Compensation insurance premiums, and that is why you’re interested in self-insuring. Our professionals can pair you with an affordable policy from a reliable carrier that doesn’t put your company at financial risk.
Self-insuring can be risky, and our brokers can help you find affordable coverage elsewhere. To learn more about the Florida Workers’ Compensation insurance brokers at NPN Brokers, call today at (561) 990-3022.
Can Your Business Self-Insure Workers’ Comp in Florida?
As an employer in Florida, you might have heard about others self-insuring Workers’ Compensation insurance. But what does this mean, and are you even allowed to take this route in Florida?
Self-insured employers are allowed in Florida. When a business self-insures Workers’ Compensation coverage, it doesn’t get insurance from the state fund or a private carrier. Instead, it promises to pay out claims to employees that are injured at work. This works by using company funds and payments from enrollees to cover workplace injuries and accidents in Florida. Instead of a Workers’ Compensation insurance carrier paying out employee benefits, the employer does it themselves. There are no payroll limits that dictate which businesses can self-insure Workers’ Compensation insurance in Florida.
While self-insured employers are permitted in Florida, there are a few requirements. To take this route, you must prove that your company has the financial strength necessary to cover injured employees’ damages after a workplace accident and must apply to the Florida Department of Financial Services, Division of Workers’ Compensation. Employers that self-insure Workers’ Compensation in Florida must also file annual forms and have additional bookkeeping responsibilities.
So, you can self-insure Workers’ Compensation insurance if your company is financially stable. However, before you make this decision, speak with our Florida Workers’ Compensation insurance brokers to learn more about other coverage options for your business.
Should Your Business Self-Insure Workers’ Comp in Florida?
Choosing to self-insure Workers’ Compensation coverage in Florida is a big decision. At first, employers might think self-insuring is preferable to paying monthly premiums to a private Workers’ Compensation insurance carrier. But is that true? Not necessarily.
When you self-insure Workers’ Compensation insurance in Florida, it is your business’s responsibility to cover the cost of an employee’s work-related injuries. While injured employees typically cannot sue a self-insured employer for additional damages in Florida, self-insured companies are still liable for a certain amount of damages following an accident.
Businesses in high-risk industries, and even those that think they’re unlikely to have many workplace accidents, might think that self-insuring lowers the cost of Workers’ Compensation coverage. In reality, it can have the opposite effect. When you get coverage through our Florida Workers’ Compensation insurance brokers, you only have to pay monthly premiums. When you choose to self-insure, your company has to pay out benefits to injured employees personally. This can get expensive quickly, especially if your business experiences several severe workplace accidents in a short period.
Before you choose to self-insure Workers’ Compensation insurance in Florida, think about the administrative aspect, not just the cost. When you self-insure Workers’ Compensation insurance, you may need to add entire departments to deal with claims processing and other administrative duties associated with reviewing, approving, and paying out Workers’ Compensation benefits.
At the end of the day, self-insuring Workers’ Compensation may be a risk for your business. Contact our Florida Small Business Workers’ Compensation insurance brokers to learn about your other options.
Alternatives to Self-Insuring Workers’ Comp for Florida Businesses
When having difficulty finding Workers’ Compensation insurance in Florida, businesses might think that self-insuring is the best way to go. In reality, self-insuring Workers’ Compensation insurance is a risk that might weaken your company financially. There are alternatives to this that can lower your Workers’ Compensation insurance costs. To learn more about them, speak with our brokers.
While it can seem hard to find affordable Workers’ Compensation insurance that meets your needs and is preferable to self-insuring, it becomes considerably easier when you partner with our brokers. Our team of experienced brokers has relationships with dependable carriers that offer transparent and affordable rates. We can pair your business with a carrier that doesn’t require audits, contracts, or deposits, reducing your spending and increasing flexibility in several areas.
An attractive alternative to self-insuring Workers’ Compensation insurance is getting pay-as-you-go coverage from a private carrier. This type of insurance bases monthly premiums on current payroll numbers so that you only pay for employees you currently employ. Other plans base premiums on annual payroll estimates, which might be what steers some businesses to self-insuring Workers’ Compensation insurance.
There are other, more stable alternatives to self-insuring Workers’ Compensation insurance for businesses in Florida. By working with our brokers and getting an affordable policy from a private carrier, you can protect your business without being personally liable for an employee’s injuries in a workplace accident.
Call Our Brokers to Get Workers’ Comp Insurance in Florida Today
If you want affordable policy options instead of self-insuring, contact our brokers for more information. To learn more about the Florida Workers’ Compensation insurance policy quotes at NPN Brokers, call today at (561) 990-3022.
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