Who is Exempt from Worker’s Compensation Insurance in Florida?

While most companies are required to purchase Workers’ Compensation insurance in Florida, not all are. To learn more about your company’s insurance requirements, reach out to our brokers.

Almost all businesses in Florida are required to get Workers’ Compensation insurance, although there are some exceptions. Whether or not a business is required to get Workers’ Compensation insurance depends on a few factors: the number of employees they have, the industry that they do work in, and whether the employee is an independent contractor, sole proprietor, or a partner of the business. Even if your company is exempt from Workers’ Compensation insurance requirements in Florida, it is still wise to purchase coverage in case of a workplace injury. Otherwise, your company may be vulnerable to expensive penalties and financial liability for an employee’s injuries.

You learn more about who is exempt from Workers’ Compensation insurance in Florida and how the Florida Workers’ Compensation brokers at NPN Brokers can assist you, call us today at (561) 990-3022.

People that Are Exempt from Workers’ Compensation Insurance in Florida

Almost all employees in the State of Florida must be covered by their employers’ Workers’ Compensation policies. However, certain employees are exempt from having Workers’ Compensation policies, such as the following:

• Employees of companies with four or fewer employees, except for agricultural companies and construction companies
• Employees of agricultural companies that employ six or fewer full-time employees or 12 or fewer seasonal employees
• Corporation officers in non-construction companies are exempt from needing Workers’ Compensation insurance if the corporation is in good corporate standing. Up to three corporate officers of construction companies may be exempted from needing Workers’ Compensation insurance in Florida
• LLC members in non-construction and construction companies may file for an exemption if they meet the necessary criteria in Florida

Independent contractors and sole proprietors outside the construction industry are automatically excluded from the Workers’ Compensation insurance system in Florida. It should be noted that employees of companies that do construction or construction-related work are required to have Workers’ Compensation insurance if they employ even one person. This includes companies that do work that is similar to construction, including electrical work, concrete and stonework, landscaping and tree removal, plumbing, and more.

How to File for a Workers’ Compensation Insurance Exemption in Florida

As an LLC member or corporation officer in Florida, you may be able to file for an exemption from Workers’ Compensation insurance. Before you do, speak with our Florida Workers’ Compensation insurance brokers so that you understand the risks.

In some cases, LLC members and corporation officers can exempt themselves from their company’s Workers’ Compensation insurance policy in Florida. The following are the exemption criteria for LLC members and corporation officers of non-construction companies:

• The company must be registered and listed as active with the Florida Department of State, Division of Corporations
• Corporation officer applicants must be listed as an officer with the Florida Department of State
• LLC member applicants must have at least 10% ownership of an LLC
• Neither LLC members nor corporation officers can have an active stop-work order or working-in-violation order against their company

The following are the exemption criteria for LLC members and corporation officers of construction companies in Florida:

• The company must be registered and listed as active with the Florida Department of State, Division of Corporations
• Corporation officer applicants must be listed as an officer with the Florida Department of State
• LLC member applicants and corporation officer applicants must have at least 10% ownership of a company
• No more than three LLC members or corporation officers of the same company can be exempt from Workers’ Compensation insurance
• Neither LLC members nor corporation officers can have an active stop-work order or working-in-violation order against their company
• There is a $50 application fee

Filing for a Workers’ Compensation insurance exemption can be risky, especially if you are to sustain a work-related injury yourself. In that case, you, as an employer, would not be able to file a Workers’ Compensation insurance claim in Florida.

Does Florida Require Workers’ Compensation Insurance for Certain Companies?

While some companies and employers are exempt from Workers’ Compensation insurance requirements in Florida, many are not. It is best to seek guidance from our Florida Workers’ Compensation insurance brokers to learn whether or not you need coverage, as most businesses do.

In Florida, all companies in the construction industry must purchase Workers’ Compensation insurance, regardless of payroll. This includes sole proprietors that work for themselves or work alone in the construction industry. Non-construction companies will need comprehensive Workers’ Compensation insurance if they employ more than four employees and are outside the agricultural industry. Those in the agricultural industry must purchase Workers’ Compensation insurance if they employ more than six full-time or 12 seasonal workers.

These rules cover the majority of businesses in Florida, meaning most companies are required to purchase Workers’ Compensation insurance. Employers should not assume that they can go without coverage in Florida at any given time, as changes to payroll or industry might alter your insurance requirements.

Can You Choose to Get Workers’ Compensation Insurance in Florida if You Are Exempt?

Even if your company is exempt from Florida’s Workers’ Compensation insurance requirements, that doesn’t mean you should go without coverage. Workers’ Compensation insurance provides important protection to employers in case of a workplace injury, meaning it can benefit all types of companies in Florida.

Despite being exempt from Workers’ Compensation insurance requirements in Florida, your company should still purchase coverage. Workplace injuries might happen anywhere and at any time, regardless of risk factors like industry or payroll. To ensure your company is protected from financial liability in the event of a workplace accident, get Workers’ Compensation insurance even if you are not required to by law in Florida.

If you are not mandated to have Workers’ Compensation insurance in Florida, it might seem like an unnecessary expense for your business. Our experienced Florida Workers’ Compensation insurance brokers can help you find affordable coverage that keeps your company protected without breaking the bank so that you can avoid difficulties after a workplace accident.

Workers’ Compensation Policy Benefits in Florida

The purpose of Workers’ Compensation policies is to cover the cost of injuries that employees sustain while they are working. The costs that Workers’ Compensation policies cover typically include medical bills and lost wages in Florida.

Workers’ Compensation policies usually cover the costs of hospital stays, medication, occupational therapy, medical equipment, visits to doctors, and ambulance rides. Lost wages that injured employees can recover are only partial and are capped when they reach a certain amount. Workers’ Compensation policies do not include compensation for pain and suffering that the employee suffers as a result of their injury.

Workers’ Compensation policies can also provide death benefits in the event of a death on the job. The benefits will be issued to the family of the deceased employee and will cover up to $7,500 for the cost of the funeral. Surviving dependents can also receive up to $150,000.

If an employee inflicts an injury on themselves in an attempt to get Workers’ Compensation benefits, they will not be eligible to receive benefits through a Workers’ Compensation policy. They will also be ineligible to receive Workers’ Compensation benefits if they fail to follow safety protocols (e.g., wearing proper safety equipment) or if they were intoxicated or using illicit substances when they were injured. Employees should also note that they only have two years following their injuries to file for Workers’ Compensation benefits in Florida unless they were a minor, mentally impaired, or misled about their coverage, in which case they will have more time to file a claim.

What Can Happen if You Don’t Have Workers’ Compensation and Are Not Exempt in Florida?

Not getting Workers’ Compensation insurance when required can have serious implications for employers in Florida. In addition to possibly being financially liable for an injured worker’s losses, employers may also face lofty financial penalties and other consequences for non-compliance in Florida.

There are penalties for not getting Workers’ Compensation policies that employers should be aware of. Employers can face fines up to $1,000 for failing to have a Workers’ Compensation policy or a stop-work order, which will require them to cease working until they comply with Florida’s Workers’ Compensation laws. In addition to these penalties, employers may face fines of up to double the amount they should have paid in insurance premiums for any time they were uncovered over the past two years.

Companies that fail to get Workers’ Compensation policies for their employees also make themselves susceptible to lawsuits from employees, which can include much more compensation than what they would receive in a typical Workers’ Compensation policy.

Pricing Workers’ Compensation Policies in Florida

If you own a company exempt from Workers’ Compensation insurance requirements in Florida, you might think that the cost of coverage is not worth it. In reality, our brokers can pair your business with an affordable plan that meets its needs and protects employees.

The price of a Workers’ Compensation policy depends on a couple of things: the riskiness involved in doing an employee’s job and whether the company has filed Workers’ Compensation claims in the past. The NCCI (National Council of Compensation Insurance) is responsible for assessing and determining the amount of risk involved in each job. Their assessment is then used to calculate the price of a policy for each job. Jobs that carry a high level of risk can almost always be more expensive to insure than those that don’t.

Both the amount and degree of severity of a company’s past Workers’ Compensation claims play a role in the price that they can expect to pay for a Workers’ Compensation policy. For instance, businesses that have existed for less than three years can expect to pay more for their Workers’ Compensation policies.

If your company is not required to get Workers’ Compensation insurance in Florida, chances are that its policy premiums will be lower. Remember, only higher-risk companies in certain industries or with a certain number of employees are mandated to have coverage in Florida. If your company isn’t high-risk, the cost of Workers’ Compensation insurance may be considerably lower, keeping your business protected at a fraction of the price.

Getting a Quote for a Workers’ Compensation Policy for Your Florida Business

Getting several Workers’ Compensation insurance quotes is important so that a business owner can more easily evaluate costs and policies. Our brokers can help you source quotes quickly so that you can find comprehensive coverage right away.

Companies that would like to get Workers’ Compensation policies for their employees are encouraged to visit NPN Broker’s website to get a Workers’ Compensation policy quote. You can provide information about your employees, your business, and the industry you work in and get a quote in only a few minutes. Quotes can be bound in less than 48 hours.

Once you get a Workers’ Compensation insurance policy quote, our brokers can help you evaluate it. Based on your industry, payroll, and other risk factors, our Florida Workers’ Compensation insurance brokers can help you determine if a quote is fairly priced. Because our brokers have relationships with insurance companies that don’t require expensive deposits, contracts, or audits, you may be able to find an attractive policy that’s flexible, affordable, and comprehensive within a matter of days.

Contact NPN Brokers Today for Workers’ Compensation Policies and Exemptions for Your Small Business in Florida

Getting a good Workers’ Compensation policy doesn’t have to be difficult. Use NPN Brokers Workers’ Compensation brokering services to find a policy that protects both you and your employees. Contact the Florida Workers’ Compensation insurance brokers at NPN Brokers today to discuss the right policy for you or to get a quote on a policy. Call us today (561) 990-3022.