U.S. states are responsible for establishing workers’ compensation laws for businesses that operate within their jurisdictions. In Florida, there are separate requirements for businesses in construction, non-construction and agricultural trades, with the former being more restrictive. You should not assume that all construction businesses have workers comp coverage, however, since the Florida workers comp exemption allows certain employees to apply for an exemption.
Understanding Florida Workers Comp Requirements
Most businesses with four or more employees, members or officers that operate in the state of Florida are required to carry workers comp insurance, although there are slightly less restrictive provisions for agricultural businesses. Companies that are involved in construction must provide proof of coverage if they have one or more applicable employees. That includes corporate officers or LLC members.
How the Florida Workers Compensation Exemption Works
If a corporate officer or LLC member wishes to exclude themselves from workers comp coverage, they must file an application for exemption with the Division of Workers’ Compensation. An application does not guarantee an exemption will be granted. If it is granted, that person is no longer considered an employee and is not entitled to any potential benefits in the event of an accident or injury.
It is important that all businesses comply with applicable laws and requirements, including who should be included in workers’ comp coverage and who may apply for an exemption.
Making the most practical decisions when it comes to an insurance policy for your business helps you yield the best results from your efforts. Of course, this is often easier said than done. Many business owners are not completely sure of the options available to them. Understanding the differences of PEO vs EOR, for example, can provide you with the data you need to make an informed decision for your company’s future.
Obligations and Responsibilities
As mentioned on https://www.monarchpartnersgroup.com/, an Employer of Record is a program that can provide a business with access to workers’ compensation plans and similar areas of coverage. It is very similar to the operations of a Professional Employer Organization. However, EOR will act as the sole party responsible for paying expenses like payroll and taxes associated with taxes. This can make a big difference, as PEO typically shares this responsibility with the business itself. Other key differences include:
- EOR assumes more risks than PEO
- EOR can handle seasonal and temporary workers
- EOR handles overseas employees
Making Informed Decisions
Weighing out the key differences between PEO and EOR can provide you with insight on which will work best for the needs of your establishment. Look over the details and it will provide more clarity on the option that is best fit for meeting the demands of your specific industry.
There are times when a company needs to extend its employee injury insurance past the workers’ comp coverage they carry. Most states allow for companies to carry private insurance coverage for mandated injury liability, but four do not. These include North Dakota, Ohio, Wyoming, and Washington. Within these states, companies are required to obtain coverage through state-funded programs, which leaves a gap in some additional areas of liability. The information found at https://www.wwspi.com states that stop-gap insurance addresses this exposure.
Areas of Liability
The exact nature of gap insurance is what other companies carry in the form of employer liability coverage. This covers the potential suits of
- Third-party suits
- Public tort claims
- Intentional endangerment
- Dual capacity claims
- Injury or illness not covered by workers’ comp plans
Additionally, leased employees are excluded from the worker’s compensation plans. The endorsement of employer liability would be enacted in most states, but within the four mentioned above, stop-gap insurance becomes the defense.
The Cost of Coverage
Most insurance companies will determine the base price of stop-gap coverage according to your company’s payroll total. For normal liability policies in private insurers, it is often an endorsement set at a minimum amount. Check your current policy to see if employer liability is addressed, and if not, contact your broker for a quote on extending your coverage.
No matter how many precautions you might take with your business, accidents can happen. Knowing how to respond to these problems can make all the difference for your future. Above all else, you need to have a clear understanding of indemnity costs workers compensation and how you should be reacting immediately following an accident.
Prolonging a claim can create serious complications down the line. According to the professionals at https://www.nsins.com, the best way to get the most from your coverage is by reporting a claim as soon as an accident occurs. A failure to do this can cause a number of problems including:
Increased odds of denial
Protect Your Team
Outside of the financial costs to your company, these accidents also have a negative impact on your internal employees. An injury can lower morale and make other workers feel unsafe. Use this time to talk to your team and refresh everyone on your company’s safety standards. This is a great time to calm fears by providing helpful information about avoiding accidents in the future.
When you know what steps to take after a member of your team is injured in the workplace, it can make all the difference for your company. Take action right away and report the claim to see the best results from your compensation policy.