A Breakdown of Workers’ Compensation

When it comes to workplace accidents, illnesses, or death claims, it’s crucial to make sure that your business is insured with appropriate limits of workers’ compensation coverage. Without this coverage (or adequate limits), a business could be subjected to towering expenses for lost wages, medical bills, and other associated costs. Workers’ compensation is beneficial to both the worker and employee. 

Benefits of Adequate Workers’ Compensation Insurance

When an employee is on workers’ compensation, a business needs to ensure they are receiving the medical care and financial compensation they need. In doing this, the employee will heal and return to work sooner which allows the business to assume normal operation. Businesses are responsible for all expenses uninsured or underinsured for such claims and therefore, must be sure to have adequate insurance to avoid or minimize a financial burden. 

Florida Requirements for Workers’ Compensation Coverage

The State of Florida regulates and mandates workers’ compensation coverage. This coverage includes (but not limited too) benefits that pay for medical expenses, lost wages, funeral costs, and legal fees if the claim is compensable. Workers’ compensation laws state that an injured employee can receive up to 104 weeks of financial compensation for lost wages based on their income prior to the claim. The employer is liable for all expenses should they decide not to purchase this coverage. 

The construction industry is regulated a bit different than non-construction. They are mandated to purchase workers’ compensation for all employees including 1099 paid individuals. 1099 individuals in the construction field are NOT considered independent and must be insured under the contractor’s insurance. Out-of-state-employers with employees that reside in Florida are also required to have workers’ compensation insurance. Non-construction businesses with less than four employees are not required to have workers’ compensation coverage, but these businesses will still be held financially responsible if a workplace illness or injury occurs.  

Insurance with Insurance Risk Advisory Group

When choosing Insurance Risk Advisory Group for all your workers’ compensation coverage needs, a comprehensive review of your business will be provided to ensure you are insured properly to help mitigate potential liability as much as possible. Our team of experts can answer any questions you need about the requirements and benefits of this type of coverage.