The requirements for workers comp insurance vary from state to state. If you are licensed to do business in the state of Florida, it is important to understand the state of Florida’s unique laws and how these laws pertain to your business as you are building your insurance portfolio. Whether or not you, as a business owner, are required to buy worker’s compensation insurance to protect your employees will depend entirely on your industry. The requirements for the construction industry are very strict, but the requirements get a bit more lenient in the agricultural industry. Read on and gain an understanding on whether or not you must pay worker’s compensation premiums to satisfy the state laws.
All businesses that are in the construction industry are required to have ample worker’s compensation insurance that covers payroll. The reason why all construction businesses must have insurance is because of the way the requirements are worded. Any business in the industry, including sole proprietors and partnerships, that has one or more employees must carry insurance on a continuous basis. The premiums that you pay for coverage will be based on the total payroll and the risk classification of each of the employees you employ.
The requirements in the agricultural industry are a bit different because of its seasonal nature. If your business is in this industry, the requirements for insurance will depend on whether or not your employees are seasonal. If you have regular employees who work all year-round, you must carry insurance once you have 5 or more employees on payroll. If you employ seasonal employees who work for 30 days or more throughout the year, the business must have insurance when there are 12 seasonal workers on the payroll at the same time.
The risk classifications for each industry may vary, but the requirements for any other business outside of the construction and agricultural industry are the same. Businesses in any other industry in the state of Florida must carry worker’s comp insurance if there are 4 or more part-time or full-time employees on payroll at the same time. Independent contractors do not count as employees.
Now that you understand the basics of which businesses do and which businesses do not need worker’s comp, start requesting quotes and price coverage. Be sure that your employees are classified properly, and verify the payroll you submit to ensure your quote is as close as possible.