Small Business Owner’s Guide to Workers’ Compensation in Florida

You’re an expert at your business and we know insurance, especially niche coverages like workers' compensation, can be overwhelming. While it's often confusing, workers' compensation is also mandatory for businesses with four or more employees – even if they are remote workers.  

What is Workers' Comp? 

Workers' compensation is an insurance coverage that offers medical care and financial compensation to employees injured or ill because of their job, with costs fully borne by employers. Importantly, employees forfeit their benefits if found intoxicated at the time of injury.  

Most Florida businesses with four or more employees, full-time or part-time, must have workers' compensation insurance. Several industries, like construction, manufacturing, healthcare, hospitality, transportation, delivery services, and agriculture, have specific coverage requirements that need to be addressed to maintain a business license in the state. 

Why is Workers' Compensation Required for Businesses? 

While you don’t always think about it, accidents happen every day. If your business is vandalized or damaged after a storm, your general liability insurance may cover the loss of income and wages. However, if an employee is injured while performing work duties, they will need workers’ compensation insurance to help them with their loss of income while recovering. 

Essentially, workers comp is crucial for legal protection, reducing lawsuit risks, encouraging workplace safety, covering medical bills, and providing for families in case of work-related deaths. It’s a blend of protecting your employees and your business. 

Does Workers’ Compensation Cover Remote Work Employees? 

Remote work employees should be included in your workers’ compensation insurance policy. Whether or not the insurance company agrees to pay a claim is a little more tricky. Because remote work employees flow between at-home responsibilities and job responsibilities, it’s harder to prove that the injury was a result of work activities. However, the Florida-based attorneys at Rosenthal, Levy, Simon and Sosa list these as possible ways an employee can win a claim from an insurance carrier: 

• You were on the clock and engaged actively in one of your regular job duties when you were injured. 
• You were hurt while doing a work-related task that wasn’t solely personal, like moving equipment or tools you need for your remote workplace. 
• You were on the clock and got injured while you were taking a reasonable break from work. Workers’ comp insurance generally covers breaks when they happen in the workplace, so they must also be covered while working remotely. 
• You developed your injury over time because of your job duties. A classic example of this is a repetitive strain injury like a back injury or carpal tunnel syndrome. 

How Does Workers' Comp Help the Business and the Employees? 

For employees, Workers' Compensation offers financial and medical support without the need to prove the employer's fault, covering expenses like medical bills and part of their lost wages. Businesses benefit by limiting their exposure to lawsuits and ensuring a smoother, structured approach to handling workplace injuries, which can otherwise be costly and damaging. 

How Can I Save Money on My Workers' Compensation Insurance? 

Saving on workers' compensation insurance involves a few strategies, such as maintaining a safe workplace to reduce the incidence of claims, accurately classifying employees to ensure proper rates are applied, and actively managing any claims that do occur to expedite return to work. Implementing a safety program and regularly reviewing your insurance policy for any inaccuracies can also lead to substantial savings. 

For a more in-depth look at navigating workers' compensation in Florida, consulting detailed resources and possibly seeking advice from insurance professionals is recommended. We have professionals here at Niceville Insurance who can help you find the right workers’ compensation insurance even if you have found it hard to be placed with a policy. We can also work with your internal team to build risk management procedures that bring your costs down over time.