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What is workers’ compensation insurance?

I own a small business in Florida. I currently have no employees, but my business is growing and I’m thinking of hiring several full-time workers. What is Florida workers’ compensation insurance? Do I need to purchase it? If so, what does workers’ compensation insurance cover in Florida? 

Thousands of workplace injuries occur in Florida each year. Most injuries are minor, like sprained ankles from trip and fall injuries. But serious injuries like lost limbs and even deaths related to industrial accidents also happen. 

As a business owner, you’re responsible for helping your employees get the care they need if they’re injured on the job. The costs related to workplace injuries, whether from numerous small injuries or one serious incident, can be devastating for any Florida business, no matter the size.

Florida workers’ compensation laws were enacted to protect injured employees from the costs of workplace injuries, as well as to protect employers from being sued for damages. Workers’ compensation insurance in Florida is mandatory for most employers. 

Under the Florida workers’ compensation law, Florida employers may not sue an injured worker for causing an accident, nor can an injured worker sue the employer for his or her injury. This no-fault trade-off allows injured workers to receive the medical care they need regardless of who was at fault for the accident. 


What does workers’ compensation insurance cover in Florida?

Florida workers’ compensation insurance covers all accidental injuries and occupational diseases arising out of and in the course and scope of employment, including diseases or infections resulting from such injuries. It also covers deaths resulting from such injuries within specified periods of time. 

Most employers in Florida are required to purchase workers’ compensation insurance. Some of the specific requirements are as follows:

  • Florida’s workers’ compensation law requires all non-construction employers who have four or more employees to purchase workers’ compensation insurance. Construction employers who have one or more employees must purchase it. 
  • Agricultural employers who have six regular employees and/or twelve seasonal employees who work more than 30 days during a season, but not more than a total of 45 days in a calendar year, must have workers’ compensation insurance in Florida.
  • Subcontractors are responsible for providing Florida workers’ compensation for their employees; however, the primary contractor must ensure that the subcontractor has provided the coverage for its workers. If a worker is injured and the subcontractor has not provided Florida workers’ compensation insurance, the contractor must pay the benefits. 
  • In Florida, sole proprietors and partners are excluded from coverage, but they can elect to be covered by their workers’ compensation policy. Sole proprietors and partners in the construction industry must be covered. 
  • Corporate officers or members of an LLC are included in Florida workers’ compensation coverage, but they can apply for an exemption for themselves. Corporations or LLCs in the construction industry can have up to three officers opt out of coverage if each owns at least 10% of the business. 
  • Florida workers’ compensation excludes workers who are covered under the Federal Employers Liability Act, The Longshore and Harbor Workers’ Compensation Act, or the Jones Act.

What are the other benefits of Florida workers’ compensation insurance? 

Workers’ compensation insurance in Florida provides several specific types of benefits to injured workers. 

Lost Wages

If an employee is injured on the job and is unable to work as a result, Florida workers’ compensation insurance pays for lost wages. The amount of compensation that the employee receives depends on the severity of the injury and the amount of time that the employee is away from work. Generally, Florida workers’ compensation insurance pays benefits for:

  • Temporary total disability (the employee temporarily cannot work at all)
  • Temporary partial disability (the employee can work but can temporarily only work on a restricted basis or at a different job)
  • Permanent impairment (the employee can permanently no longer work in his or her previous job, but can work on a restricted basis or at a different job)
  • Permanent total disability (the employee is permanently disabled and cannot work again in any capacity)

Medical Benefits

Florida workers’ compensation insurance pays for all medical care that is necessary to treat a work-related injury or illness, including: 

  • Doctor visits
  • Specialist visits
  • Hospitalization
  • Physical therapy
  • Medical tests
  • Prescription drugs
  • Prostheses 
  • Attendant care
  • Mileage reimbursement

Vocational Rehabilitation

Florida workers’ compensation insurance helps injured workers who cannot return to their normal job pay for vocational services such as placement services, vocational counseling, training, education, and other help finding new employment

Death Benefits

When an employee dies as a result of a work-related injury or illness, Florida workers’ compensation insurance may provide death benefits to the worker’s spouse, children, or other dependent relatives. If a work-related death occurs within one year of the date of the accident or five years of continuous disability, the following benefits may be due and payable up to a maximum of $150,000:

  • Funeral expenses up to $7,500
  • Compensation to dependents, as defined by law
  • Educational benefits to the surviving spouse

Article Reviewed by | Paul Martin

https://www.myfloridacfo.com/division/wc

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