If your business is in Florida and you employee 3 or more part time or full time employees you are required by law to have workers compensation coverage for all employees. For the construction industry the limit is lowered to more than 1 employee. Should an employee be hurt while working, workers compensation insurance would likely cover the expenses with diagnosing and treating the injury. Beyond providing your staff with adequate protection in case of emergency, your business may be safe from any legal claims for negligence by the injured employee when you purchase workers compensation insurance.
While some industries have a higher risk for accidents like construction, other employees do not necessarily work in similar hazardous circumstances. This is the main reason why workers compensation insurance costs differ for every business. To assign each job duty a rate, classification codes were created. In Florida these classifications were created by the National Council on Compensation Insurance (NCCI). In Florida there are over 700 different classification codes and the number is increasing all the time. Another factor in the cost is the location of the company, as some states may have higher insurance premiums.
Employers are able to buy these policies from private insurance companies, or even through the state. State-run insurance can be expensive but may be the only option. Here at First Family Insurance Group we are an independent agency that works with several of the major insurance carriers in the state of FL. We know which carriers have the appetite for your risk at the lowest classification price. Let us work for you and give you unbiased advice to help protect and grow your business for years to come.
These types of policies are made up of six sections. The first section of the policy explains the workers compensation coverage being offered. Here is where the Insurer agrees to pay all workers compensation benefits and other benefits that the employer must legally provide to covered employees who have a job-related injury. The second section refers to the employer’s liability insurance, which covers employers against the possibility of a lawsuit that results from an employee injury. The third section of workers compensation and employers liability policy defines coverage provided in other states. The last three sections of the workers compensation policy specify the insured’s obligations in the event of an injury, the rating procedure used, and the conditions that apply to the policy.