You can file a claim against your employer’s workers’ compensation insurance policy if you are injured while working. This insurance is required for most employers in the state.
Here, you can learn more about Florida’s workers’ compensation insurance requirements and the average cost to purchase this coverage.
Workers’ Compensation Insurance Requirements for Florida Employers
Workers’ compensation insurance is required for employers conducting work in Florida. The coverage required varies based on industry, total employees, and entity organization.
Construction Industry Employers
Construction employers with one or more workers (including the business owner) and established the business as a Limited Liability Company (LLC) or corporate officers must maintain workers’ compensation coverage. The trades included as part of the construction industry in Florida are listed in this document.
Non-Construction Industry Employers
For non-construction employers with four or more workers, including business owners who are members of an LLC or corporate officers, must have workers’ compensation insurance.
Agricultural Industry Employers
Employers in the agricultural industry with six regular workers or 12 seasonal workers who work over 30 days per season but under 45 days per year must carry workers’ compensation insurance.
Now that you understand Florida’s basic worker compensation coverage requirements, learn more about what it costs below.
Florida Rates for Workers’ Compensation Insurance Coverage
Florida is a base rate state, which means the state sets the initial insurance rates. All insurers licensed to provide workers’ comp insurance policies in the state must use the rates set by the rating agency selected.
The average rate to purchase workers’ compensation insurance in Florida is $1.66 for every $100 in payroll.
When purchasing this coverage, there is no limit factor to consider. When you request a quote for coverage, the rate is calculated automatically based on your payroll and other factors.
Calculating Workers’ Compensation Insurance Costs
You can use the following steps to determine the cost of workers’ compensation insurance coverage for your business.
Determine What Employees Require Coverage
You can use the guidelines above to determine which workers require workers’ compensation insurance coverage based on your industry.
Use Class Code to Group Workers and Payroll
The number of workers you have dictates if you must have insurance; however, the premium you pay is based on your payroll.
Workers’ compensation insurance rates differ based on employees’ work and the risk associated with their work. Different Classification Codes are used for businesses with employees doing many different types of work, which also means different rates apply.
For example, if your business employs workers for landscape gardening, the rate for 2023 is $4.31 per $100 in payroll. However, for the same business, someone working in the office would have a rate of just $0.82 per $100 in payroll. This is because the office-worker’s job is considered significantly less risky than someone outside working with machines and equipment.
Calculate the (Estimated) Cost of Workers’ Compensation Coverage
The formula you can use to estimate the cost of workers’ compensation coverage is:
(Base Rate x Payroll x Experience Modifier) +/- Credits/Debits = Your Premium
Base Rate. The rates are given for every $100 in payroll. Take your total payroll and divide it by $100. This number is then multiplied by the rate for the specific class code.
Payroll. Your premium is determined by your gross annual payroll rounded to the nearest thousand.
Experience Modifier. The Experience Modifier is assigned to businesses that have operated for several years, reflects its history of claims, and compares it to similar businesses.
Credits and Debits. If you rank above or below average with the Experience Modifier, you may have mandatory credits or debits to calculate in your equation.
Determining What You Will Pay for Workers’ Compensation Insurance
You can use the information above to determine what your business will likely pay for workers’ compensation insurance. Remember, this is mandatory for many employers, and failure to purchase it can lead to serious penalties for your business.
Your Rights as an Injured Florida Worker
If you are injured on the job in Florida, you can turn to your employer’s workers’ compensation insurance to cover your injury-related medical costs and lost wages for the time you cannot work.
If your employer does not have this coverage, they may face harsh penalties. You may also have the right to file a lawsuit against them to recover the benefits you deserve.