Is Workers’ Compensation Insurance Required by Law?
Whether you’re a business owner or an employee, getting injured on the job is the last thing that anyone wants to think about. Unfortunately, workplace injuries are a harsh reality. In the United States alone, millions of work-related injuries occur every year. Fortunately, workers’ compensation insurance can help protect employers and employees in the event that someone is hurt while on the job. However, this leads to the question of whether workers’ compensation insurance is required by law.
As experienced workers’ compensation lawyers in Gainesville, FL our office understands the importance of being educated on workers’ compensation insurance. Let’s look at the legal requirements for workers’ compensation insurance in the state of Florida.
What is Workers’ Compensation Insurance?
Workers’ comp is a phrase that you’ve probably heard more times than you remember. However, there are many people who don’t fully understand what workers’ compensation insurance is or how it works. To put it simply, workers’ compensation insurance can protect a business in the event that an employee is injured – sometimes even killed – while performing work-related duties.
These insurance policies are designed to pay for lost wages and/or medical expenses associated with workplace injuries. It’s important to keep in mind that a person may still be eligible for workers’ compensation even if their injury didn’t occur on work property. For example, a delivery person who is injured while making a delivery may still be eligible to file a claim.
What Happens If Someone Is Injured On the Job?
If a workplace injury results in a medical emergency, it’s important to call 911 right away. The injury should also be reported to a supervisor so that proper documentation can be made. After that, a workers’ compensation attorney should be the next call. An attorney who has experience with workers’ compensation law can help the injured party understand the process of filing a claim. Please note that Florida workers’ compensation law has a two-year statute of limitations for filing most workers’ compensation claims.
Once an employer has been notified that an injury has taken place, it must report the claim to its insurance company within seven days. In turn, the insurance company will investigate the situation to determine the injured person’s eligibility. In the event that a claim is denied, a workers’ compensation attorney can help with the appeal process.
Are Businesses Required to Have Workers’ Compensation Insurance?
Laws governing workers’ compensation insurance vary from state to state. In Florida, all businesses that have at least four employees must carry a workers’ compensation insurance policy. This includes businesses that only have part-time employees. However, businesses that only have independent contractors are not required to have workers’ compensation insurance. While this requirement may seem daunting to some business owners, the good news is that workers’ compensation insurance can be fairly affordable.
On average, a business can expect to pay around $1.30 for every $100 covered in payroll. Ultimately, the final cost will depend on several factors such as the number of employees working for the company and the risks associated with the industry.
What Are The Consequences Of Not Having Workers’ Compensation Insurance?
Since the majority of businesses in Florida are legally required to have workers’ compensation insurance, those who break that law can face serious penalties. Among those penalties are fines, civil lawsuits, and stop-work orders.
Our Office Is Here to Help
If you still have questions about workers’ compensation insurance, you’ve come to the right place. At Avera and Smith, we have more than 65 years of experience with workers’ compensation laws in Florida. Partner Lance Avera is board certified in Workers’ Compensation law. Contact us today for a free consultation to learn more about what we can do for you.