Coverages:  Frequently Asked Questions...

• If you are in an industry, other than construction, and have four (4) or more employees, full-time or part-time, you are required to carry workers' compensation coverage (an exempted corporate officer does not count as an employee).

• If you are in the construction industry, and have one (1) or more employees (including yourself), you are required to carry workers' compensation coverage (an exempted corporate officer or member of a limited liability company does not count as an employee).
  

• If you are a state or local government, you are required to carry workers' compensation coverage.

• If you are a farmer, and have more than five (5) regular employees and/or twelve (12) or more other workers for seasonal agricultural labor lasting thirty (30) days or more, you are required to carry workers' compensation coverage.

It protects your company should an employee claim that his or her injury or illness was caused by your company’s negligence or failure to provide a safe workplace.

An agreement between two parties in which one party agrees to waive, in writing, subrogation rights against another in the event of a loss. In layman's terms, if the firm that requests the waiver of subrogation causes the accident or injury, by signing the agreement, the insurance company would be prevented from collecting against the firm, even though they caused it. Sort of like having someone strike you with their automobile, but you can't recover any monies for them for their actions because of the waiver you have agreed to.

Employers are responsible for any job-related injuries that an employee has, whether there is a workers' compensation policy in effect or not.

Further, employees, whether they are Full-Time or Part-Time, are treated the same as to workers' compensation.

The short answer is that as long as you are not insured with a PEO, the answer is "Yes".

If your subcontractors have employees and do not have their own workers' compensation insurance policy, then they would be provided coverage under your policy should they be injured while on the job.

**Note that if your subcontractor does not have coverage, you will be charged premium for the amount you pay the subcontractor, less materials.

If your subcontractor works alone and has an exemption, then they could not file a claim under your workers' compensation policy as they have chosen to be exempt under Florida law.

If your subcontractor has employees and has filed an exemption, then the exemption would only apply to the individual, not any of their employees. In this case, their employees would be afforded coverage under your policy.

If your subcontractors have their own policy then their workers' compensation carrier would respond as to coverage for any injuries. our policy.

If you are insured with a PEO, then there would be no coverage for any subcontractors as a PEO policy covers only the "Employees" that have been reported to them for payroll. There is no coverage for anyone not listed on the policy.

The short answer is "No" if you are insured with a policy written directly with a traditional insurance carrier.

Think of a workers' compensation insurance policy as a instant umbrella. It automatically and immediately covers anyone working for you as soon as they step on the job. This includes:

• Non-exempt owners, officers or members,

• Employees,

• Casual or contract labor, and

• Uninsured subcontractors.

So, no you do not have to report new hires prior to their being covered.

**The exception to this is if you have coverage with a Professional Employer Organization (PEO) or leasing company. They only include those new hires that are reported to and approved by them.

If an employer fails to provide workers' compensation insurance coverage:

• The employee, (or their dependents in the case of death), can file suit in civil court for damages due to a work-related injury or death. T

• The employer would have to defend the suit and pay attorney's fees.

• They would be responsible for benefits due under Florida Statute 440 workers' compensation statute.

• The employer would also be subject to punitive damages for failure to obtain coverage.

Further...

The Department of Financial Services will (FL Statute 440.107)

1. Issue a stop work order

2. Assess a penalty of $1,000 per day against the employer for each day that the employer conducts business in violation of a stop work order

3. Assess a penalty equal to two times the amount the employer would have paid in premium applying the manual rates to the employer's payroll during the periods for which they failed to secure coverage within the preceding two year period, or $1,000, whichever is greater.

The easy answer is to protect your employees and your firm by making sure that you have workers' compensation insurance. Give us a call and we will show you how easy it can be to get your firm covered.