Insurance Companies:  Frequently Asked Questions...

An insurance company with no capital stock, and owned by policyholders. The equity and earnings of the company - over and above the payments of the losses, operating expenses and reserves - are the property of the policyholders. There are two types of mutual insurance companies:

• A non-assessable mutual charges a fixed premium and the policyholders cannot be assessed further. Legal reserves and surplus are maintained to provide payment of all claims.

• An assessable mutual is a company that charges an initial fixed premium and, if that isn't sufficient, might assess policyholders to meet losses in excess of the premiums that have been charged.

A self-insured fund is an association of employers formed for the specific purpose of providing statutory workers’ compensation coverage. This insurance vehicle is for employers that do not have the size or financial capacity to self-insure on their own. It allows small to medium sized companies to assume some control over their workers compensation costs and benefit from the cost savings that self-insurance provides. Normally, employers who join to form a SIF must be homogeneous, meaning they are similar in industry or class codes (i.e. contractors, manufacturers, wholesalers, etc.).

An incorporated insurance company with capital contributed by stockholders, to whom earnings are distributed as dividends on their shares. The equity and earnings of the company - over and above the payments of the losses, operating expenses and reserves - are the property of the stockholders.

Professional Employer Organizations are firms that provide human resources, employee benefits, payroll/tax processing and workers' compensation for businesses that desire to pay for such services rather than address them directly within their organization.

A Professional Employer Organization or "leasing" company is an alternate way to obtain workers' compensation insurance coverage. You sign a contract with them to process your payroll, payroll taxes and provide you with workers' compensation insurance coverage.

Since you are covered by their policy, you:

1. Cannot choose coverage limits

2. Cannot receive credits that you can on your own policy

3. Cannot choose to exempt the owners since the owners are not owners of the PEO

4. Only have coverage on those employees reported to and approved by the PEO

5. Do not have coverage for non-reported employees, casual labor or uninsured subcontractors.

While the actual coverage provided to the employee for both types of insurance are the same, there is a HUGE difference in the who is covered. For a better explanation of this...

Click this link to go to our PEO page:

The State of Florida requires that most employers obtain coverage for workers' compensation for their employees. Since they have this requirement, they provide the FWCJUA as an option for employers that are unable to find coverage with traditional carriers.

The good news is that you can obtain coverage there.

The bad news is that it costs more to be insured through the FWCJUA.

There are three tiers to the fund and each has a different surcharge. The tier that you fall into depends on your:

1. Length of time in business

2. Claim history

3. Coverage history

4. Experience Rating

For most employers, WCA can provide you with coverage within the voluntary market. There are times that we may not be able to get you coverage and you may need to seek out other options. This may be due to:

1. Operations (High Risk)

2. Claims Experience

3. Cancellation due to Non-payment or Non-Cooperation with an Audit

If for one of the above reasons, you have sought coverage and have been unsuccessful, you can go to the FWCJUA website and seek coverage. Here is a link and their telephone #.

Website: https://www.FWCJUA.com/

Telephone: 941-378-7400