If you own a business in Melbourne, FL, you may be required to carry workers' compensation insurance. There are many policies your business needs, and the state may regulate some. If you want the right coverage, consult with a professional.
An independent insurance agent can help your business stay within Florida's guidelines. They have access to multiple markets, giving you options. Connect with a local adviser to get started.
What Are the Basics of Workers' Compensation Laws in Melbourne, FL?
Florida requires all business owners to carry workers' compensation when they have one employee or more. While coverage is mandated, it's still a necessary policy for any company. It can save your bottom line from a large expense.
Why your business needs workers' compensation insurance:
First, your business needs coverage because it's required by law. Second, it will help pay for lost wages and medical expenses of an injured or ill employee hurt on the job. Third, an injured or sick staff member waives the right to sue your business when coverage is offered. It's a win-win for all parties involved.
What Does Workers' Compensation Cover in Melbourne, FL?
Your workers' compensation coverage will pay for disability insurance and even death. Medical expenses and lost wages come standard with every workers' compensation policy. This will help your finances when a loss occurs.
If an employee becomes disabled, workers' compensation will pay for the claim and expenses throughout the years. Similarly, this policy will pay for the death benefit to surviving family members when an employee becomes deceased from a work incident. Coverage is needed no matter how risky your operation may appear to be.
Who Does Workers' Compensation Cover in Melbourne, FL?
Your workers' compensation policy in Melbourne, FL, will protect owners and employees alike. Non-exempt partners and officers can be included in the policy coverage for a price. If you use 1099 contractors, you should be aware of a couple of items.
When you have a 1099 contractor, you could be on the hook for a loss. If your company is not in the habit of collecting proofs of insurance from outside workers, you're at risk. A 1099 contractor can file a claim on your general liability, workers' compensation, and even business auto policy if they don't have their own insurance in place.
How Much Does Florida Workers' Comp Cost?
Workers' compensation, like all business policies, varies in price. It will be dependent on several items and should be consulted with a professional. Check out some things the companies consider when deciding your pricing:
- Classification codes: These are set by job duty. The riskier the task, the more expensive the class code will be rated, and the more you'll pay for workers' compensation insurance.
- Prior losses: If you have previous claims, you'll be charged accordingly. The more claims your business has filed, the higher your costs.
- Years in operation: The longer you have workers' compensation coverage, the better.
Florida base rate examples:
The National Council of Compensation Insurance (NCCI) sets the base premiums per job category. The riskier the task, the more it will cost. Take a peek at some examples of base rate ranges per $100 of employer payroll:
- 8721 Real estate appraisal company - outside: $0.27
- 8723 Insurance co. - including clerical and sales: $0.17
- 8742 Salespersons - outside: $0.35
- 8745 News agent - not retail dealer: $4.63
- 8748 Automobile salespersons: $0.61
- 8800 Mailing company and clerical: $1.66
- 8803 Auditors, accountant or factory cost: $0.07
- 8810 Clerical office employees. NOC: $0.17
- 8820 Attorney offices: $0.14
- 8831 Hospital - veterinary: $1.82
- 8832 Physician and clerical: $0.34
- 8855 Banks and trust co. - all employees: $0.18
- 8868 College - professional employees and clerical: $0.44
- 8869 Child care center - all employees: $1.45
Most Common Workers' Compensation Claims in FL
When you own a business, safety should be top of mind. Slip and falls are one of the most common workers' compensation claims in Florida. If your company is not proactive, it could cost you more in the long run.
Carriers look at numerous factors when rating your policy, and one of them is safety. Like professional liability insurance, the more proactive you are, the better workers' compensation premiums you'll get. If you hold regular safety meetings and assign a monitor, you'll have lower pricing across the board.
Where Can You Purchase Coverage?
A trusted adviser can help you find the best general liability, workers' compensation, umbrella insurance, and more. They have licensed agents that do the shopping for you. Instead of navigating individual carriers on your own, consider a professional.
How experience modification rating affects your premium in Florida:
When you have a workers' compensation premium of $10,000 for two consecutive years, Florida assigns an Experience Modification Factor (X-mod). The X-mod will let company underwriters better assess your loss ratio. It will help them determine the pricing based on current and future claims.
How a Melbourne, FL, Independent Agent Can Help
Your business insurance doesn't need to be done alone. An independent insurance agent has access to several markets, saving you time and premium. Since an agent works on your behalf at no cost to you, you'll have options.
An adviser can present multiple choices for your business, so you know you're getting the best price in town. If you're tired of searching for the perfect policy, consult with a professional. Go to TrustedChoice.com to connect with a local expert today.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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