Protect Your Florida Construction Business with Workers' Compensation Insurance
Part of our guide to general contractors insurance in Florida.
A general contractor in Jacksonville recently faced a $150,000 claim when an employee fell from a scaffold. Without Workers' Compensation, the contractor had to pay out of pocket. In Florida, workers' compensation is generally required once you have 4 or more employees. This coverage pays for medical bills and lost wages when employees are injured on the job. General contractors in Florida need Workers' Compensation to avoid costly lawsuits and financial losses. The estimated premium is $65-$240/month, varying based on revenue, payroll, and coverage limits.
Workers' Compensation cost for general contractors in Florida
Illustrative monthly workers comp estimate for a small general contractor operation in Florida. Actual pricing depends on revenue, payroll, coverage limits, claims history, and carrier. Get a personalized quote to see your real price.
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What Workers' Compensation Covers for General Contractors in Florida
Workers' Compensation insurance pays for medical bills and lost wages when employees are injured on the job. For example, if an employee in Tampa falls from a ladder and breaks their leg, Workers' Compensation will cover the medical bills and lost wages. However, it does not cover damages to equipment or property, which would be covered by a different policy. Another example is if an employee in Orlando is injured while operating a crane, Workers' Compensation will cover the medical bills and lost wages, but not the cost of repairing the crane.
Do General Contractors in Florida Need Workers' Compensation?
In Florida, workers' compensation is generally required once you have 4 or more employees. This means that if you have a small team of employees, you may not be required to carry Workers' Compensation. However, if you have a larger team, you will need to carry this coverage to avoid fines and penalties. Going without Workers' Compensation can result in costly lawsuits and financial losses, as seen in the case of the general contractor in Jacksonville who had to pay $150,000 out of pocket.
A Real Workers' Compensation Claim a General Contractor Could Face
A general contractor in Miami recently faced a $120,000 claim when an employee was injured on the job. The employee was working on a construction site when they fell from a scaffold and broke their arm. The contractor's Workers' Compensation insurance covered the medical bills and lost wages, totaling $100,000. The contractor only had to pay the deductible, avoiding a significant financial loss. This claim highlights the importance of carrying Workers' Compensation insurance in Florida, where the risk of employee injuries is high due to the state's litigious environment and catastrophic weather events.
What Workers' Compensation Costs for General Contractors in Florida
The estimated premium for Workers' Compensation insurance in Florida is $65-$240/month, varying based on revenue, payroll, and coverage limits. For example, a general contractor in Tampa with a revenue of $1 million and a payroll of $500,000 may pay a premium of $150/month. However, if the contractor has a history of claims or operates in a high-risk area, the premium may be higher. Factors such as hurricane season, which creates catastrophic wind, flood, and business interruption risk, can also impact the premium. To lower their premium, general contractors in Florida can implement safety measures, such as regular training and equipment maintenance.
How to Get Workers' Compensation in Florida
To get Workers' Compensation insurance in Florida, general contractors should gather their revenue, payroll, and contract limit requirements. They should also research different insurance providers and compare quotes to find the best rate. In Jacksonville, for example, general contractors can work with a licensed insurance agent to find a policy that meets their needs. When comparing quotes, contractors should consider factors such as coverage limits, deductibles, and claims history. To get started, general contractors in Florida should have their revenue, payroll, and contract limit requirements ready and compare Workers' Compensation quotes today.
Frequently asked questions
Will my Workers' Compensation premium jump after one claim?＋
Yes, it may increase. The amount of the increase depends on the severity of the claim and the contractor's claims history. For example, if the claim is severe and the contractor has a history of claims, the premium may increase significantly. However, if the claim is minor and the contractor has a clean claims history, the premium may not increase as much. Contractors can work with their insurance agent to understand how claims will impact their premium and to implement safety measures to reduce the risk of future claims.
Can I get a COI same-day for a client?＋
Yes, it is possible. Many insurance providers offer same-day certificates of insurance (COIs) for general contractors in Florida. Contractors should work with their insurance agent to ensure that they can provide a COI quickly, usually within 24 hours. This is especially important for contractors who need to provide proof of insurance to clients or lenders on short notice. Some insurance providers may also offer online platforms for generating COIs, making it easier for contractors to access the documents they need.
Does a sole proprietor need Workers' Compensation?＋
No, not typically. In Florida, sole proprietors are not required to carry Workers' Compensation insurance unless they have employees. However, sole proprietors may still want to consider carrying Workers' Compensation insurance to protect themselves in case of an injury. This is especially important for sole proprietors who work in high-risk industries, such as construction. Sole proprietors should consult with a licensed insurance agent to determine their insurance needs and to explore options for protecting themselves and their business.
What is not covered by Workers' Compensation?＋
Workers' Compensation does not cover damages to equipment or property, nor does it cover injuries that occur outside of work. For example, if an employee is injured while commuting to work, Workers' Compensation will not cover the claim. Similarly, if an employee is injured while working on a personal project, Workers' Compensation will not cover the claim. Contractors should understand what is and is not covered by their Workers' Compensation policy to ensure that they have the right coverage for their business.
Can I cancel my Workers' Compensation policy at any time?＋
Yes, but there may be penalties. Contractors should review their policy carefully before canceling, as there may be fees associated with early termination. Additionally, canceling a Workers' Compensation policy can leave a contractor vulnerable to lawsuits and financial losses if an employee is injured on the job. Contractors should work with their insurance agent to understand their options and to ensure that they have the right coverage for their business. It is generally recommended that contractors do not cancel their Workers' Compensation policy unless they are certain that they will not need it in the future.
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Other coverages general contractors in Florida should know
This article is for general educational purposes and is not insurance or legal advice. Coverage requirements and pricing in Florida change over time and vary by business. Verify current rules with the Florida Department of Insurance and a licensed agent before purchasing a policy.