Workers' Compensation Insurance

What is Workers' Compensation Insurance

Protection for you AND your employees!

Workers' compensation insurance, sometimes called workman’s compensation insurance, workers’ liability insurance or workers’ comp insurance, covers your employees’ medical expenses and at least some portion of their lost wages if they are injured on the job.

Most states require companies to purchase workers' compensation insurance for their employees. Because workers’ comp insurance is mandated by law, small-business owners often think that it is just one more overhead expense that provides little benefit. But good workers' compensation insurance is actually an affordable benefit that protects both you and your employees.

Frequently Asked Questions about Workers' Comp?

Who needs Workers' Compensation coverage?

• 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 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.

Does the injured worker pay any part of my workers' compensation insurance premium?

The law is very specific on this point. It is the employer's responsibility to pay the entire premium for workers' compensation insurance coverage.

What kinds of employee injuries are covered?

The law covers all accidental injuries and occupational diseases arising out of and in the course and scope of employment. This includes diseases or infections resulting from such injuries. The law also covers death resulting from such injuries within specified periods of time. Even if you do not think an injury is covered, you must still file the First Report of Injury or Illness (DWC-1) with your insurance carrier for determination of responsibility within 7 days of your first knowledge of the accident/injury.

What injuries are not covered?

The law does not provide compensation for the following conditions: a mental or nervous injury due to stress, fright, or excitement; a work related condition that causes an employee to have fear or dislike for another individual because of the individual's race, color, religion, sex, national origin, age, or handicap; "pain and suffering" has never been compensable in Florida, nor is it compensable in any other state. The employer may not sue an injured worker for causing a catastrophe nor can the injured worker sue the employer for their injury. This trade-off makes it possible for injured workers to receive immediate medical care, at no cost to the injured worker, without any consideration for who was at fault, the employer or the employee. In civil law, negligence must be established through litigation before any compensation is awarded.

Compensation will not be paid in several other instances:

if the injury is caused by the employee's willful intention to injure or kill himself or another; · if the injury is caused primarily because the employee is intoxicated or under the influence of drugs; · if the injury or death of the employee is covered by the Federal Employer's Liability Act, the Longshore and Harbor Workers' Compensation Act, or the Jones Act (if the injured worker is a "seaman" or member of a crew).

As a small business owner, I fail to see how I can be sued by an injured worker if I provide all the necessary care, light duty work, and offer to retrain the employee.

Under the provisions of Chapter 440, Florida Statutes, an injured worker has two years from the date of the accident to file a petition for benefits with the Division of Administrative Hearings. If an employer is providing benefits and return to work options, that should be sufficient to meet the ultimate goal of returning an injured worker to gainful employment. However, an employer/carrier's definition of "necessary care" and that of an injured worker may differ. When that happens, the injured worker has no remedy except to file a petition for benefits and have a judge of compensation claims determine whether the benefits that are being provided are sufficient, or if additional benefits not being provided are required by Florida law. If the employer is providing benefits, all expenditures must be reported to the employer's workers' compensation insurance carrier for statistical purposes.

Will becoming a drug-free workplace save me money on my insurance premiums?

If you implement a drug-free workplace program in accordance with the criteria set forth in s.440.102, Florida Statutes, you may be eligible for a 5 percent premium credit from your insurance carrier to your workers' compensation insurance premium. In addition to the premium credit, having a Workers' Compensation Drug-Free Workplace Program may make your workplace safer, resulting in fewer accidents, which may reduce your workers' compensation costs.

Am I required to become a carrier certified drug-free workplace?

Becoming a carrier certified drug-free workplace is voluntary. However, without the certification, you would not be eligible for any of the benefits provided under this program.

Under the Workers' Compensation Drug-Free Workplace Program, can I conduct random drug testing of my employees?

In addition to the situations in which testing is mandatory, the law does not prohibit a private employer from conducting random testing or any other lawful testing of employees. A public employer may institute random testing of employees in "safety sensitive" or "special risk" occupations.

What if an employee refuses to take a drug test?

If an injured worker refuses to submit to a test for drugs or alcohol, the employee may forfeit eligibility for medical and indemnity benefits. If an employee or job applicant refuses to submit to a drug test, the employer is permitted to discharge or discipline the employee or may refuse to hire the applicant (if specified in the written Drug-Free Workplace Policy), since, by law, refusal to submit to a drug test is presumed to be a positive test result. Who pays for the drug test? The employer is responsible for payment of all drug tests they may require. However, if an employee wishes to have the specimen re-tested at a laboratory certified by the Agency for Healthcare Administration (AHCA), it will be at the employee's expense. If the workers' compensation insurance carrier uses a positive test result to determine the compensability of a claim, the carrier would be responsible to cover the costs of the test.