Workers Comp Presentation Notes August 2012

Before you let anyone work on your home or business - check their Workers' Comp policy here:

http://www.myfloridacfo.com/wc/

** Click on "Proof of Coverage Database".

What is Workers' Compensation Insurance?

Every Employer Shall Secure the Payment of Compensation Under this Chapter

* Provides benefits for injured workers
** Medical Benefits related to the injury
** 66.66% of Employee's average weekly wage

* Exclusiveness of Liability - s.440.11, F.S.
** Liability of the Employer is Exclusive -- Protects the Employer who HAS WC insurance
** Unless the Employer Fails to Secure Coverage

Who needs Workers' Compensation Coverage?

Every employer working in Florida who has:

* Construction Industry Employer - one or more employees; including non-exempt business owners
* Non-construction industry employer - four or more employees; including non-exempt corporate officers
* Agricultural employer - six regular employees or twelve or more season employees
* Corporation - Corporate officers are always employees

Who are employees?

Employees do not include:

* Non-construction sole proprietor or partners
* Non-construction independent contractor
* Exempt corporate offices
* Volunteers
* Maritime Workers covered by Jones Act or Longshore & Harborworkers Act (covers people working navigable waterways)

Exemptions

* An exemption allows the officer of a corporation both construction & non-construction to exempt him/herself from being included in the court of employees.
* If an injury occurs, no WC benefits are provided to the exempt person.
* If there are other employees, there must be WC Insurance Coverage for them.

Construction Industry:

* Corporate Offices and LLC members
* Active with Dept of State, Division of Corporations
* Corporate Officer must be listed & active with DOS
* Must own at least 10% of the business
* Business name must match CBPR licenses
* $50 filing fee
* Good for 2 years
* Limited to 3 exempt persons

How to get Workers' Compensation Coverage?

* Purchase a work-comp plify
** Authorized carrier
** W.C. Joint Underwriting Association
* Become a member of a self-insured fund
* Contract with a Professional Employer Organization (PEO) (aka Employee Leasing)
* Become individually self-insured

Premium is made up of:

Annual estimated payroll (at application time)
TIMES
rate for work performed
TIMES
experience modification factor (or EM Rate)
MINUS
Discounts (Safety 2% & Drug Free Workplace 5%)

Historical Rate Changes

Cumulative 64.7% Decrease since October 2003

Contractor - Subcontractor Responsibilities

* Contractor is responsible for securing the payment of compensation for all of its uninsured subcontractors and their employees.
* Contractor is required to obtain evidence of subcontractors' Workers' Compensation insurance for its employees

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