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Workers' Compensation

Workers’ compensation insurance protects employers from claims resulting from injuries to employees. It protects your business from lawsuits and provides employees with compensation for on-the-job injuries.

 

By law, most employers are required to provide coverage for lost wages and medical bills incurred as a result of on-the-job accidents or illnesses. For many businesses, workers comp coverage is the largest part of its insurance expense.

Failure To Obtain Workers' Compensation Coverage

If an employer fails to obtain required coverage and an accident occurs, the injured employee either file a lawsuit against the employer in civil court or file a claim against the state workers' compensation system. Monetary exposure to a suit in civil court can be extremely significant to the employer. Stop-work orders and fines can be levied in addition to injunction and assessments against the employer. Employers who try and circumvent the law by going "naked" may also expose their personal assets and other business assets as well.

 

Determining Premium Amounts

There are three criteria which the insurance companies generally use to determine the payment of premiums. These are (1) the payroll; (2) the employer classification; and (3) the experience record and number of accidents and severity of injuries included for this employer.

 

The first element considered is the payroll and these are determined in blocks of $100 of payroll sums. The second consideration is how an employer will be classified into different categories by industry type. Each classification is designated to pay a certain amount of workers' compensation premiums per $100 block of payroll. Roofers who are at a high exposure to injuries will have a higher experience factor than office personnel who have a low exposure to injuries.

 

The last consideration is what is known in the industry as the "experience modification factor" or "experienced mod" or simply the "mod." In determining the experience mod, the individual employer is compared with other employers within the classification based upon the frequency of accidents and severity of injuries. The more accidents an employer has had in the past, the higher the modification rating.

 

The state of Florida requires $10,000 in audited premium subject to experience rating in the most recent two years of the experience period OR an average of $5,000 in the overall experience period.

 

For More Info See:

ABCs of Experience Rating

Workers' Comp System Guide

man slipping and falling silhouette icon

Workers' Compensation

Workers’ compensation insurance protects employers from claims resulting from injuries to employees. It protects your business from lawsuits and provides employees with compensation for on-the-job injuries.

 

By law, most employers are required to provide coverage for lost wages and medical bills incurred as a result of on-the-job accidents or illnesses. For many businesses, workers comp coverage is the largest part of its insurance expense.

Failure To Obtain Workers' Compensation Coverage

If an employer fails to obtain required coverage and an accident occurs, the injured employee either file a lawsuit against the employer in civil court or file a claim against the state workers' compensation system. Monetary exposure to a suit in civil court can be extremely significant to the employer. Stop-work orders and fines can be levied in addition to injunction and assessments against the employer. Employers who try and circumvent the law by going "naked" may also expose their personal assets and other business assets as well.

 

Determining Premium Amounts

There are three criteria which the insurance companies generally use to determine the payment of premiums. These are (1) the payroll; (2) the employer classification; and (3) the experience record and number of accidents and severity of injuries included for this employer.

 

The first element considered is the payroll and these are determined in blocks of $100 of payroll sums. The second consideration is how an employer will be classified into different categories by industry type. Each classification is designated to pay a certain amount of workers' compensation premiums per $100 block of payroll. Roofers who are at a high exposure to injuries will have a higher experience factor than office personnel who have a low exposure to injuries.

 

The last consideration is what is known in the industry as the "experience modification factor" or "experienced mod" or simply the "mod." In determining the experience mod, the individual employer is compared with other employers within the classification based upon the frequency of accidents and severity of injuries. The more accidents an employer has had in the past, the higher the modification rating.

 

The state of Florida requires $10,000 in audited premium subject to experience rating in the most recent two years of the experience period OR an average of $5,000 in the overall experience period.

 

For More Info See:

ABCs of Experience Rating

Workers' Comp System Guide