When it comes to Florida business insurance, workers’ compensation exemptions is a topic that raises many questions. Who is exempt and who is not? The type of business you own determines who is able to file for an exemption and who is automatically exempt.
When it comes to workers’ compensation, the owners are not considered employees, and therefore, have the option to elect whether to be covered under workers’ compensation or to file for an exemption. Though it costs to include the owner in the policy, it is a safer plan. If the owner is not included in the policy and gets injured on the job, he or she will most likely have to pay out of pocket to cover their medical expenses. Some owners are under the misunderstanding that they would be covered under their general liability policy, but that policy does not cover employees or owners. Some owners also think that their personal medical insurance will cover them. However, most policies exclude on-the-job injuries. Because of this, workers’ compensation is most likely the only coverage available.
When it comes to a sole proprietor business, the owner is automatically exempt. If the owner chooses to revoke his or her exemption, payroll is based at $40,700 per year.
For limited liability companies, listed under a non-construction class code, a workers’ compensation policy is required if the business has four or more employees. If the owner takes a payroll, he or she is included on the workers’ compensation policy. If the owner does not take a payroll, he or she is excluded.
If the business is a corporation, listed under a non-construction class code, the owner can file for a workers’ compensation exemption. For a business listed under the non-construction class code, the minimum payroll is $400 per week and $20,800 per year.
If the business is incorporated (either LLC or a corporation) and listed under a construction class code, a workers’ compensation policy is required with one employee. An owner can elect to file for an exemption if he or she so chooses. Payroll is based at a minimum of $200 per week and $10,400 per year and has a maximum of $2,400 per week and $124,800 per year.
If you have anymore questions about our great Florida commercial insurance policies, contact Westgate-Jones Insurance Agency at 352-787-7548!