Worker’s Comp Insurance is Required for Miami Businesses

If you’re thinking of starting any kind of business in Miami, worker’s compensation insurance is a must. Not only is it required by law, but having proper coverage in the event of an accident will ensure that you can fulfill your financial obligation to provide employee compensation for injuries, medical bills and time away from work.

Who’s Covered?

It’s a commonly held misconception that worker’s comp automatically covers all employees. In some states, business owners and commissioned salespeople may be excluded, but you may be required to extend your worker’s comp insurance to include any contractors or subcontractors who aren’t covered independently. Knowing the exact terms of your worker’s comp insurance policy and coverage is vital, because if you mistakenly assume you’re not liable and it turns out you are, you’ll be getting a nasty budgeting surprise in the form of injury claims and legal fees. When working with contractors and subcontractors, it’s a good rule of thumb not to work with anyone who can’t provide proof of Miami worker’s comp insurance.

Coverage Cost

The cost of premiums for worker’s comp insurance differs by state, but no matter where your business is located, commercial insurance companies will analyze the risk involved with your business, then factor in the number of people you employ, and how many of your employees have sustained on the job injuries in the past. One important point to remember about paying for workers comp is that your employees will not be contributing to worker’s comp premiums. Unlike social security and unemployment, employers are solely responsible for all worker’s comp insurance costs.

How to Buy

Although several states require that business owners purchase worker’s comp insurance through a state operated fund, in most states, you will purchase your worker’s comp insurance directly from a commercial insurance agency, or through an insurance brokerage company like American Insurance Brokers. Business owners often assume that a Miami insurance broker performs the same job as an insurance agent, but in reality, they are very different. The main difference is that insurance agents work for an insurance company, while insurance brokers work for you. Their in-depth knowledge and skill in dealing with insurance companies is invaluable in contracting a new policy or navigating an old one.