While workers' compensation varies from state-to-state, it is still crucial for companies across all industries to be aware of their location's requirements for the coverage. Otherwise, hefty fines or expensive legal fees could follow, should an employee bring a business to court.
In Florida, investigators with the Department of Financial Services' Division of Workers' Compensation Bureau of Compliance and Division of Insurance Fraud randomly visited construction sites. The department saw 375 construction sites, contacting a total of 770 employers in a two-day sweep.
According to a press release, nearly one in ten companies failed to carry the required workers' compensation insurance. Specifically, 70 citations were issued to construction companies and other businesses.
Chief Financial Officer Jeff Atwater said in the release that the goal of the sweep was to ensure the safety of Florida's workforce. The construction industry especially faces potentially dangerous situations on a daily basis.
"Construction companies that don't carry the required workers' comp coverage put their employees at great risk and, through gaming the system, are able to outbid responsible companies that play by the rules," Atwater said.
In Florida, the law states that organizations in the construction industry are required to obtain workers' compensation coverage when they employ one or more employees, including the owner. Non-construction businesses must have such policies when there are four or more workers, with the owner being exempt.
Regardless of a business' location, partnering with commercial insurance specialists is well-advised. Especially for contractors or companies that specialize in construction, having a comprehensive policy will not only protect employees against possible injury, it guarantees that a company will not face fines.
Commercial contractors insurance and workers' compensation policies need to be catered to individual organizational needs and working with professionals will help owners acquire the necessary coverage.