Obtaining Insurance Coverage

Purchasing Insurance - In Florida, Workers' Compensation insurance is provided by private Insurance Carriers who are licensed by the Office of Insurance Regulation. Once insurance is obtained, the Employer is responsible for displaying the "Broken Arm" poster, which contains the name of the insurance carrier and telephone number, in a conspicuous location.

• To purchase insurance coverage, the Employer consults their business insurance agent.
• If the Employer needs to locate an insurance agent several agency associations are available.
  • Florida Association of Insurance Agents - FAIA
  • Latin American Association of Insurance Agencies
  • The Professional Insurance Agents of Florida - PIA of Florida
• For assistance with identifying carriers with active policies for specific class codes or job descriptions, see the Coverage Assistance Program (CAP).
• If the Insurance Agent cannot place coverage, the agent may make application to the Florida Workers' Compensation Joint Underwriters Association.

Employee Leasing is an arrangement whereby the Employer (client company) enters into a contract with an Employee Leasing Company who must be licensed by the Department of Business and Professional Regulation, Employee Leasing Licensing Board.

• The Client Company must report all of its workers and all of its payroll to the leasing company. The Client Company maintains hiring, supervisory, and safety responsibilities.
• The Client Company pays a fee to the Employee Leasing Company.
• Employee Leasing Company pays the workers and provides workers' compensation insurance coverage for each one.
• The Employee Leasing Company becomes the legal employer for each worker.

Commercial Self Insurance Funds, authorized by the Office of Insurance Regulation, pool and spread liabilities for Workers' Compensation Insurance among their members.

Self Insured Employers are permitted in Florida; however they are required to apply to the Division of Workers' Compensation and demonstrate the financial strength to ensure the timely payment of benefits.

Cost of Insurance is based upon the Employer's estimated annual payroll, at the beginning of the policy period, divided by 100, and multiplied by the rate for the type of work that the business performs. An Experience Modification Factor (or multiplier) is used to make an adjustment based upon the Employer's history of managing their Workers' Compensation claims. If the Employer meets the qualifications, a discount for Workplace Safety and Drug Free Workplace may also apply.