What is workers’ compensation?
Workers’ compensation is a major expense for most Florida businesses, and it is important for employers to understand their duties and responsibilities under Florida law. When workers’ compensation insurance is purchased as required by Florida law, business owners are protected from being sued (unless special circumstances exist) if one of their employees gets hurt or ill at the workplace. Under workers’ compensation, when an employee gets hurt on the job, the insurance company will pay all medical bills and partial wage replacement for the employee.
I'm looking for workers' comp coverage for my employees. Can you help me?
FUBA Workers’ Comp is the route chosen by many Florida businesses for their workers’ comp coverage, but we do not write directly to potential policyholders. You will need to contact an independent insurance agent who has been carefully selected and approved with FUBA Workers’ Comp, and have them submit an application on your behalf. Please visit our Request an Agent page to fill out the form or call us at 888-262-4483 and we can recommend one of our many approved agents throughout Florida.
If you have a preferred agency in mind, please include the agency’s name and address in the ‘Message’ section of the form and we can check to see if they are an approved agent with FUBA Workers’ Comp.
Who needs to obtain workers’ compensation coverage?
Businesses (except construction) with four or more employees, whether they are full-time and part-time. [Corporate officers count as employees unless the officer has been issued an exemption from workers’ compensation by the State of Florida.]
All construction industry businesses, unless the business owners have exemptions and there are no employees. Owners are included unless they specifically file for an exemption. (Please see below for more details on exemptions.)
Who can get an exemption?
Only the owners of businesses are allowed to be exempt. Employees are not allowed to exempt out of workers’ compensation coverage.
Exemptions cost $50 each and must be renewed every two years. Exemptions must be applied for online with the Division of Workers’ Compensation. Click here to apply for an exemption.
Corporations – A corporation involved in the construction industry can exempt up to three of its officers. Each officer must own at least 10% of the corporation’s stock.
LLCs – An LLC involved in the construction industry can exempt up to three of its owners (called “managing members”) and each must own at least 10% of the LLC.
Sole Proprietors and Partners – Sole proprietors and partners in the construction industry cannot exempt out of workers’ comp. Sole proprietors and partners must purchase workers’ comp coverage to comply with Florida law.
Exemptions for non-construction businesses are free and must be renewed every two years. Exemptions must be applied for online with the Division of Workers’ Compensation. Click here to apply for an exemption.
Corporations – Officers of a corporation are those people who own the corporation and hold an office on its Board of Directors. Corporate officers are subject to workers’ compensation unless they have a valid exemption on file with the State of Florida. Non-construction corporations can exempt all of their officers – there is no limit to the number of exemptions. There is no charge for an exemption for a corporate officer whose company is not construction-related.
LLCs – Since 2013, owners of non-construction LLCs (also called “members” or “managing members”) are subject to workers’ compensation unless they have a valid exemption on file with the State of Florida.
Sole Proprietors and Partners – Sole proprietors and partners are automatically excluded from workers’ compensation and do not have to get an exemption. If they wish to be covered by workers’ compensation, they must file form DWC 251 – Election of Coverage with the Division of Workers’ Compensation. If they want to go back to being excluded from workers’ compensation, they can file form DWC 251R – Revocation of Election of Coverage. You can download these forms from the Resources & Documents section of our website.
Making Policy Changes
I need to adjust the payroll for an employee on my policy. How do I go about doing this?
The first step is to call your agent. Your agent will need to complete a Monthly Change Sheet and email it to us at firstname.lastname@example.org. You will need to provide your agent with a copy of your latest RT-6 form or any other payroll documentation showing this adjustment.
I have moved my business location. Do I need to notify my workers’ compensation carrier and if so, how do I go about doing this?
Yes. You should immediately notify your agent of this change. Your agent will need to complete a Monthly Change Sheet and email it to us at email@example.com.
Can I get a Waiver of Subrogation?
We offer two types of waiver endorsements, “blanket” waivers or “specific” waivers. A blanket waiver of subrogation waives our rights to subrogate against ‘any person or organization for whom the named insured has agreed by written contract to furnish this waiver.’ A specific waiver of subrogation waives our rights to subrogate against a specific organization named in the schedule of the waiver endorsement.
The cost for a blanket waiver is $400 or 2% of premium (whichever is greater as determined at the time of audit) and the cost for a specific waiver is $200. The waiver fee must be collected and posted to the policy prior to issuing a waiver of subrogation endorsement. Your agent will need to submit an ACORD Monthly Change Sheet to request a waiver of subrogation for your policy.
Can I pay my invoice online?
Yes, you may visit www.FUBAworks.com to pay your monthly invoice online.
If my policy is cancelled for non-payment of premium, how can I get it reinstated?
If we do not receive your payment by the 15th, your workers’ compensation policy will be placed into cancellation and assessed a $25 late fee. After a cancellation notice has been issued, reinstatement of your policy is completely at our discretion and is neither automatic not guaranteed, even if we receive payment at a later date.
Coverage is only reinstated if our office sends you a Notice of Reinstatement. Making a payment does not automatically reinstate your policy. Remember that there is a 10-day window for policies that have cancelled for non-payment of premium to be considered for reinstatement.
What is the Terrorism Risk Insurance Act Premium charge on my invoice?
The Terrorism Risk Insurance Act (“TRIA”) of 2002 is a federal law passed in response to 9/11. It requires us to charge policyholders $.02 for each $100 of payroll. For workers’ compensation policies, this charge is mandatory; we cannot waive it. In other lines of insurance, policyholders may choose not to pay the TRIA premium, but there is no such flexibility in workers’ compensation.
The TRIA premium will be “trued up” at audit – in other words, it goes up or down as the policyholder’s payroll goes up or down.
What is the 'Expense Constant' charge on my invoice?
This premium is an administrative fee required by the National Council of Compensation Insurance (NCCI) and is charged by every carrier for each policy period regardless of premium size. The Expense Constant contributes to the recovery of expenses common to issuing, recording, and auditing a policy. This expense is charged at the inception of the policy and then annually at the renewal of your policy.
Why am I being audited?
Florida law requires us to perform audits on all policyholders. Your workers’ compensation premium is based upon the description of your operations and the estimated payroll you and your agent provided at the beginning of the policy period. Over the policy period, your payroll may have increased or decreased or your operations may have changed. The audit will allow us to evaluate the actual payroll and premium for the policy period. It will also allow us to evaluate whether you are appropriately classified according to your job descriptions.
My company just started doing business and I do not have any payroll. Do I still need an audit?
Yes. Even though your company may not have had any payroll, you still need to comply with the audit requirements. Please meet with the auditor and bring any and all pertinent financial documentation.
I was exempt for part or all of the policy period. Do I need to have my exemption(s) at the time of the audit?
Yes. Please have all valid exemptions for the policy period present at the time of the audit. Please note that if there was a lapse in your exemption, you will be charged premium for the payroll earned during that lapse.
Are there any minimums or maximums for corporate officers covered under a workers’ compensation policy?
Yes. If a corporate officer is covered under a workers’ compensation policy, he or she will be charged premium based upon the actual payroll, subject to a minimum payroll and a maximum (depending on when your policy was written) in the construction industry.
If you are a corporate officer in the non-construction industry, there is a higher minimum for corporate officers although the maximum is the same.
Will FUBA Workers’ Comp write coverage for a new business?
FUBA Workers’ Comp will consider a company that is new in business. A resume’ should be provided along with the submission to the Underwriting Department for review. There are some classes of businesses that require a minimum of three years of prior workers’ compensation coverage.
Will FUBA Workers’ Comp write coverage for a business with no prior workers’ comp policy?
FUBA Workers’ Comp will consider businesses with no prior workers’ compensation insurance in certain classes of business. However, the company must have at least three years of experience in the industry in which it is applying for workers’ compensation.