Workers Compensation and Small Businesses

Workers Compensation and Small Businesses

Orlando, FL – Workers compensation insurance is a two-way advantage that binds the company owners and their respective workers. It is a package of comprehensive and specific benefits to both of them. The employees will have their medical and rehabilitation expenses covered as well as receiving a percentage of their wages when out of work because of injuries or illness sustained on business premises or when working on the business operations. On the other hand, the employers can enjoy suing any employee for negligence on job.

It comes hardly as a surprise that even small entrepreneurship should get workers compensation insurance to avoid the financial ruin that they will otherwise fall into. The law allows them a waiver if they have the criteria wherein the business is a sole owner, the business has fewer numbers of employees than the minimum number required for coverage, or the employee is an immediate family member of the business owner. The size is not an issue in some specific industries of a high-risk nature such as construction. This insurance can be viewed as an investment since it ensures the safety and well-being not only of the employees but of your business too.

Another advantage of workers’ compensation insurance is that customers can feel secure enough to do business with you. Plus, you do not have to face the state-levied penalties for not carrying one nor do you have to pay for the employee benefits yourself.

The Cost of Workers Compensation

The amount that you need to pay for good and valid insurance is determined by the risk classification of the business type, the degree of coverage and the options that you have included. The risk classification factor is judged by the severity of the injury and the frequency of injuries at work. This decides the amount of money that the state assigns to the classification for calculating the rate, however, they are subject to change according to the history of your business’ safety and whether or not you have health insurance coverage among other factors.

Secondly, the different alternatives in the compensation insurance consists of:

  1. The coverage for illness and injury as dictated by the state
  2. The percentage of reimbursement for lost wages
  3. The reimbursement for funeral expenses, plus the financial assistance to the dependents if the employee died on work-related duty
  4. The coverage for employees injured out of your business’ home state
  5. The “part two” coverage for employers to be provided with money should their employee make a false claim of injury or illness due to their workplace.

When you are a small business that is not exempted based on proof to remain solvent in a legal claim situation, the three major ways you could get the workers compensation insurance are:

  1. by purchasing it through a private company only for your business,
  2. through an insurance pool along with other businesses, or
  3. by purchasing it through the state.


You may like to consider taking qualified measures to minimize risk at your workplace to make injuries an unlikely possibility. Conduct research on the trends of workplace injuries so you may avoid them. If you can afford it, supply your workers with the recommended safety gear so that accidents can be prevented. And, with an eye on good physical conditions such as maintaining your wiring and your carpeting for the sake of appearance, the office space can be kept hazard-free.

Workers Compensation in Florida

Although there are similarities among the compensation systems of the various jurisdictions, there are differences too. The state of Florida requires small business employers to have worker’s compensation insurance when they have at least four employees who are working either full-time or part-time in an industry other than construction. The corporate officer who is exempted will not count as an employee.

The Vaughan Law group is one of the experienced names in this profession. A legal consultation with the right workers compensation attorney in Orlando, FL, is the best thing you can do for your small business.

Orlando Workers Compensation Attorney Contact Information

Contact Vaughan Law Group’s Orlando Workers Compensation Attorneys today for your free initial consultation. You can contact Vaughan Law Group at (407) 434-0074.