Workers Compensation Insurance in Florida - How Much is it?

Worker’s compensation provides legal protection to employees who got injured or suffered work-related illnesses. When the claim is filed, the worker’s compensation insurance will cover all the medical and rehabilitation expenses. If the employee or the worker cannot work temporarily or permanently, the workers compensation coverage will pay for the lost wages.

What is  Workers Compensation Insurance Florida?

Workers compensation insurance in the U.S. has specific legislation, and each state has different requirements. The state law requires the worker’s compensation insurance Florida to businesses with four or more employees. Other small businesses may be exempt from the workers comp laws, and employees who are injured may find another avenue for medical care or lost earnings. But employers who are subject to Florida workers’ compensation laws need to carry a current worker’s comp policy.

The employers or businesses purchase the worker’s comp policy coverage to protect their employees for any job-related injury or illness. A business that carries this policy will have their employees get compensated for the damages they incur while doing their job, regardless of who is at fault. This will cover employers from injury lawsuits filed by their employees.

The Office of Insurance Regulation (OIR) controls the rates, forms, and financial stability for workers’ compensation insurers while providing them essential oversight. It aims to keep a competitive and robust market for those who are seeking insurance protection.

In Florida, the Division of Workers Compensation under the Department of Financial Services is the primary regulator of this policy and makes sure that employees receive the right benefits under the workers comp coverage, which includes the medical, disability, or health benefits. They also provide education and resources to the insurance carriers on assessment rates, handling claims, annual maximum comp rates, electronic data exchange or EDI, and other regulated activities.

There are more than 250 workers comp insurance providers in the state of Florida. The largest insurer is a private market insurer instead of a state-create residual market party.

Who needs workers’ comp insurance in Florida?

Florida workers compensation law requires every business with four and more employees to carry workers’ compensation insurance. These companies need to know the requirements for this type of coverage. Every construction business in Florida should also have this coverage for their employees.

Workers compensations is a vital component of small business insurance since it can cover medical expenses, recovery costs, and missed wages if the employee is injured at work. It can also cover funeral costs, and the employee’s family can receive benefits in case of death on the job. By requiring workers comp insurance, Florida officials offer businesses an incentive to keep employees safe and reduce risks of lawsuits against business owners. 

How Much Does Workers’ Compensation Insurance Cost in Florida?

Workers compensation costs are different in every state, at the same time, concerning those who need it. An estimated cost for workers compensation in Florida is around $1.43 per $100 covered in payroll. However, this insurance policy can be more expensive than others because other jobs have different risk factors. Those with a higher risk of physical injury have higher insurance premiums than those who are less exposed.

How does workers’ comp work in Florida? 

Each state has its own requirements when it comes to workers compensation law. However, they all follow a general concept as to how it works.

If an employee is injured on the job, the workers’ comp insurance will cover the costs incurred. These costs include the hospital or medical bills, ambulance, lost wages, and disability payments. After an injury or illness, the employee can file a claim against the employer’s work comp insurance policy. When the insurance company has accepted the claims, the worker could receive funds to pay for the medical expenses and disability payment plan.

Do you need workers’ compensation if you are self-employed? 

In Florida, whether self-employed or not, an employed person is required to have workers compensation insurance depends on the nature of work being operated. A self-employed worker in the construction industry is required to carry workers’ comp coverage in Florida. But if you are in an industry with a low risk of physical injury and have no employees, you can decide if you will have to get covered.

Death benefits under Florida workers’ compensation law

When the employee dies due to a work-related event within one year from the date of the accident or the worker suffered disability for five years, the employee’s family will receive death benefits. The family is entitled to receive funeral expenses up to $7,500, an education benefit, a $150,000 in compensation benefits to dependents, which is usually paid at up to 66.67% of the worker’s weekly salary.

Workers’ comp settlements in Florida

In some cases, the employee will try to negotiate for a larger workers comp settlement. The employer should get involved in the discussion to minimize liability in a lawsuit if one surfaces. With his or her lawyer, the employee will be asked to calculate the total amount of the anticipated expenses before the insurance company will settle the claims. They will not pay a claim simply based on the calculations. The insurance company and the employee’s attorney will have to discuss the settlement more and have to agreeable terms.

How to Buy Workers’ Comp in Florida

Florida has a private market where businesses can buy a worker’s compensation policy from any insurance carrier, broker, or insurance agency. These entities must be licensed to write the policy in the state.

Another way to purchase the compensation worker insurance is to contract with the employee’s leasing company or professional employer organization (PEO). The company will be the worker’s legal employer, which will provide a workmen comp policy in exchange for a fee.

But, private insurance companies’ declined policies can be covered by the state fund, which is managed by the Florida Workers Compensation Joint Underwriting Association. 

Florida Workers Compensation Coverage Requirements

Workers’ compensation coverage requirements for employers are based on the industry, the number of employees, and organization type. The following information is used to determine the coverage requirements for a specific employer, as provided by the Bureau of Compliance.

Construction Industry. In this industry, one or more employees, including the business owner who are corporate officers or LLC members.

Non-Construction Industry. Four or more non-construction business employees, including the business owner(s), the corporate officers, or LLC members. Sole proprietors or partners are considered employees only if they want to be included in the business workers compensation coverage and file a form.

Agricultural Industry. In the agricultural field, six regular employees or twelve seasonal workers are covered. Seasonal workers should have  30 days of work during a season but should not exceed a total of 45 days in a calendar year.

Out of State employers should notify their insurance provider that they are working in Florida. If the employer is not providing insurance, the out of state employer will be required to obtain Florida workers’ compensation insurance.

Contractors should ensure that all subcontractors are protected with workers comp coverage before they start their project.

Exemptions for Non-Construction Companies

1. Sole Proprietorships or Partnerships

Sole proprietors or partners in Partnership are not considered employees, automatically exempting them from getting covered. They can be included for workers’ compensation policy only if they file a form.

2. Corporations

Corporate officers are considered employees and are included for worker’s compensation coverage if they did not file for and receive an exemption.

An exemption can be canceled by filing form DWC 250-R with the DWC. 

3. Limited Liability Companies (LLC) 

Owners or managing members of non-construction LLCs are recognized employees and will only be exempted if they file for and receive an exemption from the Division of Workers Compensation. About 10% of the LLC members are eligible for an exemption, or up to 10 LLC owners may file to be exempt.

An exemption is free and is renewable for two years to keep it valid. An exemption can be revoked by filing form DWC 250-R with the DWC (rights reserved). 


Businesses in Florida must carry worker’s compensation insurance because it is required by law, but it protects the business from financial loss if an accident arises in the workplace. Purchasing this policy will enable employers and business owners to file insurance claims when a worker is injured on the job site. The insurance carrier will compensate the employee for medical bills and lost wages. In case an employee files a lawsuit for additional damages, the employer’s legal expenses are also covered by this policy.

Each state has its own legislation and requirements when it comes to worker’s compensation insurance. Florida workers’ compensation rates are relatively lower than the average rate of other U.S. states. However, to keep the costs low is to keep the workplace safe and avoid claims. You can also ask for discounts when you are evaluating your quote.

What are Covered By Florida Tow Truck Insurance?

The law requires commercial auto and tow truck owners and operators to have minimum liability coverage. As the company owner, you carry the responsibility for the safety of those working for you. You must ensure that they are protected. As much as possible, you should pursue other types of insurance for tow trucks coverage beyond the minimum required to protect your business and personnel against claims. 

You can ask for referrals to find a reliable and knowledgeable insurance agent you can work with. They must be able to explain to you the refinements of a Florida tow truck insurance policy especially those that your particular situation will need. Remember that owners can be held responsible if the company is the cause of physical damage or accident if the car you’ve towed is damaged, and for other instances. 

Your tow truck instance policy should have these specifics:

  • Liability Insurance – it provides coverage for bodily injury or property damage caused by your company to others. You need somewhere from $25,000 to $50,000 coverage in Florida to include pay legal fees which you may also be involved in the claims. 
  • Medical Payment Coverage – if your personnel or you are injured at work, this will cover the medical bills accrued. It is an important Florida tow truck insurance coverage. 
  • Physical Damage Coverage – This coverage is for truck damages. It doesn’t matter who is at fault, with this type of coverage, damages on your vehicle will be covered under this. 
  • Comprehensive Policies – it would also help if you have a comprehensive policy that will provide insurance for other damages not resulting from collisions. It may include events such as fires, natural disasters, or vandalism. 
  • Uninsured and underinsured motorist protection – not everyone is a responsible motorist. Get your company and your personnel protected against other motorists who are not insured or underinsured. 
  • Garage service protection – this type of coverage handles losses due to collisions, theft, fire, or vandalism in a covered garage location. 
  • On-hook insurance – this towing insurance is essential for any tow truck company. In case a vehicle that gets damaged while you are towing it, this will provide coverage for it.  

Depending on the policy or tow truck insurance quotes you choose, the amount of coverage that your Florida towing insurance provides also varies. It will also take into account the deductible amount in relation to your insurance policy. It is crucial that you evaluate the risk surrounding your business, your risk tolerance, and your capacity to pay for damages when choosing a policy for your business. 

Costs of Florida Tow Truck Insurance 

Considering the expenditures and the limited cash flow of your towing business, can you still afford a Florida tow truck insurance? It is not the question that you ask yourself as the owner, rather, you should ask if you can afford to not get such valuable coverage for your business. Before you say it’s too expensive or you cannot afford it, you should first have your trucks, driving records, and your employees evaluated. Your area of operation, type of operation, and your business location are also factors in determining the costs of your insurance premiums.   

How to Find the Best Rates on Tow Truck Insurance Florida

There are thousands of insurance companies offering various tow truck insurance Florida in varying coverage. You can compare rates with several companies to determine which has the most suitable towing insurance plans for your business. Connect with a reliable agent to plan out the coverage essential for you and what your business needs to mitigate all the risks.  

Understanding Commercial Towing Insurance Florida Requirements

Starting a business in Florida does have a lot of gains and advantages. The state is ripe with opportunities and there is a market for almost all types of industries. The economy in this part of the country continuously booms at any time of the year. It is one of the reasons why many businessmen are interested in operating a small business in any of its cities. But before you pursue this endeavor, you must first understand the unique economic and commercial set up in this place. You might be surprised to know that there are some  

If you are thinking about starting up a business in the state of Florida, it’s important to understand the economic standing of the state before you set up shop. Furthermore, you should understand the rules and regulations regarding Florida tow truck insurance quotes and policies. Likewise, understanding the requirements and economic data itself can further help you decide whether it is best for you to start your commercial auto business here.

Tow truck insurance Florida and all other commercial truck insurance needs in the state are regulated by the Florida Office of Insurance Regulation. A worker’s compensation coverage is one of the mandated insurance that they impose on organizations with employees working hourly or salaried workers. On the other hand, those with less than three employees are not required legally to have it. 

Wrap Up

All kinds of businesses in Florida are required in some way to secure their properties and employees through commercial insurance. Tow truck companies face many risks in their daily operation thus it is only right to have the best possible coverage for the equipment, employee as well as third party liabilities. Browse through thousands of tow truck insurance quotes to find the best towing coverage for your business. Make sure that your insurance coverage is enough to protect your company from any eventualities, lawsuits, or claims. Consult with your insurance agent on the best tow truck insurance for your situation and your business. Your agent should be able to explain to you all the ins-and-outs of truck insurance quotes before you decide to pursue their offers.