The state of Florida requires every employer to cover the workers’ compensation of their employees. However, the coverage requirement for an employee may differ from one employer to another. For example, it depends on the number of employees, type of industry, and entity organization.
Want to get more insight into how much your company is liable to pay as workers’ compensation? What if one does not meet it? Read along to find out more on this!
How Much Does a Trucking Business Have to Pay as Workers’ Compensation?
A business involved in a trucking operation must protect its employees from injuries and employers from a lawsuit by covering them under workers’ compensation insurance. According to the law, the minimum requirement is $ 100,000 per occurrence, $ 100,000 per occurrence by disease, and $ 500,000 aggregate.
However, this rate may vary depending on factors like –
- Employee’s payroll
- Location of business
- Industry and its risk factors
- Employee number
- Claim history
- Coverage limit
Who Gets Coverage under Workers’ Compensation?
If a business has four or more employees, it is mandatory to get workers’ compensation insurance. This insurance will cover the medical and hospital bills of the employees. In addition, it pays for temporary total disability costs, ambulance costs, and permanent disability. However, the truck driver must have got injured due to the following reasons only:
- Injured while unloading or loading freight
- Got wounded in an accident
- Slipped and got injured while entering or getting out of the truck
- Got hurt when carrying roadside repairs of the truck
What Happens in Case of the Non-Compliance with Workers’ Compensation Law?
Employers in the state of Florida who do not provide workers’ compensation to their employees attract several civil penalties. The most immediate one is that the company must stop its operation immediately until it complies with legal rules and pays the required penalties.
This penalty charge usually amounts to double the insurance premium payable by the employer for the previous two years. In addition, if the employer does not comply with this stop-work order, he or she may also be liable for criminal charges.
So, it is paramount for an employer to bear this cost. However, one can always reduce the burden by controlling the premium amount, incorporating cost-saving measures, and avoiding accidents.
How Can Companies Reduce Workers’ Compensation Cost?
The following are some practical ways that companies can adopt to reduce their workers’ compensation costs:
- Introducing Safety Program
When companies take measures to avoid accidents even before they occur, it reduces their workers’ compensation cost-effectively. The best way to do so is by introducing a safety program to keep the employees safe. One can also take safety training at regular intervals for the purpose.
- Implementing Return-To-Work Program
The claim becomes costlier day by day until the worker comes back to work. So, to save the company money, one must implement a return-to-work program either by allowing them to cover light-duty hours or work on a part-time basis. This also lowers the risk that employees might never return to work.
- Partnering with a PEO
To help reduce the cost taking the help of a PEO can be an ideal decision. A PEO assists by maintaining a lower number of claims, looking after the company’s safety measures, and managing the worker code to reduce workers’ compensation insurance premiums.
Apart from reducing workers’ compensation costs, there are also other managerial areas in which a trusted PEO can help you. So, if you are looking for professional assistance in maintaining your company’s payroll, worker management system, cost control, compliance with HR terms, and assistance in employee recruitment, contact us. To increase your knowledge about what we do, you can also scroll through our blog section.
Reference Links:
https://www.commercialtruckinsurancehq.com/workers-compensation-for-truckers
https://www.insureon.com/small-business-insurance/workers-compensation/florida
https://www.barbeejackson.com/workers-comp/florida-workers-comp-trucking/
https://www.findlaw.com/state/florida-law/florida-workers-compensation-laws.html
https://www.cornerstonepeo.com/post/how-companies-can-reduce-workers-comp-costs
Contact Us
Find out if a PEO is the right solution for your business.
Fill out the form below and we will contact you to schedule a chat.
