Before going any further, let’s answer the question, “What is workers’ compensation?”
Commonly referred to as workers’ comp, this type of insurance covers expenses that may arise because of a workplace accident or disease, although keep in mind that the injury sustained needs to be a ‘physical injury’, not purely mental or psychiatric, for example, medical bills, lost remuneration, rehabilitation fees, and disability payments. It also serves to preclude lawsuits against employers when a worker is injured.
In the State of Florida, employers with four or more full time employees are required to maintain Workers’ Compensation coverage. An exception to this law relates to the construction industry. Because this sector sees a significant number of workplace accidents and injuries, businesses in this industry are typically required to have coverage for every worker employed.
While some employers fund workers’ compensation, it is most underwritten by an insurance company.