Starting a new business is a scary feat of its own. There are taxes, licenses, deposits, loans, and so many other legal matters to worry about. When you add employees to the mix, workers compensation insurance can be really intimidating if you don’t know where to start. Your insurance agent can really be your greatest ally in bringing down your rates and even getting you money back through various dividend plans! (Yes, it’s possible) Before entering the office, there are some things you should know:
-Florida workers compensation insurance is required if you have four or more employees and are in a non-construction business. If you’re in the construction realm you MUST have it even if you only have one employee. So if it’s just you and your spouse making crafts and selling them on ETSY there’s no need to purchase it. If your aunt, uncle, mom, and dad are also on your payroll for crocheting, gluing, and painting you MUST HAVE it!
-There are different classes of businesses and with each class comes a different rate and premium set by the state of Florida and the National Council on Compensation Insurers, Inc. If you employ a NASCAR pit crew your rates will be higher than a mail-sorting temp agency. (Even though we all know paper cuts can be brutal!)
-There are different routes of payment. If you have a good idea of how much your business will make you can put down a deposit and then set-up a monthly payment. In some policies you can put down only $200 and pay monthly according to your exact payroll.
– Multi-policy discounts are made to help you not hurt you. However don’t go overboard; if you’re not running a jet-ski rental do you really need that commercial watercraft insurance?
-If you have a dividend plan you can get money back at the end of the year if there are minimal claims. MAKE SURE YOU REQUEST IT! Your insurance agent has to negotiate this with your carrier.
Above all else just make sure that you feel comfortable with your coverage. There’s already enough for you to worry about on a day-to-day basis and insurance is there to lessen that load. Paying for a plan that makes sense for you and your business will be well worth it when the time comes for you to use it.