May 6, 2021 | Legal Alerts, Newsletters - 2021
Filing for Workers’ Compensation Exemption in Florida
Workers’ compensation is a type of insurance that protects employees if they are injured on the job and limits the liability exposure of the businesses that employ them. The insurance provides medical benefits and wage replacement for the employee depending on the nature of their injuries while also protecting the employer from lawsuits related to the incident that caused the injury at work. While workers’ compensation can be considered an essential benefit for employees, many business officers find they do not require the same protection. Those who work in administrative and/or management roles may have a significantly lower risk of sustaining a work-related injury, making workers’ compensation coverage unnecessary. Because insurance providers use a business’ total payroll to calculate insurance premiums, removing an officer’s salary can reduce insurance expenses. To do this, the officer needs to file for a workers’ compensation exemption. Exemptions can make it easier for a business to meet Florida’s workers’ compensation requirements while maintaining a reasonable profit margin.