Florida Worker’s Compensation Advice Needed
Hello everyone,
As a new business owner, I’m navigating the requirements to work in specific marinas, and I’ve hit a roadblock with worker’s compensation. To operate there, I need to have workman’s comp coverage and be classified as a W2 employee, which means engaging a payroll company too.
I’ve received a quote of $175 per week for workman’s compensation based on a $520 weekly payroll, plus a $50 administration fee for each pay period. This totals nearly $1000 a month just for worker’s comp, not even including general liability insurance.
I’m looking for ways to lower these costs. Would switching to a bi-weekly pay schedule help? Or could being classified as a part-time employee in my own business make a difference?
I should also mention that I work full-time as a W2 employee for another company, although my job there is unrelated to my business. Any advice would be greatly appreciated. Thank you!
Welcome to the world of business ownership! It can definitely be overwhelming to navigate the requirements, especially when it comes to insurance costs. Here are a few strategies you might consider to potentially reduce your workers’ compensation insurance fees in Florida:
Explore Different Providers: Not all insurance companies will offer the same rates for workers’ comp. It might be worth shopping around and getting quotes from several providers to see if you can find a better deal.
Pay Frequency: Some providers may offer slightly lower rates if you’re able to make less frequent payments. However, confirm with your provider whether changing your pay schedule from weekly to bi-weekly affects your workers’ comp premiums.
Classifications: Make sure your business activities are classified correctly. Sometimes businesses are charged more because of how they are classified, so clarify this with your insurer to ensure you’re paying the correct amount.
Risk Management: Implementing safety measures and risk management practices can sometimes lead to lower premiums. Show your insurer that you prioritize safety and that you have plans in place to reduce workplace injuries.
Part-Time Consideration: Being a part-time employee in your own company could potentially help reduce your overall payroll expenses, but it also might complicate your workers’ comp situation depending on the structure of your employment and how the insurance is calculated. It’s best to consult with an insurance broker or lawyer familiar with Florida laws to explore this option further.
Consult a Local Expert: You’re likely not the only business owner facing this issue in your area. Speaking to a local business group or a CPA familiar with Florida business insurance could provide valuable insights and suggestions tailored to your situation.
Bundling Insurance: If you need general liability insurance as well, some insurance providers may offer discounts if you bundle multiple policies together.
Remember, while trying to save on costs is important, make sure you don’t compromise on necessary coverage. Good luck with your business!