What Happens When Your Business Doesn’t Have Workers’ Compensation Insurance in Maitland, FL
Businesses everywhere are always searching for ways to save a few dollars. You might be thinking that dropping your workers’ compensation insurance might be a good place to start. After all, your business has been incident-free for as long as you can remember, so what’s the harm? The truth is, workers’ compensation insurance in Maitland, FL, is mandatory for all businesses that have more than four employees. (Construction companies must carry coverage for all employees.) Here’s what could happen if you get rid of your policy.
You Will Face Enforcement Penalties
If state auditors drop by your business and you are unable to show proof of insurance, you will face a hefty fine, which you will have 90 days to pay. If you fudge your employment numbers to make it seem like you have fewer employees on your payroll than you actually do (thus granting you a lower premium), your business will also be subject to a Stop Work Order. If the duties of your employees are misrepresented on your policy in any way, these penalties might also include criminal charges.
Lawsuits from Injured Employees
In the event that an employee is injured while on the job, workers’ compensation insurance in Maitland, FL, will handle the associated medical costs. However, if you do not have the proper coverage (or any at all), your business is liable for the medical expenses. If you do not pay, it is the right of the injured employee to file a lawsuit against your company. What’s more, if your employees suspect for any reason that you do not have the proper coverage, they can send an anonymous tip to the Division of Fraud at the Bureau of Workers’ Compensation, which will be investigated.
Ensure You have Coverage
The bottom line is it is illegal to not have the proper workers’ compensation insurance in Maitland, FL. These rules are in place not only for the good of your employees but for the protection of your company as well. Workers’ comp insurance affords your company so many benefits, you can’t afford to go without it.