Worker’s Compensation Insurance and Your South Florida Business

Florida Workman's Comp Insurance
From the moment you start your business you expose it to liability it interacts with people and property all the time and if anything bad happens, you should be able to protect it.  That is why it is your job as a small business owner is to ensure that you get business insurance, including workman’s compensation coverage.  There are many kinds of business insurance and although you may be tempted to think that not all of them are necessary, think again.  Are you sure you will never find yourself in some particular situations?
You may think that because you are small you don’t need protection from certain situations.  This kind of thinking is wrong.  Businesses, by design, are meant to grow.  The bigger your Palm Beach business becomes the more exposed you become.  Whether your business is located in Boca Raton or Wellington, West Palm Beach or Boynton Beach, you should take out the appropriate insurance to cover all possible scenario.  That way, if you find yourself liable, you don’t have to close your doors in order to pay a claim.  It may be advisable for you to purchase one if not all of the following types of business insurance policies that will be discussed below.  Remember, my team and I are here to assist at any point in time, so if you have questions on any type of coverage please contact us.

Worker’s Compensation in West Palm Beach, FL

The main aim of this article is to talk to you about worker’s compensation amongst other forms of small business insurance that could affect your Palm Beach County business.  This form of insurance covers expenses related to when an employee gets injured while on the time clock.  Which includes actual injuries and/or illnesses that may have been caused as a result of conditions on the job.  This insurance pays out the claim to the employee in order to avoid litigation.  Once the employee has received worker’s compensation they cannot go to court and sue the business for getting hurt on the job.

This insurance is also awarded to families of people who are killed on the job.  It is supposed to compensate for the income they would have otherwise continued to bring home.  Because the amounts can be very large some states have set limits as to how much can be awarded to protect businesses.  Note that workman’s compensation is paid out only once and covers medical expenses, lost wages, death benefits and rehabilitation, if required.

You might be wondering, “So do I need this insurance if you only have a few employees?”  Unfortunately, it doesn’t work that way.  The law requires you to take out worker’s compensation whether you have 20 employees or whether you have 1,000.  By not having worker’s compensation insurance will be to your detriment as you are exposing yourself to a lawsuit should anyone get injured while working for you.  They are able to sue you (amount will be determined by the courts) and the state of Florida may also penalize you by asking you to pay a fine.

Other Forms of Business Insurance:

General Liability Insurance

Think of this as workman’s compensation, but for people who don’t work for you.  What happens when a member of the local Palm Beach community is injured as a result of your business?  They can turn around and sue you for more money than you can afford.  The reason you take out general liability insurance is to protect yourself from people who have genuine injury grievances and those who make a living suing South Florida businesses for malicious injury claims.  I’m sure you have heard about people who fake slipping on a banana peel in a business and then sue for millions.  Your Palm Beach business could be a potential target of this kind of scam and to ensure you are properly covered it is recommended to take out general liability insurance.  Note that it also covers property damage, false advertising and slander.

Product Liability Insurance

What would happen if you made a defective product that caused harm or injury to someone?  They would turn around and sue you.  Product liability insurance protects you from this should your product cause harm, you can pay the aggrieved using this insurance.  The amount of liability varies among industries.  If you are in pharmaceuticals, for instance, you are more likely to cause harm than if you manufacture something like cat food.

Professional Liability Insurance

Professional liability insurance which is also called errors and omissions insurance covers malpractice, errors and negligence in the provision of professional services.  South Florida doctors, for example, are usually required to purchase professional liability insurance.  The amount varied based on the amount of risk that the insurance company places on an individual.  If a doctor has a clean record, for instance, they will not pay premiums as high as those paid by a doctor who has a history of malpractice.

Property Insurance

This kind of insurance is necessary if your business operates out of a commercial building.  It is meant to cover losses as a result of theft, fire, smoke, wind, hail and other things.  Covered property includes Buildings, equipment, lost income, interruptions, money and even documents.  What if you own a home-based business in Palm Beach County?  You can add some money to your homeowners policy to cover your business, but it is always better to take out property insurance as it is more comprehensive.

Commercial Auto Insurance

This, as you may imagine, covers business vehicles.  It covers personal injury, property damage as well as loss of use of the vehicle in the event of an accident.  If your employees or you drive as a part of your job, it is highly recommended to purchase a commercial auto policy to ensure you are properly covered.

Business Owners Policy

This is a comprehensive policy that is a combination of all the insurance policies any business would need.  The package includes business interruption insurance, general liability insurance, property insurance, vehicle insurance and crime insurance.  The policies are designed to be altered depending on what a business needs.  It is ideal for businesses that have just opened their doors as there is some cost savings, but as your business grows, it is advisable to take out separate policies for different parts of your business.

Directors and Officers Insurance

What would happen if one of your directors, while in the course of duty, did something that affects him or the business?  The business would be forced to pay as a result of any injury and damages that may have occurred.  To cover your business, directors and officers insurance takes care of any liability that may arise from the actions of your directors while they are in the course of duty.

Data Breach Insurance

Data hacks have become so common nowadays that any business in its right mind should expect to be hacked at one time or another.  That is what data breach insurance is for.  If a lawsuit results from a data breach then this kind of insurance will take care of it.  The breach can be either electronic or in paper form.

Homeowners Insurance

This looks like an unlikely candidate for an article on business insurance, but the truth is that if you don’t take out homeowners insurance and something happens to your home you are likely to turn to your business in order to secure a new home.  This kind of insurance protects not just the structure of your home, but also the contents within the home.

Renters Insurance

Maybe you don’t own a home yet and live in a rental.  You are required to take out renters insurance in order to protect the rental, its contents and any injuries that may occur within the rental.

Life Insurance

This is a kind of insurance that is designed to protect your loved ones in case you die.  So long as you have a spouse or children or anyone else who depends on you, you should have life insurance.  In the event that you pass on, your loved ones will be compensated allowing them to continue living the lifestyle they are used to.

Personal Umbrella Insurance

Sometimes you take out insurance and then incur liability that is bigger than your insurance can settle. That is when you need a personal umbrella policy.  It is like extra coverage that you can turn to when other policies are exhausted.  It is important for a growing business because you don’t know what size of liability you incur in the course of day to day business.  You don’t want to take the risk of exposing your business so it is best to take out a personal umbrella policy.


If you have all of the business insurance policies I’ve discussed, then you can be sure that your business is well taken care of in terms of liability.  If not, then I strongly recommend contacting my team and I at Brightway Insurance Palm Springs FL or Brightway Insurance Boynton Beach FL.  We are West Palm Beach, Florida’s business insurance specialists and we are ready to assist you with all of your insurance needs.  I guarantee you will be in great hands with my team at Brightway!

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A Blog offering Tips and helpful navigation to better Insurance coverage in the State of Florida

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