Mandatory coverage for medical bills, lost wages, disability benefits, and death benefits to employees injured on the job, plus employer's liability protection. Florida requires it for non-construction businesses with four or more employees and construction with one or more. Georgia requires it at three or more. We write standard, specialty, and pay-as-you-go workers comp through multiple appointed carriers.
Workers compensation is one of the few commercial coverages that's legally required. Florida and Georgia both mandate workers comp for most businesses with employees, with rules differing by industry and headcount. Florida requires coverage for non-construction businesses with four or more employees and construction businesses with even one employee. Georgia requires coverage at three or more employees. Operating without required coverage exposes the business to state fines (Florida penalties can equal twice the premium that would have been paid, with a $1,000 minimum), stop-work orders that can shut the operation down until coverage is in place, and uninsured exposure to injury lawsuits the business has no protection against.
Beyond compliance, workers comp is the practical mechanism for handling work-related injuries. It pays medical bills, replaces a portion of lost wages while the employee can't work, provides permanent disability benefits when injuries result in lasting impairment, and pays death benefits if the worst happens. In exchange, employees generally give up the right to sue the employer for the injury (the "workers comp bargain") that keeps injury matters in a predictable state-administered system rather than the civil courts. We help businesses understand the rules, get accurate quotes, and structure coverage that satisfies both legal requirements and practical business needs.
All reasonable and necessary medical care related to the work injury, typically without coverage limits, paid within state fee schedules. Includes initial treatment, hospitalization, surgery, prescriptions, physical therapy, and ongoing care.
Replacement of a portion of lost wages while the employee can't work, typically 66.67% of average weekly wage subject to state maximum (recalculated each year based on the statewide average weekly wage).
Permanent partial disability benefits for lasting impairment per a state-published schedule, plus permanent total disability benefits for severe injuries that prevent return to any gainful work.
Burial expenses plus ongoing benefits to surviving dependents (spouse, minor children, sometimes other qualifying dependents) when a work injury results in death.
Coverage for lawsuits brought by injured employees that fall outside the workers comp system, including third-party-over claims and consequential bodily injury claims by family members.
The carrier handles all aspects of the workers comp claim: medical case management, return-to-work coordination, fraud investigation, hearings before the state workers comp board, and legal defense as needed.
Workers comp covers employees only. Injuries to customers, vendors, the public, or other third parties are covered under general liability, not workers comp. The two policies work together for any business with employees and public-facing operations.
Genuine independent contractors with their own workers comp typically aren't covered under your policy. Misclassified workers (1099 in name only) often are, and audits can recharacterize them. Subcontractor certificate collection matters significantly in construction.
Injuries occurring during personal activities, on the way to and from work in many cases, while intoxicated, or from intentional self-harm are typically not covered. Coverage applies to injuries arising out of and in the course of employment.
Discrimination, harassment, wrongful termination, and similar employment practices claims are not workers comp claims. Employment Practices Liability Insurance (EPLI) is the right coverage for these exposures.
Workers covered under federal acts (Longshore and Harbor Workers, Jones Act for maritime workers, FELA for railroad workers) need specific federal coverage rather than state workers comp. Each federal act has its own coverage structure.
Workers comp doesn't pay punitive damages, fines, or penalties imposed for intentional acts or gross negligence by the employer. Some intentional-tort claims by employees may also fall outside both workers comp and standard employer's liability.
Florida workers comp is governed by Chapter 440 of the Florida Statutes and administered by the Florida Division of Workers' Compensation. Requirements: non-construction businesses with four or more employees (full-time, part-time, owners) must carry coverage; construction businesses must carry coverage with even one employee; agricultural businesses with six or more regular employees or twelve seasonal employees must carry coverage. Florida construction sole proprietors must either carry coverage or file an active exemption. Florida cracked down on ghost policies in 2018, and current rules require active coverage or active exemption for construction sole proprietors. Florida penalties for non-compliance are significant: 2× the premium that would have been paid for the period of non-compliance, with $1,000 minimum, plus potential stop-work orders.
Georgia workers comp is administered by the State Board of Workers' Compensation (SBWC) and is required for businesses with three or more employees, with limited exceptions. Sole proprietors, partners, and certain corporate officers (LLCs and corporations) can elect not to be covered themselves, but coverage is still required for employees. Georgia uses NCCI (National Council on Compensation Insurance) for class codes, base rates, and experience modification factors, the same standard scheme used in Florida and most other states. Non-compliance penalties in Georgia include civil penalties of up to $1,000 per violation plus potential criminal penalties for willful non-compliance.
Workers comp premium uses a standardized formula: class code rate × payroll per $100 × experience modification factor × other adjustments. Class codes are published by the National Council on Compensation Insurance (NCCI) and reflect what employees actually do (clerical, retail sales, light manufacturing, roofing, etc.). Each class code has a base rate published by the carrier (or by state in some states), expressed per $100 of payroll.
Payroll is the wages paid to employees in each class code during the policy period. Florida and Georgia both use NCCI class codes, with some state-specific variations. Executive officers and partners have minimum and maximum payroll thresholds for the WC calculation, regardless of their actual compensation. We help confirm class code accuracy and payroll splits at quote time, since misclassification is one of the most common workers comp issues at audit.
Experience modification factor (e-mod) is calculated by NCCI for businesses with three years of premium history and reflects how the business's claims experience compares to similar businesses in the same class. An e-mod of 1.00 is average. Below 1.00 produces a credit (lower premium); above 1.00 produces a debit (higher premium). E-mod is one of the most impactful single variables in workers comp pricing, and improving it through claims management and return-to-work programs produces meaningful annual savings.
Workers comp policies have two coverage parts. Part A (workers compensation benefits) has unlimited limits because the state schedule controls what's paid. Part B (employer's liability) has selectable limits, typically $100K per accident / $500K per disease policy / $100K per disease per employee. Higher Part B limits (sometimes $1M/$1M/$1M) are common for businesses that also carry a commercial umbrella requiring a minimum underlying employer's liability limit.
Statutory (unlimited)
Medical, lost wages, disability, and death benefits paid per the state workers comp schedule. No policy limit because the state schedule controls what's owed and what's paid.
$100K / $500K / $100K (standard)
Standard limits. $100K per accident, $500K per disease policy aggregate, $100K per disease per employee. Higher limits (often $1M/$1M/$1M) are common when a commercial umbrella requires a higher underlying employer's liability limit.
Lower-risk clerical and professional class codes (8810 clerical, 8742 outside sales, etc.) typically rate favorably. Mostly straightforward placements with standard admitted carriers and online digital writers.
Construction class codes rate significantly higher than office classes, and Florida construction requires coverage at even one employee. Subcontractor certificate collection, class code accuracy, and audit preparation matter substantially.
Restaurants and retail with significant hourly workforce have meaningful workers comp exposure. Class codes vary by operation type (fast food, full-service, retail goods). Variable payroll makes pay-as-you-go options attractive.
Crossing the employee thresholds (1 for construction, 3 in Georgia, 4 in Florida non-construction) triggers mandatory coverage. We help businesses get coverage in place at the right time without overpaying for excess capacity.
Businesses operating in both Florida and Georgia need coverage that responds in both states. Most carriers accommodate multi-state policies; some classes require state-specific placements. We coordinate coverage across our two-state service area.
Businesses with elevated experience modification factors face significantly higher premium and reduced carrier appetite. We help with carrier selection, e-mod recalculation review, and identifying placement options when the standard market is restrictive.
Class code is the largest single variable. A clerical class code (8810 in NCCI) might rate at $0.20 per $100 of payroll; a roofing class code (5551) might rate at $25 or more per $100. The difference reflects the vastly different injury frequency and severity profiles. Class code accuracy is critical because misclassification at quote or at audit can produce significant premium adjustments and coverage disputes.
Payroll volume scales premium directly. A business with $500K of payroll in a class will pay roughly 5× the premium of a business with $100K in the same class. Variable payroll across the year (seasonal operations, project-based work, hiring fluctuations) makes pay-as-you-go workers comp attractive because premium is paid as wages are actually paid rather than as estimated up front.
Experience modification factor adjusts premium based on the business's three-year claims history relative to similar businesses. E-mod above 1.00 means the business has had worse than average losses; below 1.00 means better. Improving e-mod through safety programs, return-to-work programs, and claims management produces compounding savings over time.
Workers comp offers several premium levers across class accuracy, claims management, payment structure, and dividend programs.
Confirming employees are classified to the right code (not just a higher code "to be safe") can produce meaningful premium savings. Clerical employees in mostly-construction businesses, for example, typically rate to the much lower clerical class.
Pay-as-you-go workers comp pays premium each pay period based on actual payroll, improving cash flow and eliminating large year-end audit adjustments. Particularly useful for variable-payroll operations.
Active claims management, light-duty return-to-work programs, and prompt incident reporting reduce claim severity and improve e-mod over time. These produce compounding savings across multiple renewal cycles.
Some workers comp carriers offer dividend programs that pay back a portion of premium when actual loss ratios are favorable. Dividends are not guaranteed but can be a meaningful return for businesses with strong loss performance.
Workers comp is one of the most underwriting-intensive commercial lines because of its mandatory nature, audit structure, and impact on the business's e-mod over time. A coverage review every renewal helps confirm class codes, payroll splits, and carrier fit remain appropriate as the business evolves.
In Florida: yes for non-construction businesses with 4+ employees, construction with 1+, and agricultural per the specific thresholds. In Georgia: yes for businesses with 3+ employees. Sole proprietors and certain officers may elect out for themselves but typically still need coverage for employees. We help confirm the rule for your specific situation, since edge cases (LLCs, family member employees, leased employees through PEOs) can be nuanced.
Standard workers comp policies estimate annual payroll up front, charge premium based on the estimate, and audit at year-end to true-up. Pay-as-you-go workers comp pays premium each pay period based on actual payroll, improving cash flow and reducing audit surprise. Pay-as-you-go works particularly well for variable-payroll operations (seasonal, project-based contractors, growing businesses). Most major carriers offer both structures.
Professional Employer Organizations (PEOs) co-employ the workforce and provide workers comp coverage as part of the package. PEOs can be a fit for very small businesses that want HR support bundled with workers comp, or for businesses with placement difficulty. Standard workers comp through a carrier is typically more cost-effective for businesses that already have HR capability and clean loss history. We help compare both approaches when relevant.
Standard Part B limits ($100K/$500K/$100K) work for most small-to-mid-size businesses. Higher limits (often $1M/$1M/$1M) are common when the business carries a commercial umbrella, since umbrellas typically require a higher underlying employer's liability limit. We confirm umbrella requirements at quote time and structure Part B limits accordingly.
We write workers compensation through multiple appointed carriers covering most standard classes. The Hartford is one of the largest workers comp writers in the country and is a strong fit for most standard small-to-mid-size businesses. Hiscox and NEXT handle small business workers comp through digital-first models with pay-as-you-go options. For higher-risk classes (construction, specialty operations) or accounts with claims-history challenges, wholesale brokers like Bass Underwriters and Bridge Specialty access specialty workers comp markets.
For hard-to-place Florida workers comp (high-hazard classes, significant claims history, businesses that can't find standard coverage), the Florida Workers' Compensation Joint Underwriting Association (FWCJUA) is the state's market of last resort. FWCJUA premium is typically higher than standard market pricing, but the program ensures coverage availability for businesses that need it.
Carrier appointments and program availability vary by line, state, class code, and program. Quotes and placement depend on underwriting eligibility, claims history, payroll, and class code mix. Higher-risk classes (most construction, specialty manufacturing, certain trucking) may be placed through wholesale brokers in excess and surplus (E&S) markets. FWCJUA is a last-resort option when standard and specialty markets are unavailable.
Tell us about your business and workforce, give us a call, or request a free quote. We'll confirm what's required for your specific situation, compare standard and pay-as-you-go options across our appointed carriers, and recommend the right structure.
