If you run a business in Florida, you may be required to carry workers' compensation insurance for your employees. This type of insurance covers medical expenses and lost wages for workers who get injured or sick on the job.

But did you know that workers' compensation insurance may not cover all of your liabilities as an employer?

Employer’s liability insurance is a type of coverage that protects you from lawsuits filed by employees or their families for work-related injuries or illnesses that are not covered by workers' compensation. For example, if an employee sues you for negligence, emotional distress, pain, and suffering, or wrongful death, your employer’s liability insurance can help pay for your legal defense and any damages awarded.

We Offer the Best Employers' Liability Insurance in Florida

At Bellken Insurance Group, we understand the risks you face as an employer in Florida. That's why offer comprehensive employers' liability insurance that can provide the coverage you need to protect your business and employees.

With our policies, you'll get access to experienced legal services, risk management resources, and competitive premiums that can fit within your budget. Contact us today to learn more about our employers' liability insurance policies and get a fast, free quote.

Florida Employers Liability Laws and Limits

Employer’s liability insurance is not mandatory in Florida, but it is highly recommended for any business that has employees. Even if you follow all the safety regulations and provide adequate training and supervision for your workers, accidents can still happen and lawsuits can still arise. By having employers' liability insurance, you can have peace of mind knowing that you have a safety net in case of a legal claim.

Employers' liability insurance is usually included as part of your workers' compensation policy, but it may have limits and exclusions that vary depending on your state and industry. In Florida, employers’ liability insurance has a minimum limit of $100,000 per accident, $100,000 per employee, and a $500,000 policy limit. However, these limits may not be enough to cover the costs of a serious lawsuit, especially if you have multiple employees involved or face punitive damages.

That's why you may want to consider increasing your employer’s liability insurance limits or purchasing a separate commercial umbrella policy that provides additional coverage beyond your workers' compensation policy. This can help you protect your business assets and reputation in case of a worst-case scenario.

Coverages Available in a Florida Employer’s Liability Insurance Policy

Our employer's liability insurance policies can provide coverage for a variety of risks, including:

Third Party-Over Action Lawsuits

A third-party-over action is a type of lawsuit that involves an injured employee, a third party, and an employer. Here is how it works:

An employee gets injured at work and receives workers' compensation benefits from the employer.
The employee also sues a third party (such as a property owner, a subcontractor, or a manufacturer) for causing or contributing to the injury.
The third party then sues the employer for indemnification, based on a contractual agreement or a legal theory that holds the employer liable for the employee's injury.

In other words, a third party-over action is a way for a third party to pass on its liability to the employer, even though the employer has already paid workers' compensation to the employee. This can result in double or triple liability for the employer, depending on the amount of damages awarded to the employee and the third party.

Dual-Capacity Lawsuits

A dual-capacity lawsuit is a type of third-party liability claim that is sometimes brought against employers by their employees. It arises when an employee is injured while using a product manufactured by the employer (or one of its subcontractors). In this case, the employee may sue the employer in its capacity as both the employer and manufacturer of the product.

Our employers' liability insurance policies can provide coverage for these types of claims, helping to protect your business from the financial risks associated with dual-capacity lawsuits.

Consequential Bodily Injury Lawsuits

Consequential bodily injury (or CBI) lawsuits arise when an employee claims that his or her injury was caused in part by the employer's negligence. These types of claims are typically brought against employers when the employee's injury is more severe than a traditional workers' compensation claim.

Loss of Consortium Lawsuits

Sometimes an employee's family members, such as a spouse or child, may sue the employer for loss of consortium. This type of claim is based on the idea that the employee's injury has caused a disruption in the family life of the employee.

Our Florida employers' liability insurance policies can provide coverage for these types of claims, helping to protect your business from the financial risks associated with loss of consortium lawsuits.

Florida Employer’s Liability Vs Workers’ Compensation Insurance

As mentioned above, Florida employers' liability insurance can cover certain types of claims excluded from workers' compensation insurance. Generally speaking, workers' compensation benefits are based on the severity of the injury, while employer's liability benefits are based on liability. In other words, workers' compensation pays for medical expenses, while employer's liability pays for legal fees and settlements.

It is important to note that an employer's liability coverage is not mandatory in Florida. However, if you are exempt from workers' compensation or if you purchase workers' compensation from a state fund that does not include employer's liability insurance, you may need to buy a separate policy or a stop-gap endorsement. This can help protect your business from the financial risks associated with third-party liability claims, dual capacity lawsuits, consequential bodily injury lawsuits and loss of consortium claims.

Employment practices liability insurance (EPLI) vs employers’ Liability Insurance

Employment practices liability insurance (EPLI) is a type of coverage that provides protection from claims related to wrongful termination, discrimination, and harassment. As the name implies, this type of policy covers the employer's legal costs in defending against such claims.

In contrast, employers' liability insurance provides coverage for third-party liability claims, dual capacity lawsuits, consequential bodily injury lawsuits and loss of consortium claims. This type of policy is designed to protect the employer from financial losses associated with these types of cases.

Although EPLI and employers' liability insurance are two distinct types of coverage, they can be purchased together as part of a comprehensive business insurance package. Purchasing both types of coverage can help protect your business from a variety of legal risks.

How Much Employer's Liability Insurance Do I Need in Florida?

To determine the amount of coverage you need, consider the following five factors:

The size and scope of your business - Are you a small business with few employees or do you have hundreds of employees?
The type of work your employees do - Is it hazardous? Does it involve working with potentially dangerous materials?
Your industry - Are you in a high-risk industry such as construction or manufacturing?
Potential third-party liability claims - Could your employees get sued by someone else if they are injured?
The cost of defense and settlement - How much would it cost to defend yourself against a lawsuit or settle with the plaintiff?

By considering these five factors, you can get a better idea of how much employer's liability insurance you need to protect your business from the financial risks associated with third-party liability claims. It is important to remember that these types of claims can be costly and unpredictable, so it is worth taking the time to make sure you have adequate coverage.

How Much Does Florida Employer's Liability Insurance Cost?

The cost of an employer's liability insurance will vary depending on the size and scope of your business, the type of work your employees do, and other factors. Generally speaking, a basic policy typically costs between $500 to $1,000 per year for small businesses with few employees. Larger businesses and those in more hazardous industries may pay more.

Ways to Lower Your Florida Employer's Liability Insurance Costs

Shop around for multiple quotes and compare coverage options – Different insurers offer different rates, so it is important to shop around and compare policies from several different providers before making a decision.
Take advantage of discounts – Many carriers offer discounts for companies that have strong safety records and practice proactive risk management.
Look for bundled policies – Many insurers offer discounts when you bundle an employer's liability insurance with other types of coverage such as workers' compensation or general liability insurance.
Consider self-insuring – Self-insuring may be an option if you have a large financial reserve and are willing to assume the risk yourself.
Mitigate your risks – It is important to take steps to minimize potential liabilities by implementing safety protocols and training programs for your employees.
Increase deductibles – Increasing the amount you are willing to pay out of pocket (insurance deductible) can help lower your premiums.
Review your policy periodically – As your business grows and changes, it is important to review your policy regularly and make sure your coverage limits are adequate.

By taking the time to shop around for quotes, take advantage of discounts, and mitigate risks, you can ensure that you get the right amount of coverage at a price that fits your budget.

Get Free Quotes on Florida Employer's Liability Insurance

If you’re looking for the right coverage at the best rate, it pays to shop around. With Bellken Insurance Group, you can easily compare quotes from multiple insurers in just a few minutes and find the perfect policy for your business.

Start comparing today!