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Most
business owners in Florida think they want to buy their
own policy. You may be able to do that if you have enough
employees, a large enough payroll and a substantial premium.
However, I don't think any company with less than 10-20
employees should buy their own policy because:
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If
you are able to get your own policy, you will have
to estimate how much total payroll you expect to
have in the next 12 months, which is difficult to
do, and that amount will be multiplied by your WC
premium % to determine your estimated annual premium.
Then you will have to pay that amount in full when
you get the policy
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Once
each year the insurance company will send an auditor
to your location that will look at every check you
wrote during the policy year to determine the exact
amount of your payroll for the previous 12 months.
All of it is subject to a workers compensation premium.
So if your actual payroll exceeds your estimated
payroll you have to write a big check to the auditor.
(The best surprise is no surprise!)
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Any
claims will quickly raise your premium for a number
of years thereafter, or the insurance company will
just cancel your policy. |
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