2,214.  The number of Stop-Work Orders issued by the Florida Department of Financial Services, Division of Workers’ Compensation during the 2009-2010 fiscal year.  That means the average penalty assessed for the same time period exceeded $22,000 per business.

33,235.   The number of investigations initiated by the Florida Department of Financial Services, Division of Workers’ Compensation during the 2009-2010 fiscal year.  This represented a 14% increase in the number of investigations initiated in the previous fiscal year.

Are you compliant with Florida’s Workers’ Compensation Statutes?

Payment of workers’ compensation benefits to an injured employee must be paid irrespective of fault.  Generally, law firms are not exempt from Florida’s workers’ compensation statutes.  Florida’s statutes establish minimum thresholds for Florida businesses prior to requiring an employer to secure workers’ compensation benefits for his or her employees.  Under Florida’s workers’ compensation laws, any law firm employing at least four full-time employees must provide workers’ compensation coverage to its employees.

By default, corporate officers are considered employees for purposes of counting the number of full-time employees, unless they elect to exempt themselves from workers’ compensation coverage.  Conversely, sole proprietors and partners in law firms are not considered to be employees of their firms unless they elect to be employees under Florida’s workers’ compensation rules.

Employer’s have three additional requirements under Florida’s Workers’ Compensation statutes:

1. Post the  “broken arm” poster and “anti-fraud notice” identifying your insurance carrier and providing information on reporting accidents and injuries.
2. Retain records of all accidents and injuries for 2.5 years.
3. Report all accidents and injuries to the Division of Workers’ Compensation and your insurance carrier as required.

Penalties

Failure to provide workers’ compensation coverage constitutes a felony and exposes a violating employer to civil remedies sought by an injured worker.  Where workers’ compensation coverage is properly in place, such remedy is exclusive and eliminates an employer’s exposure to civil lawsuits by its employees.

The Division of Workers’ Compensation may issue penalties for numerous types of infractions, including a penalty for failing to secure workers’ compensation coverage as mandated by Florida statutes. This penalty may result in a fine equal to 1.5 times the amount an employer otherwise would have paid in premium had such employer properly secured workers’ compensation coverage.

In addition, the Division of Workers’ Compensation may issue a Stop-Work Order prohibiting a violating employer from continuing any business operations. A business’ willful violation of a Stop-Work Order is a third-degree felony and may result in a penalty of $1,000 per day for each day the business fails to cease operations.

How to Get Workers’ Compensation Coverage

MDW-LAW Insurance Group can help law firms obtain the required workers’ compensation coverage.  MDW-LAW Insurance Group is an independent agency with the ability to negotiate with and offer coverage from more than a dozen different insurance carriers.  Our dedicated team of professionals includes fellow Florida Bar members Gary Reshefsky, Esq. and Traci Kratish, Esq..  Let us help you obtain the mandated statutory coverage.

Did you know, however, that in the fiscal year 2009-2010, nearly 10% of Florida’s lawyers had complaints filed against them with the Florida Bar? In the first month of 2011, alone, the Florida Supreme Court disbarred 7 Florida lawyers and suspended another 15 in addition to handing out lighter disciplinary sentences including probation, public reprimands, and judgments requiring attorneys to pay restitution to their clients.

Unfortunately, the Florida Bar’s published statistics don’t reveal how many complaints against Florida lawyers ended up in private litigation.  However, the American Bar Association reported that between 2004 and 2007, of the 40,000 claims it examined against lawyers nationwide, 124 claims resulted in judgments against the lawyers in excess of $1,000,000. For the same period, the American Bar Association reported that personal injury/plaintiff’s attorneys had the most number of claims filed against them.

Mitigating the effects of malpractice claims

Professional liability insurance (aka malpractice insurance) is a great tool to shift the burden of any financial responsibility resulting from a malpractice claim from the lawyer to an insurance carrier.  So what kinds of considerations arise when purchasing professional liability insurance?

Professional liability insurance policies may be written on “claims-made” or “occurrence” forms (one may include optional coverage to cover prior acts); defense costs may be “inside” the policy or “outside” the policy (one provides defense coverage in excess of policy limits); and policies may permit the insured-lawyer to participate in the lawyer’s own case, by prohibiting an insurer from settling a claim without the lawyer’s consent or by allowing an insured-lawyer to select the assigned defense counsel.  What does your policy say?

No-obligation review of your existing coverage

MDW-LAW Insurance Group provides insurance and risk management services ranging from the careful negotiation of a law firm’s professional liability coverage and employee benefits, to the placement of the personal insurance needs of individual attorneys, such as homeowner’s, automobile, and life insurance.  MDW-LAW Insurance Group is an independent agency with the ability to negotiate with and offer coverage from more than a dozen different insurance carriers.  Our dedicated team of professionals includes fellow Florida Bar members Gary Reshefsky, Esq. and Traci Kratish, Esq..  Let us provide you with an independent, no obligation review of your existing coverage.