Lapses in coverage can result in stop-work orders, penalties, fines and assessments being issued by The State of Florida Department of Financial Services. Additionally, an employer who fails to carry workers’ compensation coverage waives their right to raise critical defenses in any law suit brought by an employee to recover for work related injuries or death. These waived defenses include arguments that the injury was caused by the negligence of a fellow servant, that the injured employee assumed the risk of his or her employment, or that the injury was due to the comparative negligence of the injured employee.

It must also be noted that subcontractors, independent contractors and other providers who provide services on behalf of your company create exposure to your company for additional premiums if they experience a lapse in coverage while rendering these services.

The attorneys at Druckman, Fee and Chait, P.A. are available for assistance with all issues arising from lapses in coverage, including failure of insurance carriers to give proper notification that a policy is being canceled or terminated. In addition, a procedure can be designed for your business to help avoid these issues from arising.