Workers' compensation insurance in Florida

The short answer

Workers’ compensation pays for medical care and part of the lost wages when an employee is hurt or made sick by work. In Florida, most employers must carry it once they have a certain number of employees, and that number depends on the industry. Construction has the lowest threshold: coverage is required from the first employee.

When Florida requires coverage

These are the thresholds published by the Florida Department of Financial Services, Division of Workers’ Compensation:

If your business has employees but falls below the number for your industry, the law may not require coverage. Many employers carry it anyway, because customers, general contractors and landlords often ask for proof.

Who counts as an employee

• Corporate officers and LLC members are included in the count, in construction and in other industries.
• Sole proprietors and partners in a non-construction business are not employees unless they choose to be included on the policy. The Division’s page says that choice is made by filing Form DWC-251 with the Division. In construction the rule runs the other way: a sole proprietor or partner is treated as an employee unless the state has approved an exemption.
• Everyone else on your payroll is generally an employee. Whether someone is really an employee or an independent contractor depends on the facts of the working relationship, not on what the paperwork calls it. If you are unsure how to classify a worker, ask an attorney.

The practical result: in construction, the owner usually counts, even with no one else on the payroll, so coverage or an approved exemption is normally needed from day one.

Exemptions

Business owners can opt out of workers’ compensation protection for themselves if they meet the requirements for an exemption. The Division keeps a searchable database of exemptions.

Two things are worth knowing before you apply for one. An exemption covers the owner only; it does nothing for your employees. And an exempt owner who is hurt on the job has no workers’ compensation benefits. The rules differ between construction and other industries, so check the current requirements with the Division before relying on one.

Subcontractors and the contractor’s responsibility

If you hire subcontractors, the Division says you must make sure they have the required coverage before they begin work, and it points to Rule 69L-6.032 of the Florida Administrative Code for the documentation. If a subcontractor does not have coverage, the subcontractor’s workers become your employees for workers’ compensation purposes, and you are responsible for the benefits if one of them is injured or killed on the job.

In practice that means collecting a certificate of coverage or a valid exemption from every subcontractor before the work starts, checking that it has not expired, and keeping it on file. Our contractor insurance guide covers this in more detail.

What happens if you should have coverage and do not

Florida law treats failing to carry required coverage as a serious matter. Under section 440.107 of the Florida Statutes, the Department must issue a stop-work order that halts all business operations and assesses a penalty of twice the premium you would have paid, with a minimum amount set by the statute. An employer that does not carry required coverage may also lose some of the legal protection that coverage normally provides. An attorney can tell you how this applies to your situation.

Separately, to pull a building permit in Florida an employer has to show the permit office proof of coverage or a valid exemption (section 440.103).

What workers’ compensation pays for

• Medical care for the work injury or illness.
• Part of the employee’s lost wages while they cannot work, within the limits set by law.
• Death benefits for dependents if a worker is killed on the job.

It is generally a no-fault system, so benefits do not depend on who caused the accident. The policy usually comes with employer’s liability coverage, which responds to certain claims that fall outside the workers’ compensation system. General liability insurance does not replace either one.

How the premium is worked out

Workers’ compensation premium is based mainly on payroll. Each type of work has a classification code with its own rate, so a roofer and an office worker at the same company are priced differently. The insurer estimates payroll at the start of the policy and audits it afterward, which means you may owe more if payroll turned out higher than estimated, or get a refund if it was lower. Employers with enough claims history also get an experience rating that raises or lowers the price.

That is why we ask for payroll by type of work, not one total, and why putting workers in the wrong classification can cost you either way.

If you are based outside Florida

The Division says an out-of-state employer with workers in Florida must tell its insurance carrier. Florida has to be specifically listed in Section 3A of the policy, unless a reciprocity clause in your home-state policy lets some employees work here temporarily. Ask your current carrier or agent which applies before you start work in Florida.

What to have ready for a quote

• Payroll by type of work for the last year, and your estimate for the coming year.
• The number of employees, including officers and LLC members, and how many are part-time or seasonal.
• Whether you use subcontractors, what you pay them, and copies of their certificates.
• Your current policy and expiration date, and your claims history if you have it.
• Any exemptions you or your officers hold.

Ready to start? Tell us about your business.

Last reviewed October 13, 2026. This page is general information. It is not legal advice and it is not an offer of coverage.