Employer Frequently Asked Questions

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Insurance Coverage

Who needs Workers’ Compensation Coverage?

Construction Employers who have 1 or more employees, including any non-exempt business owners;
Non-Construction Employers who have 4 or more employees including any non-exempt business owners;
Agriculture - when there are 6 regular employees; and/or 12 seasonal employees who work more than 30 days during a season or more than a total of 45 days in the same calendar year
Reference: Section 440.02(20), Florida Statutes

Is there of list of trades that are considered to be in the Construction Industry?

The list of trades that are considered to be in the construction industry is found in 69L-6.021 Florida Administrative Code.

I hire sub-contractors, aren’t they responsible for their own insurance?

Yes, each sub-contractor is responsible for providing Workers' Compensation insurance for their workers in the event of a work related injury, illness, or fatality.
However, the primary contractor is responsible for ensuring that the sub-contractor has provided the coverage for its workers.
If a worker is injured, without being protected by insurance, then the contractor becomes responsible for the payment of benefits.
For more information please review Section 440.10, Florida Statutes.

What does the contractor need to obtain from the sub-contractor to verify coverage?

Prior to the beginning of the job the contractor must obtain the following:

If the sub-contractor has a Workers' Compensation insurance policy, obtain any of the following from the sub-contractor:
- A copy of the "Information Page" of the subcontractor’s workers' compensation insurance policy;
- A screen print from the Division of Workers' Compensation, Proof of Coverage database confirming that workers' compensation coverage is in effect for the subcontractor, or
- A Certificate of Liability Insurance and written documentation obtained either from the producer or carrier confirming that workers' compensation coverage is in effect for the subcontractor.
If the sub-contractor is a client company of an employee leasing company, you must obtain a Certificate of Liability Insurance and a list of the employees leased to the subcontractor obtained from the employee leasing company as of the date the subcontractor commenced work for the contractor on each project.
If the sub-contractor has an exemption for the business owner(s) then you may obtain either a copy of the exemption from the sub-contractor or a screen print of the exemption page from the Division of Workers’ Compensation, Exemption Search database.

For more complete information please review 69L-6.032, Florida Administrative Code.

What should an Out-of-State Employer know about Florida's coverage requirements?

An out-of-state employer engaged in the construction industry must immediately notify his or her insurance company and, or insurance agent that it has employees that are engaging in work in Florida.

Any construction industry employer having one or more part- or full-time employees performing work in Florida is required to obtain a Florida policy through a Florida-licensed insurance company. The employer must use the Florida job classification codes, approved rates, rules, and manuals prior to beginning work in Florida. If the construction industry employer has an out-of-state policy, the insurance company must be licensed in Florida, and Florida must be listed in Section 3A of the policy. A Non-construction industry employer is required to obtain a Florida policy through a Florida-licensed insurance company once it has 4 or more employees working in Florida.
For more information, please review Section 440.10(1)(g), Florida Statutes and 69L-6.019 Florida Administrative Code.

If an Out of State Employer is working in Florida temporarily, what do they need to do? And what is Extraterritorial Reciprocity?

Out-of-state employers whose home jurisdiction has in its statute an "extraterritorial reciprocity" clause allowing temporary employees from another jurisdiction (including Florida) to work under the "home state's" workers' compensation policy are permitted to work in Florida using the workers' compensation policy from their "home state", as long as the work is temporary in nature. Temporary is defined as no more than 10 consecutive days with a maximum of 25 total days in a calendar year.
For a current list of the jurisdictions that have an extraterritorial reciprocity statute see: Reciprocity List (PDF).
Florida Employers who plan to work in another state temporarily may check the above listed resource in order to determine if the state in which they plan to work has a reciprocal agreement, accepting the Florida Workers’ Compensation insurance policy for temporary work. For further information please contact the State in which you plan to work for specific laws and rules that apply to their Workers’ Compensation Coverage Requirements.
For more information, please review Section 440.094, Florida Statutes.

Where do I find Workers ’ Compensation Insurance Coverage?

Contact an insurance agent. You can also contact the following insurance agent associations:

Florida Association of Insurance Agents at www.trustedchoice.com
Latin American Association of Insurance Agents at (305) 477-1442
Professional Insurance Agents of Florida at www.piafl.org

If you cannot obtain coverage through the standard workers' compensation market, your insurance agent may contact the Florida Workers’ Compensation Joint Underwriting Association (FWCJUA) at (941) 378-7400 or visit their website at www.fwcjua.com. The workers' compensation rates in the FWCJUA will be higher than the rates in the standard market.

By joining a commercial self-insurance fund where the members pool resources and spread liabilities for any commercial and/or casualty insurance; for additional information please contact the Florida Office of Insurance Regulation.
By qualifying as an individual self-insured; for additional information, contact the Division of Workers' Compensation at (850) 413-1784.
You may also consider entering into an employee leasing arrangement with a professional employer organization that has secured workers' compensation coverage on behalf of its clients.
For more information, please review Section, 440.02, Florida Statutes.

How much does Workers' Compensation Insurance cost?

The cost of Workers' Compensation insurance is based upon 3 primary factors: the payroll for the business, the type of work performed by the employees, and the individual employer’s claims history.
Premium discounts may also be available to employers. Two of the more common discounts include a 2% discount for a workplace safety program and a 5% discount for a drug free workplace program. Each of these programs must be renewed every year in order to receive the discount.

Who can I contact with questions or concerns regarding risk classification codes and premium amounts?

Call your insurance carrier or service representative. If you have a question regarding the risk classification codes or your Experience Modification Factor, you or your agent can call the National Council on Compensation Insurance (NCCI) at 1-800-622-4123.

Is it legal to call all of my workers "independent contractors" and avoid having to have Workers' Compensation Insurance for them?

Florida's workers' compensation law does not allow for independent contractors in the construction industry. The person is either a business owner or an employee of a business.
In the non-construction industry, there are specific criteria in the Workers’ Compensation law that identifies persons as “independent contractors”. For more information please review Section 440.02(18)d1, Florida Statutes.
The ultimate decision as to independent contractor status is with the person alleged to be independent and that person is responsible for proving that they are an independent contractor for Workers’ Compensation purposes.

What are the Workers' Compensation Exemption Eligibility Requirements and Information?

Reference the Workers' Compensation System Guide for more detail on eligibility.

How does the Division of Workers' Compensation enforce employer compliance with the law?

Reference the Workers' Compensation System Guide for more detail on enforcement.