Workers' compensation is one of the most misunderstood requirements for Florida businesses, because the threshold depends on your industry.
Who is required to carry it
| Industry | Workers' comp required at… |
|---|---|
| Construction | 1 or more employees |
| Non-construction | 4 or more employees (full- or part-time) |
| Agriculture | 6 regular employees, or 12 seasonal (working 30+ days) |
| Out-of-state employers | Coverage required for work performed in Florida |
Corporate officers and LLC members generally count as employees unless they file an exemption with the state.
What it covers
Medical bills and a portion of lost wages for job-related injuries or illness, plus employer's liability protection against injury lawsuits. It is a no-fault system: benefits are paid regardless of who caused the injury.
Exemptions
Construction owners can exempt a limited number of officers or members, and non-construction officers can exempt too, but exemptions must be filed with the state. You are not exempt by default.
Why it matters
Operating without required coverage can bring stop-work orders and steep penalties — in Florida, commonly twice the premium you would have paid during the uninsured period — and general contractors won't let uninsured subs on their jobs.
What workers' comp costs in Florida
Premium is calculated per $100 of payroll, using a class code for each type of work — so a roofing crew costs far more per dollar of payroll than clerical staff, and your claims history then adjusts it up or down. Because class codes and carrier appetite vary widely, an independent agency that writes several comp markets — often with pay-as-you-go billing that bases premium on actual payroll each period — usually lands the best rate and smooths cash flow.
The subcontractor trap
If you hire subcontractors who don't carry their own workers' comp, you can be held responsible for covering them, and their payroll can be added to your premium audit at the end of the term. Always collect a current certificate of insurance (or a valid state exemption) from every sub before they start — it's a common and expensive trap for contractors.
Frequently asked questions
Does a Florida business with one employee need workers' comp?
In construction, yes. Non-construction businesses generally need it at four or more employees, and agriculture at six regular or twelve seasonal.
Can business owners exempt themselves from workers' comp in Florida?
Often, yes, but the exemption must be filed with the state. Owners aren't automatically exempt, and any covered employees still require coverage.
What happens if I don't carry required workers' comp in Florida?
You risk stop-work orders and significant penalties — commonly twice the premium you would have paid during the uninsured period — and general contractors won't let you on their jobs.
How much does workers' comp cost in Florida?
Florida workers' comp is priced per $100 of payroll by class code, so the cost depends heavily on the type of work and your claims history. Pay-as-you-go plans base the premium on your actual payroll each period.
Am I responsible for a subcontractor's workers' comp?
Yes. If a subcontractor doesn't carry their own workers' comp, you can be responsible for covering them, and their payroll can be added to your premium audit. Always collect a certificate of insurance or a valid exemption from every sub.
Do corporate officers and LLC members count as employees?
By default, yes. Corporate officers and LLC members can opt out only by filing an exemption with the state, and in construction only a limited number may do so.
Not sure if you need workers' comp?
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