Is workers comp required in Florida?
Florida generally requires construction businesses with one or more employees and most non-construction businesses with four or more employees to carry coverage; agricultural employers have separate thresholds. Owners, partners and corporate officers are treated under their own rules, and some workers such as certain agricultural or domestic employees may be handled differently.
Buying coverage in Florida
Workers comp in Florida is a competitive private market. Agents compare carriers that write your class of business, and an assigned-risk option exists for employers that private carriers decline.
Who sets the rules
The Florida Division of Workers' Compensation oversees workers comp in Florida. In Florida, the National Council on Compensation Insurance (NCCI) provides the classification system and loss costs that insurers use to file rates.
What Florida employers should know
- Corporate officers in Florida can apply for an exemption through the state, and the rules for construction officers are stricter than for other industries.
- Florida enforces coverage actively on construction sites, so contractors should keep proof of coverage or exemption available.
Florida facts employers ask about
Florida's Division of Workers' Compensation, part of the Department of Financial Services, enforces coverage with compliance investigators who visit job sites and businesses. When they find an uninsured employer they can issue a stop-work order and assess a penalty based on the premium the business should have paid over the look-back period, which is often far more expensive than the policy would have been.
Corporate officers may apply to the Division for an exemption from coverage. Outside construction the rules are broader, but in construction an officer must own at least 10 percent of the company and no more than three officers per company may be exempt. An exemption covers only the officer, never the company's employees.
Rates are developed by NCCI and reviewed by the Florida Office of Insurance Regulation, which issues rate decisions that apply statewide. Out-of-state contractors working on Florida projects generally need a policy written or endorsed specifically for Florida, because general other-states coverage may not satisfy the state's rules.
Sources: Florida Division of Workers' Compensation; Florida Office of Insurance Regulation. Rules change; confirm current requirements with the agency before you rely on them.
How premiums are calculated
Insurers in Florida price policies from payroll by classification, then apply your claims experience and any credits or debits. Keeping payroll estimates current avoids a large audit adjustment. Learn more about how workers comp rates work and preparing for an audit.
Industry guides for Florida employers
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Florida workers comp FAQ
Is workers comp required in Florida?
Florida generally requires construction businesses with one or more employees and most non-construction businesses with four or more employees to carry coverage; agricultural employers have separate thresholds. Rules and exceptions change, so confirm your situation with the state agency or an agent.
Who oversees workers comp in Florida?
The Florida Division of Workers' Compensation administers the workers compensation system in Florida.
Can I buy Florida workers comp from a private insurer?
Yes. Private insurers write workers comp in Florida, and a market of last resort is available for businesses that are hard to place.
How is workers comp priced in Florida?
In Florida, the National Council on Compensation Insurance (NCCI) provides the classification system and loss costs that insurers use to file rates. Insurers in Florida price policies from payroll by classification, then apply your claims experience and any credits or debits. Keeping payroll estimates current avoids a large audit adjustment.