LICENSED INDEPENDENT COMMERCIAL BROKER | JASON LOPEZ | FL LIC #G280136
Workers’ Compensation Insurance in Florida
Required for Many Florida Employers, Starting With the First Employee in Construction
Your payroll, job classifications, and claims history all affect what you pay.
If you are looking at workers' compensation in Florida, this page covers who has to carry it, what it pays for, and why two businesses the same size can be quoted very differently. I am Jason Lopez, an independent broker in Miami.
What Workers’ Compensation Insurance Covers
Workers’ compensation can pay authorized medical expenses and wage-replacement benefits when an employee suffers a covered work-related injury or illness. In Florida, temporary disability benefits are generally based on a portion of the worker’s wages and are subject to statutory rules and limits.
Workers’ compensation also provides important protection for the employer. Florida law generally makes workers’ compensation benefits the primary remedy for covered workplace injuries, although exceptions can apply. That is another reason I would not treat the policy as just an employee benefit.
Who Florida Requires to Carry It
Florida’s requirements depend on the type of business. Non-construction employers generally must carry workers’ compensation when they have four or more employees, including non-exempt business owners. Construction employers generally must carry coverage with one or more employees. Agriculture has separate employee thresholds.
Florida’s workers’ compensation requirements vary by industry, employee count, and business structure. You can review the current requirements directly through the Florida Department of Financial Services Division of Workers’ Compensation.
Certain corporate officers and LLC members may qualify for an exemption, but the exemption applies to the individual, not automatically to the business. I would verify the exemption before relying on it when determining whether coverage is required.
How Your Premium Is Calculated
Workers’ compensation pricing is driven largely by payroll, the type of work employees perform, and the employer’s claims history. Once a business qualifies for experience rating, an experience modification factor can also affect the premium.
Classifications matter because different types of work carry different rates. If employees are assigned to the wrong classification or payroll estimates are inaccurate, the difference may surface at audit rather than when the policy is first quoted.
At the policy audit, the insurer may reconcile estimated payroll and classifications with what actually occurred during the policy term. Depending on the results, the final premium can increase or decrease.
Frequently Asked Questions
Do I need to worry about workers’ compensation if I use subcontractors instead of employees?
Yes. Calling someone a subcontractor does not automatically eliminate workers’ compensation exposure. How workers are treated can depend on the jurisdiction, the working relationship, the type of work being performed, and whether the subcontractor carries their own coverage. I want to know how your workforce is structured before I quote the policy.
Why do I need certificates of insurance from my subcontractors?
Because an uninsured subcontractor can create an exposure for your business and may also affect your workers’ compensation audit. I recommend collecting current certificates before subcontractors begin work and keeping them organized throughout the policy period.
Why can my workers’ compensation premium change after the policy is issued?
Workers’ compensation is often priced using estimated payroll and employee classifications. At audit, the carrier compares those estimates with what actually happened during the policy period. If payroll increased, classifications changed, or uninsured subcontractor exposure was discovered, you can end up owing additional premium.
What happens if my employees are assigned the wrong class code?
Class codes are tied to the type of work employees perform and can significantly affect premium. If the classification does not reflect your actual operation, the discrepancy may surface during an audit. I would rather get the classifications as accurate as possible when the policy is written than explain a large audit bill later.
What should I tell you if my workforce changes during the year?
Tell me when you hire employees, enter a new state, add a different type of work, significantly change payroll, or begin using subcontractors differently. Those changes can affect the policy, and it is much easier to address them during the policy period than after an audit or claim.
Tell Me About Your Payroll
If you know your estimated annual payroll, employee job duties, and whether you use subcontractors, send me the basics. I can help you determine what information the carriers will need and compare the available workers’ compensation options.