When Is Workers’ Compensation in Florida Required?

Workers’ compensation in Florida becomes mandatory based on your industry and your headcount. Construction: one employee. Everything else: four employees. Agriculture: six regular workers or twelve seasonal ones. That is the rule the Division of Workers’ Compensation of the Florida Department of Financial Services applies, and it decides whether you can legally staff a job tomorrow.

Long before a state investigator asks, the general contractor, the property manager or the client hiring you will ask. Get the count straight before you shop for business coverage for your company, because the answer changes what you need to buy.

What does workers’ compensation cover?

Workers’ compensation pays medical care and part of the lost wages when an employee gets hurt or sick because of the job. Fault does not matter.

A helper falls off a ladder. A cook burns her arm with hot oil. A tech wrenches his back lifting an AC unit. Ordinary days in Hialeah, Kissimmee or Fort Myers. With a policy, the insurer handles it. Without one, the owner pays.

How many employees trigger workers’ compensation in Florida?

Workers’ compensation in Florida is required from the first employee in construction, from four employees in any other industry, and from six regular workers or twelve seasonal ones in agriculture. Corporate officers and LLC members count toward those totals unless they hold a state exemption.

Construction: one employee is enough

Every construction employer with one or more employees needs coverage, according to the Florida DFS coverage requirements page. One. There is no cushion.

A two-person roofing crew is already in. So is a contractor who works alone but brings a helper on weekends. And if you are an officer of the corporation without an approved exemption, you count as an employee yourself.

Non-construction: four or more

Businesses outside construction must carry coverage once they reach four or more employees. That is what the Florida DFS employer requirements state. Corporate officers and LLC members are part of that count too.

A store with five people between the counter and the stockroom is required to have it. A restaurant with three staff plus an owner listed as officer also adds up to four. Many owners do not count themselves as employees. The law does.

Agriculture: six regular or twelve seasonal

In agriculture the duty starts at six regular employees. It also starts with twelve seasonal workers who work more than 30 days in a season or more than 45 days in the same year. That is how it reads in the Florida DFS employer FAQ.

Industry	Threshold that triggers coverage
Construction	1 or more employees (includes non-exempt officers and LLC members)
Non-construction	4 or more employees
Agriculture	6 regular and/or 12 seasonal (more than 30 days in a season or more than 45 days in the year)

My company is registered in another state. Do I need a Florida policy?

An employer from outside Florida that comes to work in the state must tell its insurance carrier. Florida must be listed in Section 3A of the policy. If it has no insurance, it needs a Florida workers’ compensation policy from a carrier approved in the state. The home-state policy only works for temporary jobs, up to 10 days in a row and 25 in a year, when that state has a reciprocity agreement.

This happens constantly with crews from Georgia or Texas coming down for a seasonal project, and with companies opening a second operation in Orlando or Tampa. Sort it out before you arrive, not in the middle of the project.

Can an owner or officer opt out of coverage?

Yes. Florida lets corporate officers and LLC members exclude themselves through a state exemption, requested online with the Division of Workers’ Compensation using the Notice of Election to be Exempt form. The exemption removes you from the policy. It covers nobody else on your payroll.

Under section 440.05 of the Florida Statutes, the exemption certificate is valid for two years from its effective date. And in the construction industry, each application or renewal costs $50.

In construction the DFS also requires proof of at least 10% ownership of the corporation or LLC plus a valid state driver license.

If you hire a helper next month, you are back under the requirement.

What proof will a general contractor ask you for?

Before letting you on the job site, the general contractor will ask for evidence of coverage. According to the DFS, the policy’s Information Page or a screen print from the DFS Proof of Coverage database works. So does a Certificate of Liability Insurance with written confirmation from the agent or carrier. With employee leasing, add the list of leased employees as of the date the subcontractor started work on that project.

No certificate, no invoice. That is why it pays to have the workers’ compensation policy in place before you win the contract, not after. The certificate is issued fast when the policy already exists. Building one from scratch with the project running is what causes the delay.

Keep a dated copy of every subcontractor certificate. If a subcontractor has no workers’ compensation for its staff, the DFS says those workers become the contractor’s employees. If one gets hurt, you pay the benefits.

Frequently asked questions

Three questions employers often ask. There are more answers in our business insurance FAQs.

Does a two-person roofing crew need coverage?

Yes. In construction, any employer with one or more employees must carry workers’ compensation, according to the Florida Department of Financial Services. A two-person crew is already over the line, and an owner listed as a corporate officer without an approved exemption counts as one of those employees.

Do owners count toward the employee total?

They do. Owners listed as officers of a corporation or as members of an LLC are included in the headcount for both construction and non-construction rules. A shop with three staff plus one officer-owner reaches four, which is the threshold outside construction.

How long does a Florida exemption last?

Two years from its effective date, under section 440.05 of the Florida Statutes. You apply online through the Division of Workers’ Compensation with the Notice of Election to be Exempt. In construction, each application or renewal costs $50 and you must show at least 10% ownership and a valid state driver license.

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