If you own a business in Florida, you’ve probably wondered at some point: Do I actually need workers’ comp?
The answer depends on what kind of business you run, how many people work for you, and how your company is set up. A small boutique, a roofing company, and a landscaping business aren’t all treated the same under Florida law.
Even if you’re not required to carry workers’ comp, that doesn’t mean you should go without it. If someone gets hurt while working for you (or you get hurt), the costs can add up quickly. Without coverage, your business could be responsible for medical bills, lost wages, legal fees, or other expenses out of pocket. And without workers’ comp protections in place, an injured worker may be able to sue you directly.
So let’s walk through the Florida workers’ comp requirements: when coverage is required, who counts as an employee, how owner exemptions work, and why coverage may still be worth considering even if the state doesn’t require it.
Workers Comp Requirements In Florida
In Florida, workers’ comp requirements depend on your industry, your number of employees, and how your business is structured.
For many businesses, workers’ compensation is required once you have four or more employees. But that rule doesn’t apply to every business. Construction businesses have a much lower threshold, agricultural businesses have their own requirements, and out-of-state businesses working in Florida may need to take extra steps before work begins.
Here’s how the main requirements break down.
Non-Construction Businesses
Most Florida businesses outside the construction industry are required to carry workers’ compensation insurance if they have four (4) or more employees.
Corporate officers and LLC members count toward that total unless they have a valid workers’ comp exemption. Sole proprietors and partners in a non-construction business usually don’t count as employees unless they choose to be included on the policy.
So, for example, if your business has four employees, you’ll usually need workers’ comp. If one of those people is an owner or officer with a valid exemption, that can change the count, but it’s not something you’ll want to guess on. We’ll talk more about exemptions later.
Construction Businesses
Construction businesses have stricter rules.
If you’re in the construction industry in Florida and have one (1) or more employees, workers’ comp is required. Corporate officers and LLC members are included in that count unless they have a valid exemption.
Contractors also need to be careful when hiring subcontractors. Before work begins, you’re responsible for making sure your subcontractors have the workers’ comp coverage they’re required to carry. If they don’t, their workers may be treated as your employees.
Yes, when your annual audit comes around—as it does for all WC policies—your uninsured sub-contractors are suddenly added to your bill.
That means if someone gets hurt on the job, you could be responsible for the benefits tied to that injury, illness, or fatality too.
Agricultural Businesses
In Florida, agricultural employers are generally required to carry workers’ comp if they have:
- Six (6) or more regular employees, and/or
- Twelve (12) or more seasonal employees who work more than 30 days in a season or more than 45 days in the same calendar year.
Out-of-State Employers
If your business is based outside Florida but you have employees working here, don’t assume your current policy is sufficient.
Out-of-state employers need to notify their insurance carrier that they’re working in Florida. If your existing policy doesn’t provide the required coverage for Florida work, you’ll need to get a Florida workers’ comp policy before your employees begin working here.
Businesses With Water Exposure May Need Additional Coverage
Employee count isn’t the only thing that can affect your workers’ comp coverage. In Florida, certain work on or near the water can create coverage issues that many business owners don’t see coming.
If your employees work on or around docks, marinas, ports, boats, seawalls, or navigable waterways, a standard workers’ comp policy may not be enough. Some jobs fall under federal maritime laws, which may require specialized coverage such as Longshore and Harbor Workers’ Compensation Act (LHWCA) coverage.
And it’s not just marine businesses that need to pay attention. Dock builders, waterfront maintenance companies, contractors working at marinas, and landscapers who maintain waterfront properties can all have water-related exposures.
Maritime coverage may affect your premium, but it’s there for a reason. Without the proper coverage in place, certain water-related claims may not be covered under a standard workers’ comp policy.
If your business does any work on or around the water, it’s worth reviewing your operations to make sure your workers’ comp policy covers the exposures you actually have.
What Counts as “Construction” in Florida?
When most people hear “construction,” they picture roofers, electricians, plumbers, or general contractors.
And yes, those businesses are included. But Florida’s definition of construction is broader than many business owners realize. For workers’ comp purposes, your business may fall under the construction category if any part of your operations fits one of Florida’s construction classification codes.
That list includes plenty of obvious trades, but it also includes work that may surprise you, such as:
- Landscaping
- Door and window installation
- Cabinet or interior trim installation
- Carpet and laminate flooring installation
- Fence installation or repair
- Burglar and fire alarm installation or repair
- Sign installation, maintenance, repair, removal, or replacement
- Construction debris removal
Florida’s official list of construction classification codes is long, so we won’t repeat the whole thing here. But if your business does any kind of hands-on trade work, even if you don’t think of yourself as a “construction company,” it’s a good idea to confirm how your business is classified before making a decision about workers’ comp.
What Counts as an “Employee”?
When you’re figuring out whether your business needs workers’ comp, don’t only count full-time employees.
Part-time employees count, too. So if you run a retail store with eight part-time employees, your business can’t fly under the radar just because no one is working full-time. You have eight employees, which means workers’ comp is required.
Seasonal and temporary workers can count as well. If you bring on extra help during busy seasons, special events, or holidays, those workers may still affect whether you’re required to carry coverage. Agricultural businesses have their own seasonal employee rules, but other businesses shouldn’t assume seasonal help is excluded.
The same goes for remote employees. If someone is your employee, the fact that they work from home doesn’t automatically remove them from your employee count. Remote work may affect how the policy needs to be written, especially if employees are working in another state, but it doesn’t erase the need to think about workers’ comp.
Paid interns and trainees should usually be treated like employees for workers’ comp purposes. Volunteers and unpaid interns are more complicated, but it’s worth asking before you assume they don’t count.
The safest rule is this: if someone works for your business, include them in the conversation. Don’t wait until after an injury to find out they should’ve been covered.
How Workers Comp Exemptions Work in Florida
Some Florida business owners can apply for a workers’ comp exemption. But an exemption doesn’t mean the whole business is exempt, and it doesn’t remove your responsibility to cover employees who still need coverage.
To be clear: exemptions only apply to a qualifying owner, officer, or LLC member who is choosing not to be covered by workers’ comp themselves. That means if they get hurt on the job, they wouldn’t be able to turn to workers’ comp for their own medical bills or lost wages.
For non-construction businesses, corporate officers and LLC members count toward the four-employee threshold unless they have a valid exemption. Sole proprietors and partners are usually treated differently and generally don’t count as employees unless they choose to be included on the policy.
Before relying on an exemption, make sure you know who is exempt, who still needs coverage, and what that exemption actually means for your business.
What If You’re Not Legally Required to Carry Workers Comp?
Finding out you’re not legally required to carry workers’ comp can feel like good news. After all, no one wants to buy a policy they don’t need.
But there’s a difference between not being required to carry coverage and not having any risk or need.
If someone gets hurt while working for your business, the costs can add up quickly. Medical bills, lost wages, disability, legal fees, and settlements are all very real and very costly. Without workers’ comp, your business would have to deal with those costs out-of-pocket.
And no, health insurance doesn’t solve the problem. Many health insurance policies exclude or limit coverage for work-related injuries because those claims are usually expected to go through workers’ comp. Even if health insurance does pay for some of the medical treatment, your employee still has the right to file a lawsuit against you for lost wages and deductibles.
Going without workers’ comp can also make it harder to get certain jobs. Some clients, landlords, vendors, project owners, or general contractors may require a Certificate of Insurance showing workers’ comp coverage before they’ll work with you. In that case, being legally allowed to go without coverage doesn’t help much if the contract requires it.
So if you’re below Florida’s requirement, or if an exemption changes your employee count, don’t treat that as an automatic reason to skip coverage. It’s still worth carrying workers’ comp to protect your business, your employees, and your ability to keep taking on work.
Get Workers Comp Coverage That Fits Your Florida Business
Even when workers’ comp isn’t required, it’s still one of the smartest ways to protect your business. Compared to the cost of paying for a workplace injury out of pocket, workers’ comp is more affordable than many business owners expect.
At Harry Levine Insurance, we take the time to get to know your business before recommending coverage. We’ll look at the kind of work you do, who works for you, what your contracts require, and where your biggest risks may be hiding.
Whether you’re required to carry workers’ comp or simply want to make sure your business is protected, we’re here to help you understand your options.
Contact Harry Levine Insurance today to request a free workers’ compensation insurance quote.
