Construction Company Requirements for Workman’s Comp

In Florida, businesses involved in the construction industry are subject to different rules and regulations than other businesses when it comes to the required type and scope of workers’ compensation coverage the business must carry. This is due largely to the fact that injuries to construction company employees are among the most prevalent of employers in any industry. Below are some of the most frequently asked questions relating to Florida law pertaining to the construction industry and the obligations placed on Florida construction companies as it relates to workers’ compensation coverage required under Florida law.

  • The Florida Department of Financial Services’ Division of Workers Compensation publishes the official list of which class codes the state considers to be in the construction industry.
  • This list is available at the Department’s website here.

  • An exemption means that you or your construction company have had permission granted by the State of Florida to legally elect not to purchase workers’ compensation coverage for yourself as the owner of the company.
    • This does leave you as the company owner without any protection if you are injured on the job, but can reduce your business’s overall workers’ compensation premium.
  • Florida law only permits individuals who own 10% or more of a corporation or a limited liability corporation that is engaged in the construction business to apply for and receive an exemption.

  • Florida state law requires companies in the construction industry to either
    • (i) Have an active workers’ compensation policy that provides coverage to the business and all its employees in the event of a workplace injury; or
    • (ii) A valid exemption to Florida law requiring this policy.
  • Without exception, every individual who comes onto a work site in Florida to perform work must be covered by a valid workers’ compensation policy, no matter if the individual will be working on the construction for five months, five hours, or five minutes.

  • Under Florida law, a construction company owner who hires subcontractors to perform work for which the owner’s company has contracted may only hire subcontractors who
    • (i) have their own workers’ compensation policy or
    • (ii) have a valid exemption.
  • A construction company owner should never allow a subcontractor or any employees of a subcontractor to perform work on a construction site without first ensuring the subcontractor is in compliance with Florida worker’s compensation laws!
  • Failure to do so can result in the following:
    • Fines from the state
    • Cancellation of your own workers’ compensation policy or an (often substantial) increase in your premium
    • Legal liability for any injuries to employees or workers of the subcontractor which occur on the job site

  • To apply for an exemption from Florida’s workers’ compensation coverage requirements for construction companies, the owner of a qualifying construction company can go here, click on the radio button for Apply or Renew an Exemption and completing an application.
  • Exemptions cost $50 and are good for two years.

  • An out-of-state construction company that performs any work in Florida must do one of the following:
    • (i) Obtain a separate Florida workers’ compensation policy; OR
    • (ii) Obtain an endorsement to the construction company’s existing workers’ compensation policy to cover any injuries which occur in Florida.
  • It is against Florida law for an out of state construction company to perform work in Florida without the required coverage under Florida law.