Florida Workers Compensation Requirements

Construction industry: Coverage is required as soon as you have one or more employees , including the owner. This is the strictest threshold in the state, and it applies to general contractors, subcontractors, and specialty trades alike.
Non-construction industries: Coverage is required when you have four or more employees (full-time or part-time combined).
Agricultural employers: Coverage is required when you have six or more regular employees or twelve or more seasonal workers who work more than 30 days in a season but no more than 45 days total.
Corporate officers: Officers of a corporation are counted as employees. However, up to three officers of a corporation who each own at least 10% of the stock can elect to exempt themselves from coverage.
Sole proprietors and partners: They are not automatically covered and must elect to be included if they want coverage to apply to themselves personally.

Medical benefits: All authorized medical treatment related to the work injury is covered with no dollar cap, as long as treatment is provided by an authorized treating physician.
Temporary total disability (TTD): If an employee cannot work at all while recovering, they receive 66.67% of their average weekly wage , up to the state's maximum weekly benefit (updated each year by the Department of Financial Services).
Temporary partial disability (TPD): If an employee returns to work at reduced hours or a lighter duty role, they may receive a partial wage benefit to make up part of the difference.
Permanent impairment benefits: Once the employee reaches maximum medical improvement, a physician assigns an impairment rating, and benefits are paid based on that rating.
Death benefits: In the event of a fatal work injury, dependents may receive up to $150,000 in death benefits plus up to $7,500 for funeral expenses.

Stop-work orders: The state can issue an immediate stop-work order, shutting down all business operations until coverage is secured. For a contractor mid-project, this can cost tens of thousands of dollars in delays alone.
Financial penalties: The penalty is typically twice the amount of the premium that would have been owed for the period of non-compliance, going back up to two years. Minimum penalties start at $1,000 .
Personal liability: If an employee is injured while you are uninsured, you can be held personally liable for all medical costs and lost wage benefits, with no cap.
Criminal charges: Knowingly failing to carry required coverage can rise to a first-degree misdemeanor or higher in some circumstances.

Payroll: Total estimated annual payroll for each classification of employee. Higher payroll means higher premium.
Class code rate: Each type of work carries a rate per $100 of payroll. Roofing (class code 5551) has one of the highest rates in Florida because of injury frequency. Clerical workers (class code 8810) carry a very low rate. The difference can be substantial.
Experience modification factor (EMR): Once your business has at least three years of claims history, NCCI assigns an EMR. A clean claims record results in an EMR below 1.0, which reduces your premium. Frequent or severe claims push it above 1.0 and increase what you pay.

Private insurance carriers: The most common route. You purchase a policy through a licensed insurer, and premiums are based on your payroll and class codes. Rates can vary between carriers, which is one reason working with an independent agent often saves money.
Florida Workers' Compensation Joint Underwriting Association (FWCJUA): This is the state's insurer of last resort for employers who cannot find coverage in the standard market. Premiums are typically higher here, so it is worth exhausting the standard market first.
Self-insurance: Large employers with strong financials can apply to self-insure, paying claims directly rather than through a policy. The state requires significant financial documentation and a security deposit.

Employers liability coverage: This is typically included as Part Two of a workers comp policy. It covers you if an employee or their family files a lawsuit claiming the injury resulted from employer negligence, outside the normal workers comp system.
General liability insurance: Workers comp covers your employees; general liability covers third-party bodily injury and property damage. Most businesses need both. If you are still building out your commercial coverage, a Business Owners Policy (BOP) bundles several key coverages together efficiently.
Commercial umbrella: For businesses with significant exposure, an umbrella policy extends your liability limits well beyond what any single policy provides.

Garland Insurance is an independent agency serving Lakeland and the surrounding Polk County area. Being independent means we are not locked into one carrier's products. We compare options across multiple insurers to find coverage that fits your payroll, your industry, and your budget. Whether you are a sole proprietor figuring out your obligations for the first time or an established contractor shopping your renewal, we can help you understand exactly where you stand and what you owe under Florida law.