In Florida, who needs Workers' Compensation Coverage

• If you are in an industry, other than construction, and have four (4) or more employees, full-time or part-time, you are required to carry workers' compensation coverage.
• If you are in the construction industry, and have one (1) or more employees (including yourself), you are required to carry workers' compensation coverage.
  (Employee includes: Corporate officers, and for construction industry employers, limited liability company members 440.02(9), sole proprietors, and partners.)

Florida Workers' Compensation Exemption

Up to three (3) corporate officers, owning at least 10% of the corporation,
or members of an LLC may elect to be exempt.

Is Workers' Compensation Exemption for you?

• Job injuries do happen.  Will your company be able to afford to pay for any injuries sustained by yourself or your employees?  Most health insurance policies do not cover injuries sustained on the job, so your company will be responsible for paying all the medical bills associated with an accident on the job.
• Does it make sense for your company to allow up to two (2) other people to buy at least ten percent (10%) each of your company?  Yes, they must purchase stock in your company and hold at least 10% ownership to file for exemption.
• If your company will bid on commercial projects, some companies require workers compensation insurance no matter what.

Key Exemption Eligibility Information

An individual, as an officer of a corporation, who elects to be exempt may not recover workers’ compensation benefits. Eligibility requirements and documentation which must be submitted with the exemption application are detailed in 440.05 and outlined below.

Non-construction industry corporate officer:

• The corporation must be registered with the Florida Department of State, Division of Corporations- 440.05 (11)**.
• The applicant must be listed as an officer of the corporation in the records of the Florida Department of State, Division of Corporations- 440.02 (15) (b) (2).
• There is no limit to the number of corporate officers eligible for exemption.
• There is no application fee.

Construction industry corporate officer, including a member of a limited liability company (LLC) 440.02 (9)

• The corporation must be registered with the Florida Department of State, Division of Corporations - 440.05 (11)**.
• The applicant must be listed as an officer of the corporation in the records of the Florida Department of State, Division of Corporations - 440.05 (11).
• The applicant must own at least 10 percent of the stock of the corporation as evidenced by a stock certificate or in the case of an LLC a notarized statement attesting to the minimum 10 percent ownership - 440.02 (9).
• The applicant must list all certified or registered licenses issued to you pursuant to Chapter 489, Florida Statutes
• A $50.00 application fee is required - 440.05 (8) (a).
• No more than three officers of a corporation (including LLC) or of any group of affiliated corporations (including LLCs) may elect to be exempt 440.02 (15) (b) (2).

Section 440.02(17)(b)2, Florida Statutes states:
"All private employments in which four or more employees are employed by the same employer or, with respect to the construction industry, all private employment in which one or more employees are employed by the same employer."

Section 440.02(8), Florida Statutes states:
" 'Construction industry' means for-profit activities involving any building, clearing, filling, excavation, or substantial improvement in the size or use of any structure or the appearance of any land. However, 'construction' does not mean a homeowner's act of construction or the result of a construction upon his or her own premises, provided such premises are not intended to be sold, resold, or leased by the owner within 1 year after the commencement of construction. The division may, by rule, establish standard industrial classification codes and definitions thereof which meet the criteria of the term "construction industry" as set forth in this section."