Florida Contractors Guide to Workers Compensation

What Are Florida's Workers' Comp Rules for Contractors?

If you are a contractor or subcontractor working in Florida's construction industry, workers' compensation is not something you can afford to ignore. Whether you have been on the job for decades or you are just getting started, understanding the rules around Florida construction workers' comp is critical to protecting your business and your bottom line.

This guide walks through what counts as "construction," who needs coverage, how exemptions work, and what to look out for when hiring subs. Augustyniak Insurance Group is an independent agency in Jacksonville that writes workers' comp for contractors across Florida and Georgia. For the full picture on rates, payment options, and how premiums are calculated, see our Florida workers' comp insurance guide. For your other commercial coverage needs — general liability, commercial auto, bonds — visit our business insurance hub.

What Counts as "Construction" in Florida?

Florida does not treat all industries the same when it comes to workers' comp — and construction has its own set of strict rules.

Florida defines construction by NCCI class codes. This includes everything from general contracting to plumbing, electrical, framing, drywall, excavation, HVAC, and more. If you are unsure whether your business falls into that category, reach out — we will help you double-check.

Do Florida Construction Businesses Need Workers' Comp?

Yes — no exceptions.

If your business operates in the construction industry, you are required by law to either carry an active workers' compensation insurance policy, or have a valid workers' comp exemption on file if you are the owner.

If you have exempted yourself but hire even one employee — even part-time, even for a single day — you still need a workers' comp policy. Everyone on a construction site must be either covered by a valid policy or have a current, approved exemption.

What Is a Workers' Comp Exemption in Florida?

A workers' comp exemption lets certain business owners opt out of buying coverage for themselves. But there are two things to understand: it covers the individual person, not the business, and it means you are not eligible for benefits if you are injured on the job.

In Florida's construction industry:

• Only owners of corporations or LLCs who own at least 10% of the company can apply.
• Employees are not eligible for an exemption — only owners.
• No more than three officers or members can be exempt per company.
• The exemption covers only the named individual — not the company, not other workers, and not anyone the owner brings onto a job site.

You can apply online through the Florida Division of Workers' Compensation. It costs $50 and must be renewed every two years. Apply here.

Are You Responsible for Your Subcontractors' Workers' Comp?

Yes. Hiring subcontractors might feel like outsourcing the responsibility, but that is not how Florida sees it.

You are legally responsible for ensuring each subcontractor on your job has their own valid workers' comp policy or a valid exemption certificate. If you skip this step and someone gets injured, you may be responsible for both the claim and the added premium at audit.

How to Verify a Subcontractor's Workers' Comp Coverage

1. Ask for a Certificate of Insurance (COI) showing workers' comp — not just general liability.
2. If they claim an exemption, request the certificate and confirm it is active, issued in the correct business name, and not expired.
3. Double-check using Florida's state databases:

• Proof of Coverage Database — shows active policies and exemptions
• Construction Policy Tracking Database — alerts you if coverage lapses or exemptions expire

What Should Contractors Know About PEOs?

Some subcontractors lease workers through a Professional Employer Organization (PEO). In those cases, the PEO — not the sub — is the employer of record. But coverage only applies to employees the PEO has officially accepted onto its roster.

If a worker is not registered with the PEO and gets hurt on your job, you are on the hook.

If you work with a sub using a PEO:

• Ask for a list of employees officially covered by the PEO's workers' comp policy.
• Only allow those specific workers on your job site.
• Understand that the PEO's policy does not cover casual labor, day workers, or helpers the sub brings without registering them.

For a deeper look at PEO trade-offs, see the PEO section in our Florida workers' comp insurance guide.

How Much Does Workers' Comp Cost for Florida Contractors?

Rates vary dramatically by trade. These are the official 2026 NCCI Florida workers' comp rates per $100 of payroll, effective January 1, 2026:

• Plumbing (Code 5183): $2.74 per $100 — a plumber with $150K payroll pays roughly $4,270/yr
• Electrical wiring (Code 5190): $2.97 per $100 — $4,615/yr at $150K payroll
• HVAC (Code 5537): $3.00 per $100 — $4,660/yr at $150K payroll
• Painting (Code 5474): $4.48 per $100 — $6,880/yr at $150K payroll
• Carpentry / Framing (Code 5645): $7.69 per $100 — $11,695/yr at $150K payroll
• Masonry (Code 5022): $5.22 per $100 — $7,990/yr at $150K payroll

Every policy also includes a $160 expense constant. All figures assume a 1.0 experience mod. For the full rate table with 25+ class codes and costs at three payroll levels, see our Florida workers' comp insurance guide.

How Do Florida Contractors Stay Compliant?

Workers' comp is not just a checkbox — it is how Florida contractors protect their people, their projects, and their profits. For a complete look at contractor coverage beyond workers' comp — including general liability, tools and equipment, and bonds — see our contractors insurance page. Here is the workers' comp compliance checklist:

• Carry an active policy if you have any employees — even one part-time worker.
• File your exemption if you qualify, and set a reminder to renew it every two years.
• Verify every sub's coverage before they start work — collect COIs and check the state databases.
• Keep a COI folder for every job. When audit time comes, you will have proof that your subs were insured.
• Classify employees correctly. Field workers and office staff have different class codes and different rates. Getting this right saves money and prevents audit surprises.
• File your Sunbiz Annual Report by May 1st every year to keep your business and exemptions active.

Susan Augustyniak, CIC

Vice President, Augustyniak Insurance Group

Certified Insurance Counselor with 25+ years in the industry. Susan leads the Augustyniak Insurance team in Jacksonville, helping Florida contractors navigate workers' compensation requirements, exemptions, and subcontractor compliance. Published July 2025. Last reviewed April 2026.

Florida Contractor Workers' Comp FAQ

Do Florida contractors need workers' comp with just one employee?

Yes. In the construction industry, Florida requires workers' comp coverage if you have even one employee. This is stricter than the four-employee threshold for non-construction businesses.

Can a contractor exempt themselves from workers' comp in Florida?

Owners of corporations or LLCs who own at least 10% of the company can file for an exemption through the Florida Division of Workers' Compensation. It costs $50 and must be renewed every two years. No more than three officers can be exempt per company. The exemption only covers you — not your employees.

What happens if my subcontractor does not have workers' comp?

Their payroll gets added to your policy at audit, and you pay the premium. Worse, if one of their workers gets injured on your job, the claim can hit your policy. Always collect certificates of insurance before work begins and verify them using the Florida state database.

Does a subcontractor's exemption cover their employees?

No. An exemption only covers the individual named on the certificate. If that subcontractor brings employees, helpers, or day workers to your job site, those people must be covered by a separate workers' comp policy or their wages become your responsibility at audit.

What Florida contractor class codes have the highest workers' comp rates?

Roofing has the highest.  Residential carpentry and framing (Code 5645)is at $7.69 per $100 of payroll. Masonry (5022) is $5.22. Painting (5474) is $4.48. HVAC (5537) is $3.00. For the  rate table with 25+ class codes, see our Florida workers' comp insurance guide.