Division of Workers' Compensation
Key Coverage And Exemption Eligibility Requirements
Key Coverage Requirements
- An employer engaged in the construction industry that
employs one or more part or full time employees or an employer
in the non-construction industry that employs 4 or more part or
full time employees must have Florida workers’ compensation
insurance. Employee includes: Corporate officers, and for
construction industry employers, limited liability company
members
440.02(9), sole proprietors, and partners. Corporate
officers, which for construction industry employers, include s a
member of a limited liability company are eligible to elect to
be exempt from the provisions of Chapter 440.
- An employer in the construction industry shall
require any sub-contractor who sub-contracts work from an
employer to provide evidence of Florida workers’ compensation
insurance. If the sub-contractor has a valid exemption, then the
sub-contractor shall also provide a copy of his or her
certificate of exemption to the employer
440.10 (c).
- A change in job duties performed by employees or an increase
in the amount of payroll of a business must be reported
to the insurance company.
- If an employer has secured workers’ compensation coverage
for his or her employees by entering into an employee leasing
arrangement, the employer must specifically identify coverage
for each and every employee. The employer must notify the
employee leasing company of the names of all the covered
employees and any additional employees that are working on a
jobsite that may have been excluded from the employee leasing
arrangement. Any change in job duties performed by the employees
must also be reported to the employee leasing company.
Out-of-State Contractors Requirements
- An out-of-state employer engaged in the construction
industry must immediately notify his or her insurance company
and, or insurance agent that it has employees that are engaging
in work in Florida..
- An out-of-state construction industry employer, who has
employees engaged in work in Florida, must either obtain a
Florida workers’ compensation insurance policy or an endorsement
must be added to the out-of-state contractor’s policy that lists
Florida in section 3.A. of the policy.
- A Florida construction employer (contractor) engaged in work
in this state who contracts with out-of-state employer
(sub-contractors), must require proof of a Florida workers’
compensation policy or an endorsement to the out-of-state
employer’s policy that lists Florida in section 3.A. of the
policy. If the out-of-state employer does not provide proof of a
Florida workers’ compensation policy or of an endorsement to the
policy, or does not have a valid workers’ compensation
exemption; the Florida employer (contractor) must contact his or
her workers’ compensation insurance carrier to update his or her
policy to include such sub-contractor and any persons that are
employed by such sub-contractor
440.10.2 (g).
Where to Find Workers Compensation Insurance
Coverage?
Contact an insurance agent. You can also contact the following
insurance agent associations:
- Florida Association of Insurance Agents at
www.faia.com
- Professional Insurance Agents of Florida at
www.piafl.org/wc-info.pdf or call (850) 893-8245
- Latin American Association of Insurance Agents at
305-477-1442
If you cannot obtain coverage through the standard workers’
compensation market, you may contact the Florida Workers’
Compensation Joint Underwriting Association (FWCJUA) at 941-378-7400
or visit their website at
www.fwcjua.com. The workers’
compensation rates in the FWCJUA will be higher than the rates in
the standard market.
You may also consider entering into an employee leasing
arrangement with a professional employer organization that has
secured workers’ compensation coverage on behalf of its clients.
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).
**Out-of-state contractors that are corporations or
limited liability companies can qualify as foreign corporations or
foreign limited liability companies by filing specific forms and
documentation with the Florida Division of Corporations. For more
information regarding the foreign qualification requirements, call
(850) 245-6051. The forms can be accessed at
www.sunbiz.org.
How to Obtain a Construction Industry Exemption
Application
- The Notice of Election to be Exempt (for DWC 250) can be
obtained from our website at
http://www.myfloridacfo.com/WC/forms.html#6. Click on form “DWC
250”. Click on “DWC 250 Instructions” to view the instructions
for completing.
- For additional information about workers’ compensation
exemptions, please call customer service at 1-850-413-1601.
Division Enforcement Provisions (Section
440.107, F.S.)
- The Florida Division of Workers’ Compensation is responsible
for enforcing employer compliance with the coverage requirements
of the workers’ compensation law. Compliance investigators have
the authority to conduct on-site inspections of job sites to
ensure employer compliance. Investigators can also request an
employer’s business records. An employer must produce the
required business records within five business days of the
division’s written request for records. If the employer fails to
respond to the request within five business days, the division
will issue a stop work order upon the employer requiring the
employer to cease all business operations in the state.
- A stop work order will also be issued to any employer who is
required to secure Florida workers’ compensation coverage but
fails to do so. A stop work order will also be issued in cases
where an employer may have a workers’ compensation policy but
understates or conceals payroll, misrepresents or conceals
employee duties or fails to utilize Florida’s class codes and
workers’ compensation rates.
- In order for the division to release a stop work order, an
employer must provide evidence that it has come into compliance
and has paid the monetary penalty, or entered into a payment
agreement with the division.
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