DFS REMINDS CONSTRUCTION CONTRACTORS OF WORKERS’
COMPENSATION REQUIREMENTS
In response to hundreds of calls from homeowners and construction
contractors, both in and out-of-state, concerned about Florida requirements for
workers’ compensation insurance coverage, the Florida Department of Financial
Services is reiterating the responsibilities of contractors under state law.
Under Florida law, construction employers with one or more employees must
provide workers’ compensation coverage for their employees. Construction
employers who are corporate officers or members of a limited liability company
can exempt themselves from coverage if they obtain an exemption from the
Department of Financial Services’ Division of Workers’ Compensation. In
addition, out-of-state contractors must obtain a Florida policy or a policy
endorsed by their current carrier using Florida rates.
The department remains concerned that homeowners who employ an uninsured
contractor may be held financially responsible if an injury occurs during
repairs.
For contractors unable to secure coverage in the private market, the Florida
Workers’ Compensation Joint Underwriting Association, Inc. (FWCJUA), the state’s
insurer of last resort for workers’ compensation insurance coverage, is offering
a streamlined process for obtaining coverage. Employers who enter into a payroll
service and premium deduction program with the FWCJUA, and pay a processing fee,
will be eligible to receive a policy within one business day and will save up to
76 percent in up-front premium costs, depending on their payroll amounts. This
initiative will allow contractors, especially out-of-state contractors, to pay a
smaller portion of their premiums up front so they can quickly assist homeowners
with repairs and rebuilding. Contractors may contact the FWCJUA at 941-378-7400
or on the web at
www.fwcjua.com.
The department has, since Hurricane Charley struck in mid-August, aired radio
and television public service announcements advising contractors of their
responsibilities under the law and urging homeowners to ensure they are dealing
not only with a licensed and reputable contractor, but also one covered by
workers’ compensation insurance. The department has also distributed printed
materials and made information available on its website at
www.MyFloridaCFO.com/wc.
The skyline for October is Daytona Beach,
photo courtesy of the Daytona Beach Area Convention & Visitors Bureau.