Experience MOD Prevent Workers Comp Over Charges
In Florida, businesses involved in the construction industry are subject to some different rules and regulations and other businesses when it comes to workers compensation coverage.
What kinds of businesses are classified as construction? The Florida Division of Workers Compensation publishes the official list of which class codes the state considers to be in the construction industry. See a copy of this list below.
What are the workers comp requirements for a business in the construction industry? If you are in the construction industry, Florida law requires you to have an active workers comp policy or a valid exemption for workers comp. If you have an exemption on yourself as an owner of the company and you have even one employee, you must also have a workers comp policy to cover those employees. Every person working on a construction site in Florida must be covered by workers comp policy or have a valid exemption, including individuals you may bring unto the job site for a short time “just to help out”.
What’s an exemption and how does it work? An exemption excludes you as a business owner from having to buy workers comp insurance for yourself, which means you are not eligible to receive workers comp benefits if you are hurt on the job. Exemptions are valid only for the person and the company name listed on the exemption. In the construction industry, only individuals who own 10% of a corporation or limited liability company are eligible to receive an exemption. Non-owner employees are not eligible for an exemption.
How can I obtain workers comp exemption? To apply for workers comp exemption, go to the division of workers compensation website at myFloridacfo.com/division/WC and click on the box that says “Apply for an Exemption”. Construction industry exemptions cost $50 in must be renewed every two years.
What if I hire a subcontractor? Under Florida law, you are responsible for making sure all of your subs either have their own workers comp policy or have a valid exemption from workers comp. If you discover that your sub is out of compliance with workers comp requirement, you should insist that they correct the problem before you allow them back on the job site. If you allow someone to work on the job site without the proper coverage or valid exemption, your insurance company will charge you a premium for them and your insurance may be cancelled. You also expose yourself to potential fines from the State Division of Workers Compensation.
If your company has a workers comp policy and you said that work to someone with an exemption from workers comp, you need to be extra careful. If that exempt sub brings even one helper on to your job site, that helper becomes your responsibility just by stepping on the job site. You will have to pay the workers comp premium on all wages that helper is paid by yourself for the job, and your insurance carrier will probably be held responsible if that helper gets injured on the job site.
What are the requirements for out of state construction businesses doing work in Florida? An out-of-state construction business is doing work in Florida must obtain either a Florida workers comp policy or a Florida endorsement to their out of state policy to cover their operations in Florida. Out-of-state companies cannot legally work in Florida without paying Florida workers comp rates.