How do I get a Florida workers’ comp exemption for construction?

Who can get a construction exemption

In Florida, a construction business with even one employee must carry workers’ compensation, under the definition of employment in section 440.02 of the Florida Statutes. Officers of a corporation and owners of an LLC count as employees unless they file an exemption. The Florida Division of Workers’ Compensation lists these eligibility rules for construction applicants:

• The corporation or LLC must be registered and active with the Florida Department of State, Division of Corporations.
• Corporate applicants must be listed as an officer in the state’s records.
• You must attest to owning at least 10% of the business.
• No more than three officers of a company, or of a group of affiliated companies, may be exempt.
• You must pay a $50 application fee.
• You cannot be tied to an active stop-work order, or be affiliated with someone delinquent on a stop-work penalty.

Sole proprietors and partners cannot be exempt

The exemption is available only to corporate officers and LLC members. Section 440.02 says a sole proprietor or partner engaged in the construction industry is an employee for workers’ comp purposes, and so is an independent contractor doing construction work. In practice, a sole proprietor or partnership that wants to work in Florida construction without a policy usually has to form a corporation or LLC first, or else buy coverage.

Construction is also treated far more strictly than other industries. The table compares the two sets of rules.

How to apply, step by step

The Division of Workers’ Compensation takes applications and renewals through its online Notice of Election to be Exempt system. Section 440.05 sets out what the notice must contain.

• Confirm your company is active on the Division of Corporations’ records and that you are listed as an officer or member.
• Have a valid driver’s license ready; the division accepts a license that has been expired for no more than 30 days.
• Gather your company’s registration number and federal tax ID, any Florida contractor licenses you hold and your ownership percentage.
• Complete the division’s online workers’ comp coverage and compliance tutorial, which the statute requires.
• Submit the notice online, pay the $50 fee and sign it personally. Signing for someone else can be a third-degree felony.
• Print your certificate once it is issued and keep copies for general contractors and permit offices.

What the exemption does and does not do

Once issued, the exemption means you are not treated as an employee of your business, so you cannot collect workers’ comp benefits if you are hurt on the job. Section 440.05 also says insurers may not count a validly exempt officer when calculating premium. Make sure your health insurance or disability coverage would actually pay for a work injury before you rely on the exemption.

The certificate covers only the person named on it, not the business. It lists a specific company, and you need a new certificate if you work for a company that is not listed on it. When you apply, you also certify that any employees of the company are covered by workers’ comp, so the exemption never replaces a policy for your crew. The certificate also is not a contractor license, and the statute requires it to say so on its face.

Keeping your exemption valid

Under section 440.05, a notice takes effect when the division issues it or 30 days after the division receives it, whichever comes first. Certificates are valid for 2 years, and the division must send a reminder at least 60 days before expiration to the mailing or email address it has on file. Keep that contact information current and renew before the date printed on the certificate.

The division must revoke a certificate if you no longer meet the requirements, for example if your ownership drops below 10% or the company becomes inactive with the state. If you hire employees, buy a policy before they start work.

Penalties for working without coverage or an exemption

Florida enforces these rules on job sites. Under section 440.107, the state can issue stop-work orders, and an employer that failed to carry required coverage is assessed a penalty of 2 times the premium it would have paid over the preceding 12 months, or $1,000, whichever is greater. Running your business in violation of a stop-work order adds $1,000 a day.

The exemption matters to general contractors too. Section 440.02 counts people paid by a construction contractor as subcontractors as that contractor’s employees, unless the subcontractor has a valid exemption or its own coverage. That is why most general contractors will ask for a current exemption certificate or a certificate of insurance before you start work.

When buying a policy makes more sense

An exemption is the cheapest way to comply if you are the only person working, but it leaves your own injuries uncovered and stops being enough the day you hire someone. Some general contractors and property managers also require their subcontractors to carry a policy regardless of exemption status.

Florida premiums have been falling. The Florida Office of Insurance Regulation approved a 6.9% overall rate decrease for new and renewal policies starting January 1, 2026, the ninth year in a row of decreases. Your actual price still depends on your trade classification, payroll and claims history. A broker such as Florin can compare workers’ comp quotes from several insurers if you need a policy for employees or for yourself.