Florida · state requirements

Workers’ comp insurance in Florida

For Florida employers and contractors: when coverage becomes mandatory, who can opt out with an exemption, how stop-work orders work and what rates look like in 2026.

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What similar businesses pay

Florida small-business average: About $65 a month
Florida index rate: $1.00 per $100 of payroll
National small-business median: About $54 a month

Published benchmarks, not quotes. Your price depends on underwriting.

Cost

What workers’ comp insurance in Florida costs

About $65 a month

Florida small-business average

Insureon customer average for Florida, updated April 10, 2026

$1.00 per $100 of payroll

Florida index rate

Oregon DCBS 2024 premium rate ranking, 30th highest of 51

About $54 a month

National small-business median

Insureon median across all states, updated April 13, 2026

Florida rates have been falling. The Office of Insurance Regulation approved a 6.9% statewide decrease for new and renewal policies from January 1, 2026, the ninth consecutive yearly cut, and NCCI has proposed a further 7.4% average decrease for January 1, 2027, with a public hearing set for October 27, 2026. Oregon’s 2024 ranking, which compares states on the same mix of 50 job classes, put Florida at $1.00 per $100 of payroll, 92% of the study median. Insureon reports that its small Florida customers, most with fewer than five employees, pay about $65 a month, or $781 a year. Construction crews pay far more than offices because rates are set by the type of work each employee does.

What moves your price

The type of work your employees do: the Division of Workers’ Compensation says cost turns on payroll, job type and claims history.
Estimated annual payroll, divided by 100 and multiplied by the rate for your class, then trued up at audit.
Your experience modification factor, which adjusts premium for your claims history.
A 2% workplace safety discount and a 5% drug-free workplace discount, each renewed yearly, where you qualify.
Statewide rate changes approved each year by the Office of Insurance Regulation.
Placement in the Florida Workers’ Compensation Joint Underwriting Association, where the Division says rates are higher than the standard market.

Florida

What’s different in Florida

Construction coverage starts at one employee

Florida Statutes 440.02 brings construction businesses into the system at one employee. Construction sole proprietors, partners and independent contractors are treated as employees, so a one-person construction business generally needs a policy unless the owner forms a corporation or LLC and files an exemption.

Other businesses are covered at four employees

Non-construction employers need coverage at four employees, counting corporate officers and LLC members unless they hold an exemption. Non-construction sole proprietors and partners are not employees unless they elect coverage on form DWC-251.

Stop-work orders shut the whole business

Under Florida Statutes 440.107, failing to carry required coverage justifies a stop-work order requiring all business operations to cease, issued within 72 hours of the finding. It applies to every worksite in the state, and the order stays on the Division’s website for at least 5 years.

Penalties of twice the missing premium

The penalty is 2 times the premium you would have paid over the prior 12 months, or $1,000 if greater. It uses 24 months if you understated payroll or had an earlier order, and working in violation of the order adds $1,000 a day.

Contractors answer for uninsured subs

The Division says each subcontractor must cover its own workers, but if it does not, those workers become the contractor’s employees and the contractor pays the benefits. Rule 69L-6.032 sets the proof you must collect before work starts.

Out-of-state crews need a Florida policy

A construction employer with even one employee working in Florida needs a policy from a Florida-licensed insurer with Florida listed in item 3A. Reciprocity covers only temporary work of up to 10 consecutive days and 25 days a year.

Coverage

Coverage Florida businesses need

Workers’ compensation

Covers accidental injuries and occupational diseases arising out of employment, including medical care and lost wages. Florida law makes the employer pay the entire premium; deducting it from pay is illegal.

How workers’ compensation works →

Employer’s liability

Insureon notes that most Florida policies include employer’s liability insurance, which pays legal costs if an employee sues over a work injury.

How workers’ compensation works →

Joint Underwriting Association

If no insurer in the standard market will write your business, your agent can apply to the Florida Workers’ Compensation Joint Underwriting Association, the market of last resort, at higher rates.

How workers’ compensation works →

Employee leasing

With a licensed employee leasing company, the leasing company becomes the legal employer and provides workers’ comp for the leased workers. You must report all workers and payroll to it.

Self-insurance funds

Commercial self-insurance funds authorized by the Office of Insurance Regulation pool workers’ comp liabilities among members, and employers that can show the financial strength to pay benefits can apply to the Division to self-insure.

General liability

Covers injuries and property damage you cause to customers and the public. It does not cover injuries to your own employees.

How general liability works →

Rules

Florida requirements

Florida sets coverage by industry and headcount, and enforces it with job-site inspections. These are the main rules; check the Division of Workers’ Compensation for your situation.

Requirement	Applies to	What it means
Construction employers	1 or more employees, including non-exempt owners	Coverage required (Florida Statutes 440.02(20)); rule 69L-6.021 lists the trades that count as construction.
Non-construction employers	4 or more employees, including non-exempt officers and LLC members	Coverage required (440.02(20)); sole proprietors and partners are not counted unless they elect coverage on form DWC-251.
Agricultural employers	Farms	6 regular employees, or 12 seasonal workers working more than 30 days in a season or 45 days in a year (440.02; Division of Workers’ Compensation).
Construction exemption	Corporate officers and LLC members owning at least 10%	Up to 3 per company or affiliated group, $50 fee, valid 2 years; sole proprietors and partners cannot be exempt (440.05; Division).
Non-construction exemption	Corporate officers; LLC members owning at least 10%	Up to 10 LLC members may be exempt; apply online with the Division of Workers’ Compensation.
Subcontractor proof	Contractors	Before work starts, get the sub’s policy information page, a Proof of Coverage screen print or a certificate with written confirmation, or its exemption (rule 69L-6.032).
Broken Arm poster	Insured employers	Display the poster naming your insurer and its phone number in a conspicuous location (Division of Workers’ Compensation).
Injury reports	Insured employers	Send the insurer a First Report of Injury or Illness, form DWC-1, within 7 days of first learning of an injury (Division of Workers’ Compensation).
Uninsured penalties	Employers without required coverage	Stop-work order and 2 times the premium owed for the prior 12 months or $1,000, whichever is greater, plus $1,000 a day for working in violation (440.107).

Compare workers’ compensation options in Florida.

One application, quotes from several insurers, reviewed by a licensed agent. Start with your email and finish later if you need to.

Pay less

How to lower the cost

Apply for the 5% drug-free workplace and 2% workplace safety discounts, and renew both programs every year.
Exempt eligible officers or LLC members you do not need covered; insurers may not count a validly exempt officer in premium, though that officer loses benefits.
Confirm your class codes; the Division points employers to NCCI for classification and experience modification questions.
Collect proof of coverage or an exemption from every sub before work starts, so their workers do not become yours under Florida law.
Ask for updated quotes at renewal; statewide rate levels have been cut for nine straight years.
An independent broker that compares options from several insurers, such as Florin, can quote your payroll in the standard market before you consider the residual market.

Before you start

What underwriters ask for

Your Florida business registration and officer or member list
Any current exemption certificates and their expiration dates
A description of each role, or your current NCCI class codes
Estimated annual payroll by class, plus last year’s actual payroll
Subcontractor costs and your subs’ certificates or exemptions
Drug-free workplace or safety program documents, if you have them
Three to five years of loss runs and your experience modification

Common questions

Workers’ comp insurance in Florida: questions

Do I need workers’ comp with fewer than 4 employees in Florida?

Only if you are in construction or agriculture. Construction employers need coverage at one employee, and farms at 6 regular or 12 seasonal workers; other businesses need it at four employees, counting officers and LLC members who are not exempt.

Can a Florida sole proprietor in construction be exempt?

No. Florida Statutes 440.02 treats construction sole proprietors and partners as employees, and exemptions are only available to corporate officers and LLC members who own at least 10% of an active Florida business.

How long does a Florida construction exemption last?

Two years from its effective date under Florida Statutes 440.05. The Division charges a $50 application fee, and you apply or renew online through its Notice of Election to be Exempt system.

What does a Florida stop-work order cost?

The penalty is 2 times the premium you should have paid over the prior 12 months, or $1,000 if that is greater, and 24 months if payroll was concealed or you had a prior order. Operating while the order is in effect adds $1,000 a day.

Are independent contractors employees in Florida?

In construction, yes: the Division says Florida law does not allow independent contractors in construction. Outside construction, a worker must meet at least four of the statute’s criteria in 440.02 to count as independent.

Are Florida workers’ comp rates going down?

Yes. The Office of Insurance Regulation approved a 6.9% average decrease effective January 1, 2026, the ninth in a row, and NCCI has proposed a 7.4% decrease for January 1, 2027, pending a hearing on October 27, 2026.

Can I take workers’ comp premium out of employees’ pay?

No. The Division says the employer must pay the entire premium, and deducting it from employees’ pay is against the law.

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Sources (15)

Figures are published third-party estimates, not quotes. Coverage depends on policy terms and underwriting, and rules vary by state. Updated October 2026.