Workers’ Comp Exemption In Florida: Who Qualifies? (2026)
Contributor
Reviewed By Adam Ramirez, J.D.
Editor
- What Is Workers’ Compensation in Florida?
- Who Is Exempt From Workers’ Compensation in Florida?
- Exemption Eligibility and Qualifications
- How to File a Workers’ Comp Exemption in Florida
- Renewing a Workers’ Comp Exemption
- Risks and Benefits of Choosing an Exemption
- Coverage Requirements and Penalties in Florida
- When to Seek Legal Help About Exemptions
Summary
- Workers’ comp insurance covers medical care and lost wages for hurt workers
- Non-construction companies with four or more employees must carry insurance
- Some companies may file for exemptions for individual employees
If you own a business, you probably already have several kinds of insurance; property and casualty, liability, and business interruption policies are all relatively common. Most employers in Florida are also required to carry workers’ compensation insurance.
You might be able to save money on insurance premiums if your business is one of the relatively few that qualify for a workers’ comp exemption in Florida. However, in some cases, it might be a good idea to purchase workers’ comp coverage even if you don’t have to. Here’s what to consider.
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What Is Workers’ Compensation in Florida?
With the notable exception of Texas, most states require most employers to purchase workers’ compensation insurance. Workers’ comp is a no-fault system, so an employee who gets hurt on the clock or develops an illness related to work can file a claim even if their employer was not negligent.
This system benefits both employers and employees. Employers generally don’t have to worry about facing personal injury lawsuits, and employees can receive medical care and wage replacement benefits much faster than they could by going through the court system.
Who Is Exempt From Workers’ Compensation in Florida?
Some businesses may qualify for a workers’ comp exemption in Florida. These are a few of the most common exemptions:
- Businesses in non-construction sectors with three or fewer employees
- Businesses with no employees
- Agricultural companies with five employees or fewer
- Agricultural companies with 11 or fewer seasonal workers
Certain types of businesses may be able to file for individual exemptions, meaning they can exclude specific employees from coverage. Corporations often file exemptions for company officers. This strategy can sometimes result in a business becoming exempt from workers’ compensation requirements altogether.
For example, imagine a small financial firm has five employees, counting company officers. The company successfully files for an exemption for the CEO and CFO. This brings the total eligible employee count down to three, so the company does not have to purchase workers’ comp insurance for the remaining employees.
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Exemption Eligibility and Qualifications
In some cases, meeting certain criteria can qualify your business for an exemption.
Construction-Industry Employers
The construction industry is especially dangerous for employees, so it’s subject to some of Florida’s strictest workers’ comp regulations. Employees of corporations and LLCs in the construction industry must meet the following requirements to be exempt:
- They must be registered as one of the company’s officers.
- They must have an ownership stake of at least 10%.
- The company must pay a $50 application fee.
It’s important to note that no more than three officers in a construction-related business may be exempt.
Non-Construction LLCs
If you’re part of an LLC and own at least 10% of the company, you may apply for a workers’ comp exemption. No more than 10 LLC officers can apply for exemption, though, and your business must not be within the construction industry.
Corporations, Partnerships and Sole Proprietorships
As long as they are outside the construction sector, corporations, partnerships and sole proprietorships may seek workers’ comp exemptions for company officers.
How to File a Workers’ Comp Exemption in Florida
To start the process, you must file a Notice of Election to be Exempt with the Florida Division of Workers’ Compensation. In most cases, you will need to submit documentation of your business’s structure. The easiest way to do this is to file online.
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Renewing a Workers’ Comp Exemption
Most businesses must renew their exemptions every two years. You can usually do this using the Florida Division of Workers’ Compensation online system.
Risks and Benefits of Choosing an Exemption
Workers’ compensation provides valuable benefits to injured employees and protects employers from lawsuits. The downside is that insurance premiums can be substantial. If you qualify for an exemption, you could save thousands on premiums.
However, exemptions come with risks. For instance, if an employee gets hurt on the job and you don’t have workers’ compensation insurance, they may consult a work injury lawyer and file a lawsuit against you. If the lawsuit is successful, you may lose more money than if you’d purchased workers’ comp insurance.
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Coverage Requirements and Penalties in Florida
Keep in mind that if your business is required to carry workers’ compensation insurance and the state finds out that it isn’t, your company could face significant penalties.
Typically, Florida will issue a Stop-Work Order that instructs you to stop all business operations until you’ve paid the relevant penalty. You generally must pay twice the premiums you would have paid over the past 12 or 24 months.
When to Seek Legal Help About Exemptions
Depending on your situation, you may be unsure of whether you qualify for a workers’ comp exemption in Florida. Before making any decisions, it’s wise to consult an attorney experienced in workers’ compensation law.
If you aren’t sure how to find the right attorney, ConsumerShield can help. We partner with qualified lawyers around the country, so if you need legal assistance in your area, we can match you with a nearby professional.
Whether you need the guidance of a workers’ comp attorney, a Florida personal injury lawyer, or any other legal professional, contact us for a free case review to get started today.
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Frequently Asked Questions
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Some states require employers to purchase insurance from the state itself. In Florida, you may buy insurance from private carriers licensed by Florida’s Office of Insurance Regulation.
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The average annual workers’ compensation premium in Florida is $1,149.
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Some of the main factors that influence premium rates include your total number of employees, your industry, and your claims history. Employers in risky industries like construction typically pay more, and a history of repeated claims will likely increase your premiums.
