Workers' compensation insurance for Florida contractors

Yes, in most practical cases. Florida construction-industry employers generally need workers' comp when they have one or more employees. Owner exemptions are limited and must be filed formally.

Not automatically. Florida expects out-of-state employers engaged in Florida work to have Florida-compliant coverage. We check the policy wording before work starts.

Every state except Texas requires WC once you have W-2 employees. Even Texas, while technically optional, leaves you exposed to unlimited tort liability if you don't carry it, and most general contractors won't sub to an uninsured shop. If you have even one W-2 employee doing trade work, you need it.

If a 1099 sub carries their own WC and provides a certificate, they don't hit your policy. But if a sub is uninsured and gets hurt on your job, most states make you the statutory employer, meaning the claim falls on your policy. Always collect and verify sub COIs before they start work.

WC premium = (annual payroll ÷ 100) × class rate × experience mod. Rates range from under $1 per $100 for clerical to $25+ for roofing. A $1M payroll general contractor with a 1.00 ex-mod and a mid-range blended class rate typically pays $25,000 - $60,000 per year. Roofers and demolition contractors pay materially more.

After three years of claim history, NCCI (or your state's bureau) calculates an ex-mod, a multiplier applied to your premium. 1.00 is neutral; anything below 1.00 earns you a credit (fewer / smaller claims than peers); anything above 1.00 adds a debit. A 0.80 ex-mod saves 20% of premium; a 1.30 ex-mod costs 30% extra. It's the biggest single lever you can pull over time.

Most states allow sole proprietors, LLC members, and corporate officers to exclude themselves, which drops them from the payroll calculation and lowers premium. But excluded owners have no WC coverage for their own injuries. If you exclude yourself, make sure you carry health insurance and disability coverage to fill the gap.

A ghost WC policy covers a business with no employees (or only excluded owners), purely so you can provide a WC certificate to GCs that require it. It's cheap, often $800-$1,500 per year, and solves the common problem of being uninsurable-by-contract without actually needing coverage.

The going-and-coming rule generally excludes ordinary commuting. But if you're driving between job sites, running an employer errand, or carrying tools to the site as part of the job, the injury is typically covered. Facts matter, each claim gets investigated.

WC covers employee injuries. GL covers third-party claims. They are mutually exclusive. Every contractor needs both, and neither one substitutes for the other. GC contracts almost always require certificates showing both.

A single large claim ages into your ex-mod calculation over three years. Severity hurts, but frequency hurts more, three small claims often raises the ex-mod more than one large one. This is why return-to-work programs and early claim management matter financially even for minor injuries.

Most states require WC for family employees the same as any employee, though some states carve out exemptions for spouses and minor children. Check your state's specific rule, we'll verify at bind.