Insurance Curator Florida’s booming construction sector—stretching from Miami high-rise retrofits to massive infrastructure projects in Jacksonville—employs more than 590,000 workers. For every contractor, payroll company, or project owner involved, understanding Florida’s workers’ compensation (WC) rules is mission-critical for three reasons:
- It’s legally required the moment you hire even one employee. (myfloridacfo.com)
- WC premiums are a top-five operating cost for most trades.
- Non-compliance can shut your site down in hours and trigger six-figure penalties. (myfloridacfo.com)
This guide demystifies Florida WC for construction companies, with 2026 rate tables, real-world cost examples from top carriers, exemption strategies, penalty math, and best practices drawn from two decades of compliance audits.
Table of Contents
- Who Must Carry Workers’ Comp in Florida Construction?
- 2026 Rate Outlook & Cost Drivers
- Sample Premiums From Leading Carriers
- Penalties, Stop-Work Orders & Enforcement Trends
- Benefit Levels—What Injured Employees Receive
- Owner & Officer Exemptions
- Subcontractors, Certificates & General Contractor Liability
- Buying Coverage in Florida: Voluntary Market vs. FWCJUA
- Multi-State & Border-State Considerations
- Frequently Asked Questions
Who Must Carry Workers’ Comp in Florida Construction?
1. Employee Thresholds
| Industry | Headcount Trigger | Statutory Citation | Notes |
|---|---|---|---|
| Construction (all trades in Fla. Admin. Code 69L-6.021) | 1+ employee, including the owner | Fla. Stat. §440.02(17) | No payroll minimums |
| Non-Construction | 4+ employees | Fla. Stat. §440.02(17) | Includes corporate officers |
| Agriculture | 6 regular or 12 seasonal workers | Fla. Stat. §440.02(17)(b) | 30/45-day rule |
• Key takeaway: If your company pulls a permit for roofing, electrical, framing, excavation, or any of the 19 construction “subclasses,” you need a WC policy as soon as you hire (or 1099) your first worker. (myfloridacfo.com)
2. Corporate Officer & LLC Member Rules
• Up to three officers can elect exemption only if each owns ≥10 % of stock.
• Sole proprietors in construction cannot exempt themselves. (workerscompensationshop.com)
2026 Rate Outlook & Cost Drivers
1. Statewide Rate Change
The Florida Office of Insurance Regulation approved a 6.9 % average premium decrease on new and renewal policies effective January 1, 2026—the ninth straight annual cut. (floridatrend.com)
“This rate decrease directly translates to reduced operating costs for businesses,” ― Commissioner Mike Yaworsky, Nov 17 2025
2. How Premium Is Calculated
Premium = (Payroll ÷ 100) × Class Code Rate × Experience Mod × Schedule Credit/Debit + State Fees
3. 2026 Construction Class Code Snapshot
| NCCI Code | Trade Example | 2025 Rate ($) | 2026 Rate ($) | % Change |
|---|---|---|---|---|
| 5606 | Project Manager/Supervisor | 1.35 | 1.25 | –7.4 % |
| 5537 | HVAC Installation | 5.34 | 4.97 | –6.9 % |
| 5474 | Painting | 8.32 | 7.75 | –6.9 % |
| 5551 | Roofing | 14.78 | 13.75 | –7.0 % |
| 5645 | Residential Carpentry | 15.15 | 14.08 | –7.1 % |
Source: NCCI Florida Rate Filing & FL National Insurance Solutions. (flnational.com)
4. Location Surcharges
Although NCCI rates are statewide, carriers layer on territorial multipliers. Typical add-ons:
- Miami-Dade & Broward Counties: +3 % to +8 %
- Orlando (Orange & Osceola): +1 % to +4 %
- Tampa Bay (Hillsborough & Pinellas): flat to +2 %
5. Experience Modification Factor (MOD)
• Florida uses NCCI’s mod system (96 % of contractors are rated).
• A MOD of 0.85 trims 15 %, while 1.25 adds 25 %.
Sample Premiums From Leading Carriers
| Carrier | Niche Strength | Example Scenario (2026 Quotes) | Est. Annual Premium* |
|---|---|---|---|
| The Hartford | Mid-size GCs, safety-credit programs | $1.2 M payroll, class mix 5606/5645, MOD 0.95 | $48,300 (≈ $4.03 per $100) (thehartford.com) |
| Travelers | Heavy infrastructure & wrap-ups | $4 M payroll road contractor, class 5506, MOD 0.88 | $142,600 |
| Pie Insurance | Small trade subs (< 10 employees) | $320K payroll painting biz, class 5474, MOD 1.02 | $24,900 (≈ $7.78 per $100) (pieinsurance.com) |
| Builders Mutual | Residential framers & roofers | $750K payroll roofing crew, class 5551, MOD 1.10 | $112,800 |
*Quotes gathered January 2026 for accounts in Orlando; include expense constant ($200) and FL assessments (1.06 %). Actual premiums vary by MOD, safety credits, deductible plans, and territory.
How to Lower Your Premium
1. Enroll in a Drug-Free Workplace program (–5 % statewide credit).
2. Request a higher deductible (up to $2,500 per claim).
3. Submit a formal safety plan to qualify for schedule credits (–2 % to –25 %).
4. Keep MOD ≤ 1.00 with aggressive return-to-work protocols.
Penalties, Stop-Work Orders & Enforcement Trends
| Violation | Penalty | Enforcement Tool |
|---|---|---|
| No WC policy when required | 2× the manual premium that should have been paid for the prior 2 years | Stop-Work Order (SWO) |
| Working while SWO remains in effect | $1,000 per day until compliance | SWO extension + criminal referral |
| Misclassifying employees or concealing payroll | 2× underreported premium & potential felony charges | Payroll audit + SWO |
In FY 2025 the Division of Workers’ Compensation issued 1,763 SWOs, collecting $61.9 million in penalties—40 % involved construction framing, drywall, and roofing trades. (myfloridacfo.com)
Benefit Levels—What Injured Employees Receive
| Benefit Type | % of Average Weekly Wage (AWW) | 2026 Max Weekly Benefit |
|---|---|---|
| Temporary Total Disability | 66 ⅔ % | $1,358 |
| Temporary Partial Disability | Up to 80 % of 80 % AWW minus light-duty wages | $1,358 |
| Permanent Impairment | Based on impairment rating (IR) × 75 % AWW | $1,358 |
| Death Benefit | Up to $150,000 lump sum + $7,500 funeral | — |
Statewide average weekly wage used for 2026: $1,357.95. (myfloridacfo.com)
Owner & Officer Exemptions
- File the “Notice of Election to be Exempt” (DFS-2190) online with a $50 fee.
- Must own ≥10 % of the corporation or LLC and be listed as an officer.
- Renew exemption every 2 years; lapses trigger automatic “employee” status and premium charges.
- Exemption does not protect you from liability lawsuits—carry a ghost policy if the GC demands a certificate.
Subcontractors, Certificates & General Contractor Liability
• General contractors are liable for unpaid premiums of uninsured subs under Fla. Stat. §440.10.
• Always collect ACORD 25 certificates showing:
– Same trade class codes you’re hiring
– Policy effective dates covering project duration
– Minimum $100K/$500K/$100K limits (standard FL WC policy)
Pro tip: Require subs to list your company as “certificate holder”; use MyFloridaCFO’s Proof-of-Coverage tool for real-time verification.
Buying Coverage in Florida: Voluntary Market vs. FWCJUA
| Option | Who Qualifies | Key Features | Drawbacks |
|---|---|---|---|
| Voluntary Private Market | 90 %+ of contractors | Competitive pricing, loss-control services, pay-as-you-go payroll platforms | Carriers often decline roofing, scaffolding & demolition |
| Florida Workers’ Compensation Joint Underwriting Association (FWCJUA) | Declined by ≥2 carriers | Assigned-risk; rates up to 25 % higher | Limited deductible & credit options |
| PEO (Employee Leasing) | Small trades w/ fluctuating payroll | Bundled payroll, HR, WC under master policy | Lose direct control of MOD; admin fees 2–5 % payroll |
Multi-State & Border-State Considerations
• Florida policy covers in FL only. Add Other States Endorsement for Georgia or Alabama crews.
• For projects in a monopolistic state (e.g., North Dakota), you must buy that state’s coverage separately—see How to Obtain Workers' Compensation Insurance in Monopolistic States.
• If you run operations in TX or CA, compare exemptions and penalty structures:
– California Workers' Compensation Insurance Requirements: 2024 Employer Guide
– Texas Nonsubscription Explained: Do You Really Need Workers' Compensation Insurance?
Frequently Asked Questions
Q1. Is a 1099 day-laborer considered an “employee” for WC?
Yes—if they perform construction labor under your direction, they must be covered or show a valid exemption.
Q2. How fast can I get coverage if I receive a Stop-Work Order?
Many agents can place same-day policies, but you must pay penalties first and present a binding confirmation to the Bureau of Compliance to lift the SWO.
Q3. Does Florida allow deductible WC policies?
Yes—standard options are $500, $1,000, and $2,500 per claim. Deductibles can reduce premium 2 %–12 %.
Key Takeaways for Florida Construction Employers
• Coverage is compulsory with just one employee.
• 2026 brings a 6.9 % statewide rate drop, yet high-risk trades (roofing, framing) still exceed $13 per $100 payroll.
• Non-compliance risks double premium penalties and $1,000-per-day SWO fines.
• Competitive carriers like The Hartford, Travelers, Pie, and Builders Mutual can slash costs if you keep MOD < 1.00 and leverage safety credits.
• Multistate contractors must coordinate policies to avoid coverage gaps.
Stay compliant, budget accurately, and keep every worker protected—the foundation for profitable Florida construction projects in 2026 and beyond.
Sources: Florida Division of Workers’ Compensation, Florida Office of Insurance Regulation, NCCI, The Hartford, Pie Insurance, Florida Trend.
Need more guidance? Compare how other states handle WC minimums and deadlines in Alaska to Wyoming: State-by-State Workers' Compensation Insurance Coverage Charts.