Worker's Compensation FAQs

"Who needs to obtain workers’ compensation coverage?”

All businesses (except construction) with 4 or more employees, full-time or part-time. [Corporate officers do count as employees unless the officer has applied for and been issued an exemption.]

All construction industry businesses. The owner is included unless he/she specifically files for an exemption. (Please see below for more details on exemptions.)

"Who can get an exemption?"

Only the owners of businesses are allowed to be exempt.  Employees are never allowed to exempt out of workers' compensation coverage.

Non-construction Businesses:  Exemptions for non-construction businesses are free and last a lifetime or until they are revoked by the exemption holder.  Business owners can get an exemption by filing form DWC 250 - Notice of Election to be Exempt.

Sole Proprietors and Partners - Sole proprietors and partners are automatically excluded from workers' comp; they do not have to get an exemption.  If they wish to be covered by workers' compensation, they must file form DWC 251 - Election of Coverage with the Division of Workers' Compensation.  If they want to go back to being excluded from workers' comp, they can file form DWC 251R - Revocation of Election of Coverage.

Corporations - Officers of a corporation are those people who own the corporation and hold an office on its Board of Directors.  Non-construction businesses can exempt all of their officers - there is no limit to the number of exemptions.

LLCs - There is no mechanism in the law for LLC owners of non-construction businesses to receive exemptions.  Instead, the state of Florida considers them to be employees if they receive remuneration from the business.  It is up to individual insurance companies whether to include or exclude LLC owners from workers’ compensation coverage.

Construction Businesses:  Exemptions in the construction industry cost $50 each and must be renewed every 2 years.  Business owners can get an exemption by filing form DWC 250 - Notice of Election to be Exempt, the same form for non-construction businesses, but there are stricter requirements as to who can get an exemption in the construction industry.

Sole Proprietors and Partners - Since January 2004, sole proprietors and partners in the construction industry cannot exempt out of workers' comp.  Sole proprietors and partners must now purchase workers' comp coverage if they wish to remain working legally.

Corporations - A corporation can exempt up to 3 of its officers.  Each officer must own at least 10% of the corporation's stock.