From the I-75 corridor in Marion County to the job sites around Jacksonville and St. Johns County, North Central and Northeast Florida contractors have had a busy year. Busy years are also when insurance paperwork slips: a sub’s certificate expires, an exemption runs out, or payroll outgrows the policy estimate.
Before you start bidding 2027 work, here’s a practical checklist for general contractors, site work and underground utility contractors, electricians, HVAC and plumbing contractors, and concrete, fencing and pool companies.
1. Know Florida’s Construction Rule for Workers’ Comp
Florida treats construction differently. Outside construction, workers’ compensation generally applies once a business has four or more employees. In the construction industry, it applies once you have one employee (section 440.02, Florida Statutes). Every contractor and subcontractor doing construction work in Florida has to secure and maintain coverage for its employees (section 440.10).
If your crew or your services grew this year, make sure your policy reflects it.
2. Check Officer Exemption Expiration Dates
Many contractors run as corporations or LLCs with officers who have elected to be exempt from workers’ comp. A few Florida rules to keep in mind:
- In construction, no more than three officers of a corporation (or group of affiliated corporations) can be exempt. Each must own at least 10% of the company and be listed as an officer with the Florida Division of Corporations. For LLCs, the member must own at least 10%.
- A construction exemption certificate is valid for two years and expires at midnight on the date shown. The Florida Department of Financial Services (DFS) sends a notice at least 60 days before it expires.
- Applications and renewals are filed online with the DFS Division of Workers’ Compensation, carry a $50 fee, and require a short online coverage-and-compliance tutorial.
- An exemption applies only to the officer named on it, for the companies listed on it. It is not a contractor’s license.
To do: pull up each officer’s certificate, note the expiration date and put a renewal reminder on the calendar.
3. Get Your Subcontractor Certificates in Order
This is where we see the most surprises at audit time.
Under Florida law, when a contractor sublets work, the contractor is responsible for workers’ comp for the subcontractor’s employees on that job, unless the subcontractor has its own coverage (section 440.10). The law also says the contractor must require subs to show proof of workers’ comp, and an exempt officer must give the contractor a copy of the exemption certificate.
A simple routine helps:
- Collect a certificate of insurance (COI) for workers’ comp and general liability from every sub before they start work, and track the expiration dates.
- Verify workers’ comp coverage and exemptions on the DFS Proof of Coverage database. It takes about a minute.
- Keep copies organized by sub and by job. Your auditor will ask for them.
- Check your contracts. If you require subs to name you as an additional insured or carry certain limits, confirm their certificates show it.
Uninsured subs can show up as added premium at audit, and worse, as a claim on your own policy.
4. Prepare for Your Premium Audit
Workers’ comp and many general liability policies start with an estimate of your payroll, sales or subcontracted costs. After the policy year ends, the carrier audits your actual numbers, usually every year for contractors (and on-site for larger policies), and adjusts the premium up or down.
You can make audits smoother, and avoid surprises, by having these ready:
- Payroll records by employee and by job duty (class code). If someone works in more than one trade, keep time records that show hours in each. Without them, the auditor can put all of that person’s pay in the highest-rated class.
- Overtime records that show the overtime premium separately (the extra “half” is left out of workers’ comp payroll only if your records break it out), plus officer payroll and copies of any officer exemptions.
- A list of every subcontractor you paid, with amounts and their certificates. Make sure each certificate or exemption was in force on the dates the sub worked for you. If the auditor can’t get access to your records, Florida lets the carrier charge up to three times your estimated annual premium.
- Notes on any change in operations: new services, new counties, larger projects.
If payroll has grown a lot since your policy started, call us before the audit. Updating your estimate mid-term spreads the extra premium across your remaining payments, so you won’t face one large bill at audit. It also keeps your certificates and limits in line with your real size.
5. Look Ahead to 2027 Bids
Before the new year’s contracts land on your desk, review:
- General liability limits and contract requirements. Many owners and GCs require additional insured status, waivers of subrogation or specific limits. Make sure your policy can provide them before you sign.
- Umbrella or excess liability. Larger projects often call for higher limits. See our umbrella coverage page.
- Builders risk. If you’re managing new construction or renovation projects, read Builders Risk Insurance: What It Covers and What It Doesn’t.
- Equipment and tools. Keep your equipment schedule current.
- Commercial auto. If employees drive personal vehicles to job sites, read Should Employees Be Driving Their Personal Vehicles to the Job Site?
6. Don’t Forget the Weather
Hurricane season runs through November 30, and Hurricane Isaias was a reminder that storms can arrive late. Review your jobsite storm plan: securing materials and equipment, protecting partially completed work, and knowing how your builders risk and equipment policies handle named-storm deductibles.
Why It Matters
DFS enforces workers’ comp coverage in construction, and a business found without the required coverage can face a stop-work order and penalties (section 440.107). A well-organized file also keeps your premium accurate and your projects moving.
Let’s Review Your Program Before Year-End
McGriff-Williams has worked with Florida contractors since 1983. We’re an independent agency, so we compare options from multiple insurance companies for workers’ comp, general liability, auto, equipment, builders risk and umbrella coverage. Then we help you stay organized all year: certificates, audits, exemptions and renewals. Call us at (352) 371-7977 or request a business insurance review. You can also learn more about our workers’ compensation and business insurance services.
General information, not legal advice. Coverage depends on the policy issued, its terms and underwriting. Florida workers’ compensation rules are set by Chapter 440, Florida Statutes, and DFS rules; confirm your situation with your agent, carrier or the DFS Division of Workers’ Compensation. McGriff-Williams Insurance is an independent insurance agency licensed in Florida. Information current as of October 2026.
