Short answer: Workers’ compensation pays for medical care, rehabilitation and part of lost wages when an employee is hurt or becomes ill because of work. In Florida, whether you’re required to carry it depends on your industry and how many employees you have: construction businesses need it with one employee, most other businesses with four, and agricultural employers at higher thresholds. McGriff-Williams Insurance, an independent agency in Gainesville since 1983, helps Florida employers set up coverage, understand their experience mod and prepare for premium audits.

Who has to carry workers’ comp in Florida?

Florida’s rules depend on your industry (section 440.02, Florida Statutes, 2026):

  • Construction: coverage is required once you have one or more employees. In construction, owners count. Corporate officers and LLC members are treated as employees unless they hold a valid exemption, and sole proprietors and partners in construction are treated as employees too. Only qualifying corporate officers and LLC members (each owning at least 10%) can elect to be exempt, and no more than three officers per corporation or group of affiliated companies.
  • Non-construction: coverage is required once you have four or more employees, full- or part-time. Corporate officers, and LLC members who own at least 10%, count toward the four unless they’ve filed an exemption. Outside construction, sole proprietors and partners aren’t counted as employees unless they choose to be included on the policy.
  • Agriculture: coverage is required for farm employers with six or more regular employees, or 12 or more seasonal workers who work more than 30 days in a season or more than 45 days in the same calendar year.

Not every trade counts as construction. Pest control and routine pool cleaning, for example, follow the general four-employee rule, while pool construction and repair, fencing and paving are construction. If you’re not sure where your work falls, we’ll help you check.

Hiring subcontractors? Under section 440.10, if a subcontractor doesn’t carry its own workers’ comp, the contractor above it is liable for workers’ comp for that sub’s employees on the job. That’s why Florida contractors are required to collect proof of coverage or an exemption from every sub.

What workers’ comp covers

  • Medical care for a work-related injury or illness, including rehabilitation.
  • Lost wages: a portion of an injured employee’s income while they recover.
  • Employer’s liability: most workers’ comp policies also include employer’s liability coverage (Part Two of the policy). In Florida, workers’ comp is generally an employee’s exclusive remedy against the employer (section 440.11, Florida Statutes). The law has narrow exceptions, such as an intentional tort as the statute defines it, and some lawsuits over workplace injuries are filed anyway. Employer’s liability coverage can help with some of these suits, depending on the policy’s terms and exclusions. Limits vary by policy, and we’ll help you choose limits that fit your contracts and your umbrella.

Employers must report a workplace injury to their insurance company within 7 days of learning about it (section 440.185(2), Florida Statutes). Reporting early also helps keep a claim on track.

How your experience mod works

You may have heard the term “work comp mod.” Your experience modification factor, or mod, compares your actual claims, typically over a three-year experience period, with the claims expected for a business of your size and type. A 1.00 is average. A mod below 1.00 lowers your premium, and a mod above 1.00 raises it.

  • Frequency matters more than severity. The formula gives full weight to the first part of each claim and only partial weight to the amount above it, so several small claims usually move a mod more than one large claim.
  • Medical-only claims get a break. Florida uses the National Council on Compensation Insurance (NCCI) Experience Rating Adjustment, so only 30% of a medical-only claim counts in the mod. Your experience rating worksheet shows how your claims are weighted.
  • Small or new businesses that aren’t experience rated have no mod yet and pay the standard rates for their class codes.

Because your claims history feeds into your mod, preventing injuries and keeping claims small is one of the few cost factors your business can directly influence.

What drives workers’ comp cost

Your premium depends on your class codes (the type of work your employees do), your payroll in each class, your experience mod and the insurance company’s rates. At the end of the policy term, the insurance company audits your actual payroll and classifications, and the premium is adjusted up or down.

In August 2026, the National Council on Compensation Insurance (NCCI) filed for a proposed 7.4% overall average decrease in Florida workers’ compensation rates in the voluntary market, for new and renewal policies effective January 1, 2027. The Florida Office of Insurance Regulation scheduled a public hearing for October 27, 2026. As of October 19, 2026, OIR’s final decision is pending; check OIR’s hearing page for the outcome. OIR is accepting public comments until November 10, 2026. It’s a statewide average, so your premium still depends on your class codes, payroll, claims experience and insurance company. (Sources: Florida OIR; NCCI. Checked October 19, 2026.)

Build a safety culture

An injury costs more than the claim. Lost productivity, hiring and training a replacement, and time spent on the investigation all add up. We want to help you get ahead of that with steps you can put in place now:

  • A written safety program and regular training
  • A careful hiring process
  • An emergency preparedness plan
  • Distracted and defensive driving policies for anyone who drives for work
  • A return-to-work program with real modified-duty tasks, so injured employees can keep working while they recover

How McGriff-Williams helps

As an independent agency, we compare options from multiple insurance companies for you. Beyond the policy, we can help with:

  • Workers’ comp audit support: preparing for your premium audit and reviewing the results with you.
  • Class codes and exemptions: reviewing your job classifications and officer exemptions with you at renewal. Each officer files and signs their own exemption application with the Florida Division of Workers’ Compensation.
  • Subcontractor certificates: tracking the certificates of insurance your subs give you.
  • Certificates of insurance: for clients, we issue the certificates you’re asked to provide, including standing requests for certificate holders you work with often.
  • Safety and HR resources: an employee safety training platform, OSHA support and access to live HR professionals.

We work with growing and established Florida businesses, including contractors and trade subcontractors, apartment and commercial property owners, multi-unit restaurants and retailers, and wholesalers and manufacturers.

How to get a quote

What we’ll need:

  • What your business does, and where in Florida you work
  • Number of employees and estimated annual payroll by type of job
  • Whether you use subcontractors, and whether they carry their own coverage
  • Your current policy’s expiration date
  • Recent loss runs, if you have them (Florida requires insurance companies to provide loss runs within 15 days of your written request, and we can help you ask)
  • Your current experience mod worksheet, if you’re experience rated

What happens next: A licensed member of our team will review your request and contact you by phone or email.

Why it isn’t instant: We compare options from multiple insurance companies, and coverage isn’t in place until it’s bound.

Request a quote: Request a quote · Call (352) 371-7977 · Monday–Friday, 9 a.m.–5 p.m.

McGriff-Williams Insurance · 3501 W University Ave, Gainesville, FL 32607

Frequently asked questions

Does every Florida business need workers’ comp?

No. It depends on your industry and number of employees. Construction businesses need coverage with one employee, most other businesses with four or more, and agricultural employers with six or more regular employees or 12 or more seasonal workers who work beyond the time limits in the law. Even when it isn’t required, some contracts and customers ask for it.

Do part-time employees count toward the four?

Yes. Outside construction, the four-employee threshold counts full- and part-time employees. Corporate officers, and LLC members who own at least 10%, count unless they’ve filed an exemption.

Can I exempt myself as an owner?

Often, yes, by filing with the Florida Division of Workers’ Compensation. Each person applies for their own exemption. In construction, up to three corporate officers or LLC members per company or group of affiliated companies can elect an exemption. Each must own at least 10% and be listed as an officer with the state, and the exemption lasts two years. Sole proprietors and partners in construction can’t be exempt. Outside construction, any corporate officer listed with the state can elect an exemption, with no ownership minimum, and up to 10 LLC members who each own at least 10% can elect one. An exemption applies only to the named person and the companies listed on it. It doesn’t cover anyone else, including your employees, and it isn’t a license.

Why did my premium change after the audit?

Usually because payroll was higher or lower than the estimate on the policy, payroll was moved into a different class code, or a subcontractor didn’t have valid coverage while working for you. We’ll review the audit with you.

This page is general information, not legal advice. Coverage depends on your policy’s terms. Rules and rates change, so review your situation with us or a licensed professional.

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