Reminder to Insurance Agents: Florida Workers’ Compensation

North Carolina insurance agents may have contracting clients who are planning to go to Florida for cleanup and restoration work.  There are several requirements for out-of-state contractors working in Florida of which you should be aware.

  • Constructing industry employers with one or more full-time or part-time employees must provide coverage for all employees.
  • Construction industry employers must ensure any subcontractor has workers’ compensation coverage or a valid exemption for the corporate officers or members of the Limited Liability Company, however there must be workers’ compensation coverage for all employees of the subcontractor.
  • All out-of-state employers engaged in work in Florida must immediately notify his or her insurance carrier that it has employees working in Florida.
  • An out-of-state employer who has employees working in Florida must have a Florida workers’ compensation insurance policy or an endorsement must be added to the put-of-state policy that lists Florida in paragraph 3. A. of the workers’ compensation policy information page.
  • Florida contractors working in Florida using out-of-state subcontractors must require proof of a workers’ compensation policy or an endorsement to the out-of-state employer’s policy that lists Florida in paragraph 3. A. of the subcontractor’s workers’ compensation policy information page.

The Florida Division of Workers’ Compensation has compliance investigators who conduct on-site inspections.  These inspectors have the authority to issue “Stop-Work Orders” requiring an employer to cease all business operations if the employer is not in compliance with Florida requirements.  Such Orders may also be issued if an employer understates or conceals payroll, misrepresents or conceals employee duties, or otherwise attempts to avoid paying workers’ compensation insurance premiums.  To get a release from a “Stop-Work Order,” an employer is required to provide evidence of compliance and make a minimum down payment of $1,000 on the penalty and agree to enter a Periodic Payment Plan. Rewards of up to $25,000 are available to persons providing information to Florida authorities leading to the arrest and conviction of persons committing insurance fraud including the failure to provide workers’ compensation coverage.

For further information on this and other matters concerning workers’ compensation in Florida, consult

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