Short answer
A Florida workers comp exemption lets some corporate officers opt out of workers’ compensation. That can work for a two person firm. Large owners, airports and general contractors often require a workers’ comp certificate before you start, though. When you buy a policy, the class code matters most. Inspectors and consultants can end up rated like the trades they inspect if their duties aren’t described clearly. Whether a policy responds depends on its wording and the facts.
How a Florida workers comp exemption works
Florida allows certain corporate officers to exempt themselves from workers’ compensation. The rules differ for construction and non-construction businesses, so the category your firm falls into matters. Check the current requirements with the Florida Department of Financial Services and the text of Chapter 440 before relying on an exemption. An attorney or your agent can help confirm which category applies to your firm.
An exemption covers the officer who holds it. It doesn’t extend to employees. If your firm hires staff, those employees are generally treated differently from exempt officers. Our Florida design firm insurance page explains how we work with firms in this position.
Why clients require a policy anyway
An exemption is a state level choice, but a contract can ask for more. Owners, airports and government agencies often require proof of workers’ compensation before they allow site access. The contract may require a certificate even when state law doesn’t require coverage for your officers.
A long airport or high rise project can bring these requirements into focus. Many firms find out when the contract arrives, after years of working without a policy. Our article on whether you need workers’ comp with no employees explains how this question often arises. Our workers’ compensation page covers the basics.
Class codes and why the description matters
Workers’ comp rates are set per $100 of payroll, and the rate depends on the class code. A class code is a category that describes the type of work your employees do. Each category carries its own rate.
Inspection work and trade work can fall into very different classes. If your duties are described like a trade, you may be rated like one. A consultant who inspects ironwork doesn’t necessarily perform ironwork, so the application should say what your staff do.
Work at heights adds another question. Underwriters often ask about swing stages and similar access methods, because height changes how they view the exposure. Describe what your staff actually do at height, such as observing, measuring and photographing. Keep that description accurate and consistent across your application and contracts.
Payroll records matter here as well. Our article on workers’ comp audits and 1099 contractors explains how audits review payroll and classification.
If no one will write it
Some small firms with unusual work struggle to find a standard quote. Carriers may not have a class code that fits, and a niche service can end up placed in the closest available category. That outcome doesn’t always reflect the actual work.
If quotes keep coming back built for the wrong trade, start by reviewing how your duties were described. A short, precise description of your work, along with payroll details, gives an underwriter a clearer picture. Availability and pricing vary by carrier, and nothing here guarantees a particular result.
What we see at Hardcover
A two person Florida consulting firm has used an officer exemption for several years. A large airport project and exterior high rise work are coming, and the firm expects to need a policy. As one Florida consultant told us, an earlier quote used rates built for ironworkers, and the firm’s service was so niche that rarely anything matched it.
That experience is common for inspectors and consultants. The class code often comes from the trade being inspected rather than the inspection itself. A review of the duties, payroll and contract requirements usually shows where the mismatch started.
Questions to ask your agent
- Which class code fits my actual duties?
- Do I keep my exemption if I buy a policy?
- What payroll do I report for owners?
Related questions
Can I keep my Florida exemption and still buy workers’ comp?
Often you can keep officers excluded and cover employees. Your agent can explain the options for your situation.
Why is my workers’ comp quote so high?
Usually the class code. If your work is described like a trade, you may be rated like one.
Does working on swing stages change my rate?
It can. Underwriters ask about heights. Describe what your staff actually do.
General education, not legal advice. Hardcover is an insurance agency, not a law firm.