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Florida Workers' Comp With No Employees: Do You Need It?

The answer depends on how your business is set up and whether you work in construction. Here is how Florida law treats owners who work alone.

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Last reviewed: November 2026, by Cheap Workers Comp Florida, licensed Florida agency DFS #L077476

The Short Answer

Your setupNon-constructionConstruction
Sole proprietor, no employeesNot required. You may elect to cover yourself.The statute counts you as an employee, so coverage applies; exemptions are written for corporate officers.
Single-member LLC or one-owner corporationNot required below 4 employees (owners count).Required unless you hold a valid construction exemption.
Owner plus paid family membersFamily members who are paid count toward 4.One paid family member triggers coverage.

Florida's coverage thresholds live in section 440.02(20)(b)2., Florida Statutes: four or more employees for most businesses, and one or more for the construction industry. Whether you, the owner, are one of those "employees" depends on the type of business entity you use and the industry you are in. That is where most of the confusion comes from.

Sole Proprietors and Partners

Outside construction, a sole proprietor or partner is not an employee under section 440.02(18)(c)1. unless he or she elects to be included. A one-person bookkeeping service, a mobile detailer, or a solo consultant running as a sole proprietorship does not need workers' comp for the owner. If you want coverage for yourself, the Division of Workers' Compensation handles the election to be included with Form DWC-251, and you then buy a policy that covers you.

In construction, the rule flips. Section 440.02(18)(c)4. includes a sole proprietor or partner engaged in the construction industry in the definition of employee. The exemption election in section 440.02(18)(b) is written for officers of a corporation, which is why construction owners who want to be exempt generally operate through a corporation or LLC rather than as a sole proprietor. In practical terms, a solo roofer, painter, or framer working under his or her own name should expect to need either coverage or a business entity with an exemption.

Single-Member LLCs and Corporate Officers

Section 440.02(18)(b) treats corporate officers who perform services for pay as employees, and section 440.02(11) includes an LLC member owning at least 10% of the company in the definition of a corporate officer. So the owner of a single-member LLC is counted as an employee unless he or she files a notice of election to be exempt with the Division under section 440.05. The Division's coverage page says the same thing in plain language: business owners who are corporate officers or LLC members count toward the threshold.

For a non-construction single-member LLC with no other workers, that adds up to one employee, well under four, so coverage is not required. Exemptions still matter once you start hiring: a two-owner LLC with two part-time employees has four employees unless the owners are exempt.

For a construction LLC or corporation, the owner alone is enough to trigger the one-employee threshold. You either carry coverage or file a construction exemption. Under section 440.02(18)(b)2., no more than three officers of a corporation or affiliated group may be exempt in construction, and each must own at least 10% of the stock.

Family Members

Chapter 440 has no general family-member exception. The definition of employee in section 440.02(18)(a) turns on whether a person receives remuneration for work or services, so a spouse, son, or cousin on your payroll is an employee like anyone else. In construction, one paid family member means you need coverage. Outside construction, paid family members count toward the four-employee threshold. If a relative is an owner and officer of the company, the officer rules above apply instead, including the option to file an exemption.

Why a General Contractor Still Asks for a Certificate

Even when the law does not require you to carry coverage for yourself, the contractor hiring you may insist. That is not arbitrary. Under section 440.10(1)(b), when a contractor sublets work, the employees of any subcontractor that has not secured coverage are treated as the contractor's employees, and the contractor must cover them. Section 440.10(1)(c) requires the contractor to collect evidence of workers' comp coverage from each subcontractor, and a copy of the exemption certificate when a corporate sub's officer is exempt. Section 440.02(18)(c)2. adds that a person paid as a subcontractor by a construction contractor is an employee unless the sub has a valid exemption or its own coverage.

The result: if you cannot hand the GC either a certificate of insurance or a valid exemption, the GC's own carrier will usually pick up what it paid you as payroll at audit and charge premium on it. Many GCs simply will not hire a sub without one of the two documents. Our guide to subcontractor certificates covers what GCs look for.

Your Three Options

1. File a construction exemption

If you operate through a corporation or LLC and own at least 10%, you can file a notice of election to be exempt with the Division. Key points from section 440.05: the construction exemption carries a $50 fee, a certificate issued on or after January 1, 2013 is valid for 2 years from its effective date, the officer must be listed as an officer of the business in the Division of Corporations records, and the certificate itself states that it is not a license issued by the Department of Business and Professional Regulation. An exempt officer cannot recover workers' comp benefits for his or her own injuries. The exemption covers only the officers who file it; the moment you hire anyone, you need coverage for them. See our exemption guide for the details.

2. Cover yourself through a PEO

A professional employer organization (in Florida law, a licensed employee leasing company) is responsible for workers' comp coverage of its leased employees under section 468.529. When an owner is enrolled and paid through the PEO's payroll, the owner can be covered by the PEO's policy and receive a certificate the GC can verify. Premium is usually collected with each payroll, so cost tracks what you actually pay yourself. This is often the most practical route for a one-person construction business that wants real coverage rather than an exemption. PEOs also charge administrative or enrollment fees, so compare the total cost, not just the rate.

3. Buy a standard policy (often at minimum premium)

A traditional policy that covers you is another route. With little or no payroll, it often bills at the carrier's minimum premium, a floor charge that applies no matter how small the payroll. Be careful with so-called "ghost policies" that list no covered employees: they produce a certificate but may not cover the person holding it. Read our ghost policy guide before buying one.

What Covering Yourself Costs

Workers' comp is priced per $100 of payroll by class code. Using our live 2026 Florida filed rates, $50,000 of owner payroll would carry a base rate cost of roughly $3,845 in residential framing (code 5645, $7.69/100), $2,240 in painting (code 5474, $4.48/100), or $55 in clerical work (code 8810, $0.11/100). Real quotes add the carrier's or PEO's pricing and fees, and small policies may hit a minimum premium. The payroll estimator lets you try your own numbers, and the instant quote tool gives you a real price.

When You Hire Your First Worker

Thresholds are checked continuously, not once a year. In construction, the first person you pay, including a part-time helper or a "1099" worker who does not meet the independent contractor test, can make you a covered employer that day. Outside construction, the fourth employee, counting non-exempt owners and part-timers, does the same. If you cross a threshold without coverage, the Division can issue a stop-work order and assess a penalty of 2 times the premium you should have paid, with a $1,000 minimum, under section 440.107(7). Our 1099 contractor guide explains the independent contractor test.

Frequently Asked Questions

Outside construction, a sole proprietor or a single-member LLC with no other workers is below the four-employee threshold and is not required to carry coverage. In construction, the owner counts: a construction LLC member or corporate officer needs coverage or a valid exemption, and the statute counts a construction sole proprietor as an employee.

The statute's exemption election is written for corporate officers, and section 440.02(18)(c)4. counts a construction sole proprietor as an employee. Construction owners who want an exemption generally form a corporation or LLC, own at least 10%, and file a notice of election to be exempt with the Division.

An LLC member owning 10% or more is treated as a corporate officer and counts as an employee unless exempt. Outside construction that is one employee, below the threshold of four. In construction, it triggers the one-employee threshold unless the member files an exemption.

Yes, if they are paid. Chapter 440 has no general family-member exception; the employee definition turns on receiving remuneration for work. Paid relatives count toward the threshold like anyone else.

Section 440.10 makes the contractor responsible for an uninsured subcontractor's workers and requires the contractor to collect proof of coverage or a copy of the exemption certificate. Without one, the GC's carrier usually charges the GC premium on what it paid you.

A certificate issued on or after January 1, 2013 is valid for 2 years from its effective date, and the construction exemption carries a $50 fee under section 440.05.

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