Just Licensed? Workers' Comp for New Florida Contractors

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

The 30-Day Decision You Already Made

When you applied for your certificate or registration with the Department of Business and Professional Regulation (DBPR), you signed a workers' comp affidavit. Under section 489.115(5), Florida Statutes, a construction contractor applicant must file an affidavit stating that the applicant has workers' compensation coverage under chapter 440, or, under paragraph (5)(d), an affidavit stating that the applicant will obtain an exemption within 30 days after the license is issued.

So the clock started the day DBPR issued your license. Either you already have coverage, or you promised to have an exemption on file within 30 days. Many new licensees check the exemption box, plan to "deal with it later," and then win their first job before doing anything. That is the gap this guide is meant to close.

There are really only two paths, and most growing contractors end up using both: an exemption for the owner, and coverage for everyone else.

Exemption vs. Coverage: What Each One Does

Under section 440.02 and section 440.05, up to three officers of a construction corporation (or a group of affiliated corporations) can elect to be exempt, as long as each owns at least 10% of the business and is listed as an officer with the Division of Corporations. An LLC member who owns at least 10% is treated as an officer for this purpose.

The short version: your exemption covers you; employees need coverage. Because the Division can take up to 30 days to process an exemption, file it as soon as you can after licensing rather than near the end of the window. If you hold your license as a sole proprietor rather than through a corporation or LLC, the officer exemption generally is not available to you; our guide on workers' comp with no employees explains why, and the Florida exemption guide covers filing and renewal.

The Moment You Hire Your First Employee

Florida's coverage threshold for the construction industry is one employee. Outside construction it is four, which is why advice from a friend who runs a cleaning business or a shop does not apply to you. In construction, the first person you pay to work for you, whether full-time or part-time, makes you an employer who must carry workers' comp.

This catches new contractors in a few predictable ways:

• The part-time helper. A helper who works two days a week is still an employee. There is no hours minimum.
• The "1099" worker. Paying someone on a 1099 does not make them an independent contractor. In construction, a worker paid as a subcontractor without his or her own coverage or exemption is generally treated as your employee. See our 1099 contractor guide.
• The fourth working owner. Only three officers can be exempt. A fourth working owner needs coverage.

Coverage has to be in force before that person starts work. A quote or an application is not coverage, and coverage does not reach back to cover days that already passed.

Permits and General Contractors Will Ask

Even before an inspector or an investigator shows up, two people will ask for proof:

• The building department. Under section 440.103, every employer must show proof of workers' comp coverage (a certificate of coverage) or an exemption as a condition of applying for and receiving each building permit.
• The general contractor. Under section 440.10, a contractor is responsible for the employees of an uninsured subcontractor. That is why GCs ask every sub for a certificate of insurance or an exemption before work starts or before they release payment. If you cannot produce one, many GCs will not hire you, and others will have their own carrier charge them premium on what they paid you, which comes out of your next bid.

An exemption satisfies these checks for the owner's own work. Once you have a crew, the GC and the permit office need to see coverage for them. Our subcontractor certificates guide shows what GCs look for.

What Happens If You Skip It

The Division of Workers' Compensation enforces coverage with stop-work orders. Under section 440.107(7)(d), the penalty is 2 times the premium you should have paid for the period you were uninsured, looking back up to 12 months (24 months for repeat violations or when payroll was concealed), with a $1,000 minimum. Separately, working while a stop-work order is in effect adds $1,000 per day. For a new business, the cheapest moment to get covered is before the first employee starts. Try our stop-work order penalty calculator to see how fast the numbers grow.

Traditional Policy vs. Pay-As-You-Go PEO for a New Business

A brand-new contracting business is often an awkward fit for a traditional policy: no prior coverage, no loss history, no payroll system, and cash that is better spent on tools and materials. A pay-as-you-go program through a professional employer organization (PEO) is built differently.

That combination is why a PEO is usually the easiest way for a new contractor to get covered: you get coverage, payroll, and certificates in one setup, and your cost rises and falls with the work you actually have. For more detail, see pay-as-you-go workers' comp and the PEO vs. standard policy comparison.

To be straight about cost: our program has a one-time enrollment fee of $695, waived for payrolls of $300,000 or more, and very small payrolls hit program minimums (see minimum premium). The instant quote includes both, so the price you see is not missing anything. Not every trade is accepted; the quote tool will tell you if your code is one the program usually cannot write. Roofing (code 5551) is accepted.

What Workers' Comp Costs for Common New-Contractor Trades

Workers' comp is priced per $100 of payroll, by class code. These are the 2026 Florida filed manual rates from our live database, with an example annual cost at $60,000 of payroll. They are filed manual rates before PEO pricing, fees, and minimums, so treat them as a sense of scale, not a quote.

Two things move your real number the most: using the right class code for the work your employees actually do, and an honest payroll estimate. If you are not sure of your code, search the class code list, or check requirements by industry. Then run the instant quote to see the program price for your business.

Getting Covered, Step by Step

1. File your exemption if you want one. Each owner who wants to be exempt files with the Division of Workers' Compensation online. Do it early; processing can take up to 30 days.
2. Pick your class code and estimate payroll. Estimate 12 months of wages for the employees you plan to have, by type of work. Owners who are exempt are left out.
3. Run the instant quote. Enter your codes and payroll and see a price that includes the enrollment fee and any program minimums.
4. Apply online. The application takes about 10 minutes. Have your legal business name as it appears on Sunbiz and your license, your FEIN, and your owners' details ready.
5. The provider reviews your application. They may ask a follow-up question about your operations.
6. Sign your rate sheet online. Once approved, you sign electronically and complete enrollment, and your coverage starts on the effective date you are given.
7. Request certificates. Once you are enrolled, ask for certificates naming each GC or permit office that needs one.

We will not promise a specific turnaround, because it depends on your trade, your answers, and the provider's review. Applying before you need the coverage is the best way to avoid a delay. Our guide on how to get workers' comp fast in Florida covers what slows applications down.

Frequently Asked Questions

Related Resources

• Florida workers' comp exemption guide
• Do I need workers' comp with no employees?
• How to get workers' comp fast in Florida
• Florida workers' comp requirements by industry
• Stop-work order penalty calculator
• Pay-as-you-go workers' comp

Sources

• Section 489.115, Florida Statutes (2026): Certification and registration
• Section 440.02, Florida Statutes (2026): Definitions
• Section 440.05, Florida Statutes (2026): Election of exemption
• Section 440.10, Florida Statutes (2026): Liability for compensation
• Section 440.103, Florida Statutes (2026): Building permits; proof of coverage
• Section 440.107, Florida Statutes (2026): Employer compliance and penalties
• Florida Division of Workers' Compensation: Exemptions