Is Workers’ Compensation Mandatory in Florida? What Jacksonville Business Owners Need to Know

Running a business in Florida—especially in Jacksonville—means you’ve got a lot on your plate. Between managing your team, serving your customers, and keeping up with the latest rules, it can feel like the laws are always changing. One of the most common questions we get from small business owners is:

“Do I really need to carry workers’ comp insurance in Florida?”

Let’s break it down in plain English.

Who Needs Workers' Comp in Florida?

In Florida, workers’ compensation isn’t just a “nice to have”—it’s often required by law. The rules depend on the type of business you run and how many employees you have.

Here’s the simple version:

• Non-construction businesses (like retail, restaurants, or office work): If you have 4 or more employees, whether they’re full-time or part-time, you must carry workers’ compensation insurance.
• Construction companies: If you're in construction, even one employee means you need coverage—no exceptions. The state is strict about this.
• Agricultural businesses: You’re required to carry workers’ comp if you have 6 or more regular employees, or 12 or more seasonal workers who work more than 30 days in a year.

Jacksonville Workers' Comp Insurance Made Simple

Navigating Florida’s workers' compensation laws can feel overwhelming, especially for busy Jacksonville business owners. That’s where we come in. Our team specializes in Jacksonville workers' comp insurance, helping local businesses meet state requirements without overpaying. Whether you're hiring your first employee or reviewing your current policy, we’ll walk you through class codes, exemptions, and rates—so you can protect your team and stay compliant with confidence.

What About Subcontractors and Out-of-State Businesses?

• If you're a primary contractor (especially in the construction world), you’re responsible for making sure your subcontractors have proper workers' comp coverage. If they don’t—and someone gets hurt—you could be on the hook.
• If you’re an out-of-state business with employees working in Florida, you’ll need to add Florida to your workers’ comp policy. Some carriers allow this through what's called an “All States Endorsement,” but Florida usually needs to be listed specifically.

Why Is Workers’ Comp So Important?

Florida doesn’t mess around with enforcement. If your business is required to carry workers' compensation and doesn’t, the penalties can include:

• Heavy fines
• Stop-work orders
• Personal liability if an employee is injured

And most importantly—it protects your team. If someone gets injured on the job, workers’ comp helps pay for their medical bills, lost wages, and more. That means less stress for them—and for you.

How Much Does Workers’ Comp Cost in Florida?

The cost depends on:

• Your industry and risk level
• Your payroll
• Your claims history
• Any safety programs you have in place

Good news? We shop around with top-rated insurance companies to find you a fair price and the right protection. You don’t need to be an expert—we’ve got your back.

Workers Comp Insurance for Small Businesses in Jacksonville

Whether you're a contractor, retailer, or run a small office, workers comp insurance for small businesses is essential for protecting your employees and your future. In Florida, coverage is legally required if you have four or more employees—even part-timers. But did you know your rate is based on something called a class code, which reflects the type of work your employees do? The wrong classification can lead to overpaying—or unexpected issues during a premium audit. Our Jacksonville-based team helps small businesses get the right policy, clearly explain class codes, and ensure you're compliant—without the confusion.

What Is a Workers’ Comp Class Code?

When you're setting up a workers’ compensation policy, your employees will be assigned something called a class code. Think of it as a label that describes the type of work they do.

Each class code is linked to a specific level of risk. For example:

• An office employee might be assigned a low-risk code (like 8810)
• A roofer or construction worker will have a high-risk code (like 5551)

These codes are set by the National Council on Compensation Insurance (NCCI) and are standardized across Florida. Every insurance company and agent uses the same class codes—they don’t vary from one provider to another. The higher the risk associated with a class code, the higher the rate you’ll pay for workers’ comp insurance. That’s why accurate classification is so important—it directly affects your premium.

Why It Matters:

• It affects your premium (what you pay)
• It helps insurers understand what type of work is being done
• If your workers are misclassified, you could end up overpaying 

That’s why it’s important to work with a knowledgeable work comp agent who can review your operations and make sure everyone is properly classified. (Spoiler alert: That’s us. 👋)

How Are Workers’ Comp Rates Set in Florida?

In Florida, workers’ comp rates aren’t even set by your insurance company. They’re determined by the National Council on Compensation Insurance (NCCI), which analyzes claims data and job risk across the state. Each class code comes with a base rate per $100 of payroll. So whether your employees are roofers, plumbers, office staff, or retail workers, the rate you pay is tied to how risky the job is based on real claims history. That’s why getting the class code right is so important—it directly impacts your rate. 

So for every type of job (like retail clerk, plumber, roofer, or office worker), there's a specific rate per $100 of payroll. That rate reflects how risky the job is based on real claim data.

For example:

• A low-risk office job might cost $0.25 per $100 of payroll. 
• A higher-risk job like roofing might be $25 per $100 of payroll

Your final rate is determined by:

• Your class codes
• Your total payroll
• Your experience modification factor (if applicable)

What Is an Experience Modification Factor (Mod)?

Not every business has a work comp experience modification. However, iIf your business has had workers’ comp coverage for at least two years and meets a minimum premium threshold, you’ll receive an Experience Modification Factor, or Mod for short. Not every business has a work comp experience modification.

This is a number that adjusts your workers’ comp premium up or down based on your company’s past claims.

Here's how it works:

• Mod of 1.0 = You're exactly average for your industry
• Mod below 1.0 = Fewer claims than average → discounted premium
• Mod above 1.0 = More claims than average → higher premium

Your Mod is based on your:

• Past claims history
• Payroll size
• Industry class codes

Why Jacksonville Businesses Trust Us for Workers' Comp

We’ve been serving Jacksonville and all of Florida since 2005. As a local independent insurance agency, we understand the needs of small business owners in Northeast Florida—and we’re proud to make insurance simple.

Here’s what makes us different:

• ⭐ Over 2,000 five-star Google reviews
• 📞 Real people answering your questions—no call centers
• 🔍 We shop multiple carriers to help you buy the right work comp policy
• 🤝 Friendly, helpful service without pressure or jargon

Ready to Get a Quote?

Whether you're hiring your first employee or reviewing your current coverage, we’re here to help.

👉 Request a Fast, No-Pressure Quote
📞 Or call us today at 904-268-3106

Frequently Asked Questions About Workers’ Compensation in Florida

Do I need workers' comp if I only use 1099 subcontractors?

Yes—possibly. Florida may consider your 1099 subcontractors to be employees depending on how the work is controlled, especially in the construction industry. If you're a contractor, you’re required to make sure your subs carry their own valid coverage.

What happens if I don't have workers’ comp and someone gets hurt?

Florida can issue a stop-work order, assess steep fines, and you may be personally liable for the injured worker's medical costs and lost wages. It’s not worth the risk. We have seen businesses fines up to $10,000 for failure to have workers' compensation insurance.

Can I exclude myself as the business owner?

In most cases, yes. Owners, officers, and members of LLCs can file an exemption from coverage with the state of Florida—unless you're in construction. Construction industry owners can still file an exemption, but only under strict rules. This is done through the state of Florida and not through your insurance company.

Is there a minimum premium in Florida?

Yes. Even if your payroll is small, most carriers have a minimum premium, often in the $500–$1,000 range. We'll help you find the best fit based on your size and industry.

Do I need to carry workers’ comp for part-time employees?

Yes. In Florida, once you reach the employee threshold (e.g., 4 or more employees), it doesn’t matter if they’re full-time or part-time—they count toward the requirement.

How do I apply for workers' comp exemption in Florida?

You can apply through the Florida Division of Workers' Compensation website. It’s free, but you must meet certain criteria. We’re happy to walk you through it or help you check eligibility.

🧠 More Workers Comp Resources for Florida Employers

• ✅ How to Verify Subcontractors’ Workers’ Comp Coverage in Florida
  Learn how to use the state database to confirm your subs are properly insured—avoid fines and liability.
• 🚚 Jacksonville Commercial Auto Insurance Guide
  Understand when to carry commercial auto vs. personal auto policies—especially if your employees drive on the job.
• 📚 View All Florida Workers’ Comp Articles
  Browse our full library of helpful articles, checklists, and guides for Florida employers.

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