Can Florida Contractors File For Workers’ Comp?

In Florida, workers’ comp covers a contractor’s employees as long as certain conditions are met as an independent contractor.

Florida defines an independent contractor as one who pays their own business and travel expenses, provides their own tools, works for more than just one company at a time, has the opportunity to profit from the work, and has control over the time and manner in which they perform their services.

Sole partners and proprietors are not included from workers’ comp law. However, they can purchase their own coverage by filing for the election of coverage. If it is a construction business, they must carry workers’ compensation insurance for each employee they have, including any contractors.

What About Subcontractors?

When hiring subcontractors, you typically don’t need workers’ compensation coverage for them. However, you will need proof that the subcontractor has their own coverage. If they get hurt while on site and working on the project you hired them for, and you fail to check their insurance coverage, you will be responsible for the benefit payments.

Occupations in Florida

According to information from the US Bureau of Labor Statistics from 2020, Florida reported a total of 275 fatal work injuries. Some of the injuries reported resulted from a fatal event or exposure. Transportation incidents resulted in 90 fatal work injuries and trips, slips, and falls, accounting for approximately 77 fatalities that same year.

The construction industry ranks high on the list of fatal occupations in Florida. Out of the fatal work injuries Florida reported in 2020, 85 percent worked for wages and salaries, and the rest were self-employed or subcontracted.

Independent Contractor vs Employee

When determining workers’ compensation benefits and coverage for your business, it is important to understand the differences between an independent contractor and an employee. If you pay someone as a contractor and send them a 1099 at the end of the year, you most likely do not have to have workers’ compensation coverage for them.
 However, if they perform job duties that can be considered core business tasks, they do not have control over their schedule, and they operate within business hours, then many argue that they should be considered employees. In this case, you will need to have coverage for them in case they are injured while on the job.

What If You Don’t Have Workers’ Comp in Florida?

If you fail to have proper workers’ compensation coverage in Florida, your business may be issued a stop order by the Florida Division of Workers’ Compensation. You can also potentially be charged with a felony and have to pay twice the amount you would have initially paid in premiums for up to two years. Ultimately, your business could be shut down.

So, can an independent contractor file a workers’ comp claim in Florida? The answer is no, with the exception of an independent contractor that is working or performing services in the construction industry per Florida Statute 440.02.

What Does a Contractor Need From a Subcontractor to Verify Coverage?

Before the job starts, the contractor must obtain proof of the subcontractor’s workers’ compensation insurance policy (as we mentioned previously), a screen grab found on the Division of Workers’ Compensation Proof of Coverage database, and a certificate of liability insurance confirming that the insurance is in currently active.

What Is the Cost of Workers’ Comp Coverage?

The cost depends on the business's payroll, the type of work performed, and the employer’s claim history. If a workplace safety program is in place, the employer may receive a discount.

If you are an independent or subcontracted individual and need workers’ compensation coverage, you can contact an insurance agent from an association like Professional Insurance Agents of Florida or the Florida Association of Insurance Agents.

For more information about subcontractors and insurance coverage, review the information in Florida Statute 440.10.

Have questions about workers’ compensation benefits in Florida, or are you having difficulty with a claim? Consult an experienced workers’ compensation attorney who can help you navigate the process.