If you have employees in Florida, Workers’ Compensation Insurance can be an important part of protecting both your employees and your business. It provides benefits to employees who suffer a compensable work-related injury or illness and helps businesses handle the costs associated with those claims.
When Is Workers’ Compensation Required in Florida?
Florida's requirements depend on the type of business.
Non-Construction Businesses
Most non-construction businesses with 4 or more employees, including full-time and part-time employees, are generally required to carry workers' compensation coverage.
Construction Businesses
Construction businesses have a much lower threshold. Generally, a construction employer with 1 or more employees is required to carry workers' compensation coverage. This can include certain owners, depending on their status and whether they qualify for an exemption.
Because Florida's rules can vary based on the type of business and how owners and workers are classified, it's important to verify the requirements for your specific business.
What Does Workers’ Compensation Cover?
Workers' compensation generally provides benefits for qualifying work-related injuries and illnesses.
Medical Expenses
Workers' compensation can pay for authorized, medically necessary treatment related to a work injury, including:
Doctor visits
Hospitalization
Physical therapy
Medical testing
Prescription medications
Other necessary medical care
Lost Wages
If an employee is unable to work because of a covered work-related injury, they may qualify for wage-replacement benefits.
In Florida, temporary total disability benefits are generally 66⅔% of the employee's average weekly wage, subject to the applicable state maximum. Benefits generally do not begin until after the first seven days of disability, although the first seven days may become payable if the employee remains disabled for more than 21 days.
For 2026, Florida's maximum workers' compensation weekly benefit rate is $1,358.
Why Is Workers’ Compensation Important for Businesses?
A workplace injury can result in significant medical expenses, lost wages and other costs.
Workers' compensation insurance helps provide benefits to an injured employee while helping the business manage covered workplace injury claims.
It can be particularly important for businesses with employees who perform physical work, operate equipment, drive vehicles, work at customer locations or face other workplace hazards.
What About Subcontractors?
Business owners should be careful when hiring subcontractors.
In Florida construction, contractors can have workers' compensation responsibilities involving subcontractors and their employees. Florida law generally requires employers to secure workers' compensation coverage, and contractors should verify that subcontractors have the required coverage before they begin work.
A Certificate of Insurance (COI) can help document that a subcontractor has workers' compensation coverage, but businesses should make sure the coverage is actually appropriate and current.
Workers’ Compensation vs. General Liability
These two coverages are often confused.
Workers' Compensation primarily addresses qualifying injuries or illnesses suffered by employees in the course and scope of employment.
General Liability generally addresses third-party claims, such as a customer being injured at your business or your business causing property damage to someone else.
Many businesses need both coverages.
What Determines the Cost of Workers’ Compensation?
Workers' compensation premiums can depend on factors such as:
Type of business and employee classifications
Payroll
Number of employees
Claims history
State-approved rates and rules
Experience modification, when applicable
Accurately reporting employee duties and payroll is important because different types of work can carry significantly different levels of risk.
Protect Your Business and Your Employees
Workers' compensation isn't just about meeting an insurance requirement. It provides an important system for helping employees receive medical care and wage-replacement benefits after qualifying workplace injuries while helping businesses manage those claims.
If you own a business in Vero Beach, Sebastian, Fort Pierce or throughout the Treasure Coast, Safeguard Insurance can help you review your workers' compensation requirements and coverage options.
The right workers' compensation policy depends on your business, employees, payroll and type of work.