Does every Florida construction business need workers’ comp?
Almost always yes. Florida law requires workers’ comp coverage in the construction industry at one or more employees, including business owners and corporate officers. This is much stricter than the 4-employee threshold that applies to most other industries.
Construction officers can file an exemption with the state, but the rules are tighter than for non-construction businesses, and only a limited number of officers per company can be exempt. If you’re a sole proprietor doing construction work alone, you’re generally not required to cover yourself, but you may need coverage to win contracts.
What happens if my subcontractors don’t have their own coverage?
If a sub on your jobsite doesn’t have valid workers’ comp coverage or a valid exemption, Florida treats that sub as your employee for workers’ comp purposes. That means:
Their payroll counts toward your premium calculation. If they get injured, your policy pays. At your annual audit, the carrier will charge you for those wages.
This is the single biggest source of audit surprises in the construction industry. ClearPalm helps you collect Certificates of Insurance from every sub before they start work, and we flag exemptions that aren’t on file. If you’re a GC, this is the process that protects your premium.
Why is my workers’ comp premium so high?
Premium comes from three things:
What is pay-as-you-go workers’ comp & why does it matter for contractors?
Traditional workers’ comp asks for a large deposit upfront based on estimated payroll, then reconciles at the end of the year through an audit. If you guessed too low on payroll, you owe a big check. If you guessed too high, you wait months for a refund.
Pay-as-you-go ties the premium to your actual payroll each pay period. As payroll goes up or down with project volume, the premium adjusts automatically. No big deposit, no surprise audit bill. This is especially useful in construction where payroll swings month to month based on job starts and weather.
What Makes ClearPalm Different
A Client-first approach built on experience, trust, & real results.
Real Results That Make a Difference
We Reduce up to
40%
in payroll administrative time
We Save businesses an average of
$4,800
in payroll fees, each year!
We Bundle your insurance to save
$7,200
on average
Based on ClearPalm client data.
Trusted by Florida Business Owners
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