Are Subcontractors Required to Carry Workers Compensation Insurance in FL?

When people hire a contractor, the provider often subcontracts certain types of work. There’s always the potential for an accident and homeowners want to know that they won’t be held liable if an injury or fatality occurs.

The answer to the question is yes. All subcontractors in Florida must provide Workers Compensation insurance for their employees in the event of an on-the-job illness, injury or death. Contractors are responsible for ensuring that the subcontractors they hire provide proof of coverage before any work can commence. If the subcontractor doesn’t have coverage, they’re covered under the contractor’s policy.

Workers Compensation insurance provides coverage for medical costs, lost wages, rehabilitation, and death benefits. It’s important coverage for workers that perform essential services whether they’re rebuilding a home after a disaster or repairing a plumbing problem. Individuals don’t want their homeowner’s insurance to be liable for expenses if a subcontractor is injured or killed.

The coverage requirements are based on the number of employees and the industry. In Florida’s construction industry, employers that have 1 or more employees or own a limited liability company (LLC) are required to have Workers Compensation. Florida defines trades in the construction industry as roofers, well drillers, landscapers, flooring installers, electricians, and carpenters – to name a few.

Some construction companies often operate in multiple states or come to help rebuild after hurricanes. They must notify the State that they’re conducting business in Florida and provide Workers Compensation insurance that meets the State’s specific requirements. In some instances, out-of-state construction companies are allowed to work temporarily in Florida under the Workers Compensation coverage of their home state.

In most instances, a homeowner’s insurance policy will cover any injury that happens on the insured’s property and that includes contractors and workmen. The exception is if the injury occurred as the result of the homeowner’s negligence or carelessness, in which case, homeowners may be held liable.

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The Sena Group
6501 Congress Ave., Ste. 100
Boca Raton, FL 33487