What Happens If Your Business Does Not Carry Workers Compensation Insurance in Florida?

Operating without required workers compensation insurance in Florida can result in a stop-work order that shuts down business operations immediately, fines of up to twice the amount of premium the business evaded over the preceding two years, and personal liability for the full cost of any workplace injury that occurs while uninsured.

Which Florida Businesses Are Required to Carry Workers Compensation?

Florida requires workers compensation for construction industry employers with one or more employees, including the owner in many cases, and for non-construction employers with four or more employees. Agricultural employers have separate thresholds. Even businesses that believe they are exempt should confirm their status, since misclassifying employees as contractors is a common and costly mistake.

What Are the Penalties for Not Carrying Workers Compensation in Florida?

The Florida Division of Workers’ Compensation can issue a stop-work order that immediately halts all business operations at every location until the business obtains coverage and pays applicable penalties. Penalties are calculated as twice the amount of evaded premium over the prior two years, which frequently runs into tens of thousands of dollars even for smaller businesses.

Does an Uninsured Business Owner Face Personal Liability for a Workplace Injury?

Yes. Without workers compensation coverage, an injured employee can pursue a civil lawsuit directly against the business and its owners for the full cost of medical care and lost wages, without the liability limits and legal protections that a workers compensation policy would otherwise provide.

Related Reading

• Workers Compensation Insurance Florida: A Guide for Small Business Owners