Sometimes it is difficult to determine the workers' compensation coverage requirements for sole proprietors and partners who are not engaged in the construction industry. The general rule is that it is the type of work being performed by the business owned by a sole proprietor/partner as well as and the number of employees working for the sole proprietor/partner’s business that determine when workers' comp coverage is required.
Under Florida law, a sole proprietor or partner not involved construction industry who employs three or fewer full or part-time employees is NOT required to have workers' compensation coverage. And in the non-construction industry, the sole proprietor or partner is NOT counted in the employee count. (Non-construction sole proprietors and partners are automatically excluded from workers’ comp coverage; in fact, they have to file an Election of Coverage if they want to be covered under workers’ comp.)
However, if the sole proprietor or partner engages in the construction industry, they are not eligible to file for a workers’ comp exemption, and they, along with any and all of their employees, must be covered by a workers’ comp insurance policy.
To learn more about Florida's workers' compensation requirements, visit the Division of Workers' Compensation's website at www.myfloridacfo.com/division/wc.
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