Don’t Forget to File or Renew your Florida Workers’ Comp Exemption
In the state of Florida, owners of corporations and Limited Liability Companies (LLC’s) are included for workers’ compensation coverage and its correlating premium cost determination. Owners may however opt out of this requirement and specify their exclusion by filing an exemption through the state of Florida’s Division of Workers Compensation Website. Although Sole Proprietorships and Partnerships are not eligible to file an exemption with the state of Florida, both LLC’s and Corporations routinely exclude their members or officers from workers comp coverage which significantly reduces their annual premium.
When initially applying for an exemption there are a few crucial elements to keep in mind. The most prominent issue to remember is that, as a corporate officer or LLC owner receiving an exemption, you would not be entitled to workers’ compensation benefits should you be hurt on the job. If an owner or officer is injured and has filed an exemption, they are unable to make a claim on their policy or the policy of a contractor.
Another key factor to remember is that the rules governing the exemption process are dependent upon the primary industry of your company. It is broken down between construction companies and non-construction companies. The exemption process within the construction industry isn’t as lenient as it is within other industries. Construction companies may only file up to 3 exemptions at a cost of $50 for each owner or officer. This can be problematic if your Corporation or LLC has 4 or more owners, as you would be unable to exempt everyone with ownership. In comparison, up to 10 different owners from the same non-construction company can exempt themselves, and there is absolutely no cost to do so.
The third component to remember when pursuing a workers’ compensation exemption is the renewal process. Exemptions are only valid for 2 years and must be renewed by each owner/officer. If an owner exemption is not renewed, or if there is a gap between the expiration and renewal date, it is very likely that your workers’ compensation carrier will include the owner’s payroll amounts during the audit process, generating an additional premium amount on your workers comp policy. Therefore, it is imperative that corporate officers and LLC members stay up to date with their exemption.
The Florida Division of Workers’ Compensation website also allows owners to renew their exemptions through a painless online process. The link to renew your exemption can be found here: https://apps.fldfs.com/bocexempt/. If you have any questions regarding Workers Compensation insurance or filing a Florida Exemption, we recommend contacting a Moore Resources Insurance professional.
Moore Resources is an Independent Insurance Agency located in St. Petersburg, FL and offering Homeowners Insurance, Auto Insurance, Personal Insurance and Business Insurance. Our reach extends beyond the Tampa Bay area to the entire state of Florida. Moore Resources has regionally been dedicated to serving the local residents of Pinellas, Hillsborough, Polk, Pasco, Manatee and Sarasota counties; including St. Pete, Tampa, Clearwater, Bradenton, Brandon, Dunedin, Gulfport, Lakeland, Largo, Lutz, Palm Harbor, Pinellas Park, Riverview, Ruskin, Seffner, Seminole, Temple Terrace, Tierra Verde, Town n Country, and the Gulf Coast Beaches.
The purpose of this blog is to present general information only. It does not interpret specific policies or coverage. In order to obtain detailed information regarding your insurance, contact a licensed insurance agent.
