In Florida, your LLC needs workers compensation based on your industry and how many employees you have, not simply because you formed an LLC. If your LLC does construction work it needs coverage from the first employee; if it does anything else, coverage kicks in at four or more employees. If you own at least 10 percent of the LLC, Florida treats you like a corporate officer, so you are counted as an employee and covered by default unless you file an exemption to opt out.
Who this is for: Florida LLC owners deciding whether they need workers comp for themselves and for anyone they hire. Workers comp pays medical bills and part of lost wages after a work injury.
The short version
- Employees set the requirement. Construction needs coverage at one employee, non-construction at four.
- Members are counted by default. A member who owns at least 10 percent is an employee for coverage unless they file an exemption.
- A 10 percent member counts as an officer. Florida treats a member owning at least 10 percent of the LLC like a corporate officer for exemption purposes.
- You can elect out with an exemption. An eligible member files a Certificate of Election to be Exempt with the state.
- Construction caps exemptions. No more than three owners of a construction business can be exempt, and each must own at least 10 percent.
How your LLC's industry changes the answer
Florida treats a member who owns at least 10 percent like a corporate officer, counted and covered by default, and the trade you are in decides how the exemption works.
| Your LLC's work | Coverage required at | Are members counted? |
|---|---|---|
| Construction | 1 or more employees | A working member is an employee unless validly exempt |
| Non-construction | 4 or more employees | Members counted like officers by default; file an exemption to opt out |
Members, exemptions, and the 10 percent rule
If your LLC does non-construction work, a member who owns at least 10 percent is treated like a corporate officer: counted toward your employee total and covered by default, opting out only by filing a Certificate of Election to be Exempt. No more than 10 members of a non-construction LLC may be exempt at once. Construction is stricter. A member who actively works in the construction business is treated as an employee and counts toward the one-employee trigger unless that member files a valid exemption. Florida lets a member who owns at least 10 percent of the LLC file a Certificate of Election to be Exempt, the same route corporate officers use. In construction, no more than three owners can be exempt at once and each must own at least 10 percent; a construction exemption costs $50 and lasts two years, while a non-construction exemption is free.
A quick Florida example
Illustrative, not a quote. A Miami LLC that does interior renovation has two members who each own half and one hired laborer. Both members can file exemptions, because each owns more than 10 percent and the business is under the three-owner cap, but the hired laborer still must be covered from day one, since construction is a one-employee rule. If the same two members instead ran a bookkeeping practice with one part-time clerk, no policy would be required yet, because the two counted members plus the clerk make only three employees, one below the non-construction four-employee trigger, and either member could still file an exemption.
Real questions Florida owners ask
Does forming an LLC in Florida remove the need for workers comp?
No. Your LLC's duty to carry comp depends on your industry and headcount, not the LLC form. Construction needs coverage at one employee, and non-construction at four or more.
Am I covered by my own LLC's workers comp policy?
If you own at least 10 percent, yes by default. Florida treats such a member like a corporate officer, so you are counted and covered unless you file a Certificate of Election to be Exempt to opt out. In construction, a working member is covered the same way unless validly exempt.
Can I exempt myself as an LLC member?
Yes, if you own at least 10 percent of the LLC, because Florida treats such a member like a corporate officer. You file a Certificate of Election to be Exempt with the state.
How many owners of a construction LLC can be exempt?
No more than three, and each must own at least 10 percent of the company. A construction exemption costs $50 and lasts two years.
Do I need comp for employees even if all the members are exempt?
Yes. Exemptions only cover owners. Any non-member employee still triggers coverage, at one employee in construction and four in non-construction.
Is a non-construction LLC member ever required to be covered?
Yes. A member who owns at least 10 percent is treated like a corporate officer, counted and covered by default. Unless that member files a Certificate of Election to be Exempt, they stay part of the coverage the LLC owes once it reaches four counted employees.
Does a single-member LLC need workers comp?
Usually not, for a single non-construction member. That member counts as one employee but stays below the four-employee trigger, so no policy is required unless you hire enough staff to reach four. A single construction member is treated as an employee and generally needs coverage unless properly exempt.
Why Florida owners choose Morrow
- We shop the right market for you. Florida is a private, competitive market with no state fund, so you buy workers comp from private insurers the state authorizes, and Morrow shops several of them to fit your trade and budget instead of leaving you with one option.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Florida guides
Every Florida business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Florida (start here)
- Workers comp: the owner's overview
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Hiring your first employee: what changes
- What workers comp does not cover
- Contractor workers comp in Florida
This guide is general information, not legal advice. Florida rules and penalty amounts can change, so verify current requirements with the Florida Division of Workers' Compensation or a licensed advisor before you rely on them. Last updated: July 2026.