In Florida every insurer starts from the same state-approved rates, so shopping for a lower rate will not work. The savings come from five things you control: job categories, an accurate payroll figure, a clean claims record, the Florida contractor wage credit, and exemptions for up to three qualifying owners. Who this is for: a Florida contractor with 1 to 30 employees who thinks the workers comp bill is too high.
The short version
- Florida insurers use one set of state-approved rates. Two quotes for the same job category start from the same number.
- The biggest savings come from putting each employee in the right job category and keeping office staff out of field rates.
- Florida gives contractors a premium credit based on the hourly wages they pay. You have to apply for it.
- Up to three owners who each hold at least 10 percent can file a $50 exemption that lasts two years.
- Collect proof of workers comp from every subcontractor. Uninsured subs land on your bill at audit.
How is my Florida workers comp price built?
The formula is the same for every Florida insurer: payroll divided by 100, times the rate for each job category (called a class code), times your experience modification, a multiplier based on your claims history. Credits and debits come after.
A multiplier only exists once your premium is large enough to qualify for one. Plenty of small Florida contractors have none, and their premium is simply payroll times the approved rate. Ask your broker whether you are experience rated before you plan around it.
NCCI files one set of rates for Florida and the Office of Insurance Regulation approves them, so insurers can deviate only a little. Those rates fell 1.0 percent on January 1, 2025 and another 6.9 percent on January 1, 2026, the eighth and ninth straight yearly decreases. A further decrease has been proposed for 2027.
Which levers actually move the price in Florida?
| Lever | What to do | How much it can move |
|---|---|---|
| Job categories | Rate office staff as clerical and each field worker in the right trade | Clerical rates at a small fraction of a field category. One misplaced office salary costs thousands. |
| Payroll estimate | Give a realistic figure and report changes mid year | Too high and you lend the insurer money. Too low and the audit bill lands. |
| Claims history multiplier | Report injuries fast, use light duty, close claims | On the same payroll, 1.20 costs 20 percent more than 1.00, and 0.85 costs 15 percent less. |
| Florida contractor wage credit | Apply through your insurer if you pay above average hourly wages | A percentage credit on contracting payroll, sized by your wages |
| Owner exemption | File for up to three qualifying officers or members | Removes each exempt owner's pay from the premium |
| Subcontractor proof | Collect a certificate of insurance or exemption before they start | Avoids paying premium on their payroll at audit |
National version: how to reduce workers comp costs. For Florida prices by trade, see workers comp cost in Florida.
What is the Florida contractor wage credit?
If you pay above average hourly wages, Florida gives you a credit on your workers comp premium. It is worked out from your Florida wages and hours for July through September of the year before, and you apply through your insurer. You can file up to three years after the policy period ends, so a missed year is often recoverable. (The state calls it the Contracting Classification Premium Adjustment Program.)
Should I exempt myself as the owner?
In construction, no more than three corporate officers or LLC members of one company can exempt out. Each must own at least 10 percent and be listed with the Division of Corporations. The Notice of Election to be Exempt is filed electronically with the Division of Workers Compensation, costs $50, and lasts two years. A construction sole proprietor or partner cannot exempt out.
Exempting removes your pay from the premium. It also means no benefits if you are hurt. Weigh both sides in can I exclude myself from workers comp in Florida.
What about my subcontractors?
If a sub shows up without workers comp, Florida law makes you responsible for that sub's injured workers, and your audit picks up their payroll (F.S. 440.10). Two things then set the size of the bill. The payroll belongs in the sub's own trade category, not yours, so check which one the auditor used. And if you cannot show what the sub paid its workers, the insurer charges a percentage of the contract price instead, which is nearly always higher. The sub's certificate, or their payroll records, is what brings the charge down.
What should I never do to cut the bill?
| Tempting shortcut | What Florida does about it |
|---|---|
| Pay crews on 1099s and skip the policy | Stop-work order within 72 hours of a finding, $1,000 a day for working through it, and a penalty of twice the premium you should have paid, with a $1,000 minimum (F.S. 440.107) |
| Hide payroll or call roofers office staff | Workers comp fraud, a felony graded by the dollar amount (F.S. 440.105) |
What this looks like in real life
Illustrative example. It is typical of what we see and is not a promise of how any specific situation would be handled.
The setup: A drywall and framing contractor in Fort Myers has 14 employees. All payroll, including an office manager and a bookkeeper, sits in the carpentry category at several dollars per $100 of pay. That figure is illustrative, not Florida's approved rate.
What went wrong: The premium is about $72,000 a year. Nobody has asked whether the office staff qualify as clerical, whether the owners want to exempt, or whether the wage credit applies.
What it cost: Moving the office pair to clerical, which rates at a small fraction of carpentry, saved about $8,500. Both owner brothers filed $50 exemptions and came off the policy. The wage credit trimmed more. Illustrative savings, roughly $14,000.
The fix: Nothing changed about the business. The savings came from describing it correctly. Ask for a category review and the wage credit at every renewal.
Frequently asked questions
Q: How can I reduce my workers comp costs in Florida?
Put every employee in the right job category, give your insurer an accurate payroll figure, manage claims so your multiplier stays low, apply for the Florida contractor wage credit, and exempt up to three qualifying owners.
Q: Can a different insurance company give me a lower rate in Florida?
Only a little. Florida insurers use the same approved rates with limited deviation. Companies differ on credits, payment plans, and claims handling, so shopping still helps, but the big savings are in how your business is described.
Q: Did Florida workers comp rates go down this year?
Yes. Rates fell 6.9 percent on January 1, 2026, the ninth straight yearly decrease, after a 1.0 percent drop in 2025. A further decrease was proposed for 2027 and awaited a ruling as of early September 2026.
Q: What is the Florida contractor wage credit?
A premium credit for contractors who pay above average hourly wages. It is based on your wages and hours for July through September of the prior year, and you apply through your insurer.
Q: My audit bill came back higher than the whole year's premium. Can I dispute it?
Often, yes. Ask for the audit worksheet and check three things: the category used for each worker, whether uninsured subs were rated in their own trade, and whether the auditor used a percentage of contract price because payroll records were missing.
Q: Is it legal to pay my crew on 1099s to avoid workers comp in Florida?
No. Florida construction has no independent contractor status. A worker is your employee unless they are a covered subcontractor or a validly exempt officer. The state issues stop-work orders and charges twice the premium you should have paid.
How Morrow helps
Morrow is a licensed independent commercial insurance brokerage that works with contractors and trades every day. Reviewing a Florida contractor's workers comp classifications, credits, and exemptions before renewal is one of the most common things we do.
- Free contract review. Send us the contract or bid documents and we mark up the insurance section in plain English, whether or not you buy anything from us.
- Free, instant certificates. Clients issue their own certificates of insurance online in about a minute, any hour, any day, at no charge.
- Markets you cannot reach online. One application, shopped across many insurance companies for general liability, workers comp, auto, umbrella, and pollution coverage.
One more thing. This article is general information and is not legal advice or a statement of coverage. Your contract and your policy wording control in every case. Requirements vary by customer, by state, and by insurance company, so have a licensed advisor review your own contract and your own policy before relying on any of it.
Last updated: Reviewed by the Morrow commercial lines team. Last updated September 2026.