FAQ: Frequently Asked Questions
“What is workers’ compensation?”
Workers' compensation is a major expense for most Florida businesses, and it is important for employers to understand their duties and responsibilities under Florida law. When workers' compensation insurance is purchased as required by Florida law, business owners are protected from being sued (unless special circumstances exist) if one of their employees gets hurt or ill at the workplace. Under workers' compensation, when an employee gets hurt on the job, the insurance company will pay all medical bills and partial wage replacement for the employee.
"I'm a contractor looking for workers' comp coverage for my employees. Can you help me?"
Possibly, however, we do not write direct to potential policyholders. You need to contact an approved FUBA Workers' Comp independent insurance agent and have them submit your application to us. Please visit our Request an Agent page and fill out the form or call us at 888-262-4483 and we can recommend one of our many approved agents throughout the state of Florida.
If you have a preferred agency in mind, please include the agency's name and address in the 'Message' section of the form. We will respond to your request promptly.
We have developed a helpful brochure for our construction members designed to assist you in following Florida's workers' comp requirements. Please see our Forms Library and click on "A Contractor's Guide to Workers' Comp" under the "Useful Brochures" section.
“What is FUBA and why do I have to join?”
The Florida workers' compensation law and its accompanying regulations require that all businesses in a self-insurance fund to have a common interest. One way to establish a common interest is to have all insureds become members of a Fund's sponsoring trade association. Our members comply with the law requiring commonality by joining Florida United Businesses Association ("FUBA"). If an insured lets his or her FUBA membership lapse, he or she is no longer legally qualified to be insured through the FCBI Fund.
For more information on the benefits of membership in FUBA, please visit their website at www.fuba.org.
"Who needs to obtain workers’ compensation coverage?”
All businesses (except construction) with 4 or more employees, full-time or part-time. [Corporate officers count as employees unless the officer has applied for and been issued an exemption.]
All construction industry businesses, unless the business owners have exemptions and there are no employees. The owner is included unless he/she specifically files for an exemption. (Please see below for more details on exemptions.)
"Who can get an exemption?"
Only the owners of businesses are allowed to be exempt. Employees are never allowed to exempt out of workers' compensation coverage.
Construction Businesses: Exemptions in the construction industry cost $50 each and must be renewed every 2 years. Exemptions must be applied for online with the Division of Workers' Compensation. >> Click here to apply for an exemption. <<
Corporations - A corporation can exempt up to 3 of its officers. Each officer must own at least 10% of the corporation's stock.
LLC's - An LLC can exempt up to 3 of its owners (called "managing members") and each one must own at least 10% of the LLC.
Sole Proprietors and Partners - Sole proprietors and partners in the construction industry cannot exempt out of workers' comp. Sole proprietors and partners must purchase workers' comp coverage if they wish to remain working legally.
Non-construction Businesses: Exemptions for non-construction businesses are free and last a lifetime* or until they are revoked by the exemption holder. Business owners can get an exemption by filing form DWC 250 - Notice of Election to be Exempt. Exemptions must be applied for online with the Division of Workers' Compensation. >> Click here to apply for an exemption. <<
Corporations - Officers of a corporation are those people who own the corporation and hold an office on its Board of Directors. Non-construction businesses can exempt all of their officers - there is no limit to the number of exemptions. There is no charge for an exemption for a corporate officer whose company is not construction-related.
LLC's - Currently, there is no mechanism in the law for LLC owners of non-construction businesses to receive exemptions. It is up to individual insurance companies whether to include or exclude LLC owners from workers’ compensation coverage.*
*However, effective July 1, 2013, owners of non-construction LLC's will be considered employees unless they receive an exemption.
Sole Proprietors and Partners - Sole proprietors and partners are automatically excluded from workers' comp; they do not have to get an exemption. If they wish to be covered by workers' compensation, they must file form DWC 251 - Election of Coverage with the Division of Workers' Compensation. If they want to go back to being excluded from workers' comp, they can file form DWC 251R - Revocation of Election of Coverage.
"I need to be insured by an A.M. Best rated company. Is FUBA Workers' Comp rated?"
FUBA Workers’ Comp provides coverage through the Florida Citrus, Business & Industries Fund (FCBI). FCBI is a self-insurance fund, and no funds in Florida have an A.M. Best rating at this time. While it would be possible for a self-insurance fund to obtain a rating, we believe A.M Best’s rating system stresses an importance on accumulating assets, while we emphasize an aggressive return of surplus to qualifying participants.
We are aware that our lack of a rating could affect our members, which is why our trade association, FUBA, was instrumental in helping to pass s.627.442, Florida Statutes. Under this law, any person who requires a subcontractor to have a workers’ compensation policy cannot reject that policy pursuant to a construction contract on the basis that it is issued by a self-insurance fund that is not rated by a nationally-recognized rating service.
>> Click here for a copy of Florida Statute 627.442 <<
FCBI is regulated by the Florida Office of Insurance Regulation and secures the required statutory excess coverage through Safety National Casualty Corporation, which has a rating of A (Excellent) by A.M. Best.
>> Click here for a copy of our excess carrier's A.M. Best rating <<
You may also visit www.ambest.com for more information.
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