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 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.
"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 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 involved in the construction industry can exempt up to 3 of its officers. Each officer must own at least 10% of the corporation's stock.
LLC's - An LLC involved in the construction industry 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 to comply with Florida law.
Non-construction Businesses: Exemptions for non-construction businesses are free 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 - Officers of a corporation are those people who own the corporation and hold an office on its Board of Directors. Corporate officers are subject to workers' compensation unless they have a valid exemption on file with the State of Florida. Non-construction corporations 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 - Effective July 1, 2013, owners of non-construction LLC's (also called "members" or "managing members") are subject to workers' compensation unless they have a valid exemption on file with the state of Florida.
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.
You may also visit www.AMBest.com for more information or email us for a copy of Safety National's rating.
“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.
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