FAQ: Most Frequently Asked
“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 the public. You need to contact an approved FUBA Workers' Comp independent insurance agent and have them submit your application to us. You may email or call us at 888-262-4483 and we can recommend one of our many approved agents throughout the state of Florida.
We also provide a helpful brochure to our construction members designed to assist you in following Florida's workers' comp requirements.
>> Click here for our FREE Contractor's Guide to Workers' Comp <<
“Why do I have to join FUBA?”
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.
"Who needs to obtain workers’ compensation coverage?”
All businesses (except construction) with 4 or more employees, full-time or part-time. [Corporate officers do count as employees unless the officer has applied for and been issued an exemption.]
All construction industry businesses. 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.
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.
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.
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.
LLCs - Just like sole proprietors and partners, owners of LLCs 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.
Construction Businesses: Exemptions in the construction industry cost $50 each and must be renewed every 2 years. Business owners can get an exemption by filing form DWC 250 - Notice of Election to be Exempt, the same form for non-construction businesses, but there are stricter requirements as to who can get an exemption in the construction industry.
Sole Proprietors and Partners - Since January 2004, sole proprietors and partners in the construction industry cannot exempt out of workers' comp. Sole proprietors and partners must now purchase workers' comp coverage if they wish to remain working legally.
Corporations - A corporation can exempt up to 3 of its officers. Each officer must own at least 10% of the corporation's stock.
LLCs - An LLC can exempt up to 3 of its owners (called "managing members") and each one must own at least 10% of the LLC.
"I have heard that I need to be insured by an A.M. Best rated company. Is FUBA Workers' Comp rated?"
As a self-insurance fund, the Florida Citrus, Business & Industries Fund (FCBI), also known as FUBA Workers' Comp, is not required to be rated like other insurance companies. Because self-insurance funds in Florida do not have ratings, FCBI does not have an A.M. Best rating at this time. However, under a new law that became effective July 1, 2007 (Senate Bill 1748), any person who requires a sub to have a workers’ compensation policy cannot reject that policy 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 Senate Bill 1748 <<
FCBI secures its required excess coverage through National Union Fire Insurance Company of Pittsburgh, which has a rating of A+ (Superior) by A.M. Best. You may visit www.ambest.com for more information or a copy of their rating.
Additionally, FCBI is covered by the Florida Workers' Compensation Insurance Guarantee Association, which would pay claims in the event FCBI could not.
Return To Top
| 
