Florida small business insurance requirements: workers' compensation thresholds, PIP and contractor liability

Florida: what the state requires of a small business

QUICK ANSWER

In Florida, construction businesses must carry workers' compensation from the first employee (including owners unless exempt), non-construction businesses from four or more employees, and agricultural employers from six regular or twelve seasonal workers. Vehicles must carry $10,000 of personal injury protection and $10,000 of property damage liability. Licensed contractors must maintain public liability and property damage insurance at limits set by the Construction Industry Licensing Board.

Reviewed by CoverMatch licensed agents, Licensed property & casualty agents · Reviewed Oct 11, 2026 Updated Oct 30, 2026

Florida rules with sources
Topic	The rule in Florida	Source
Workers' compensation — construction	Employers in the construction industry must carry coverage with one or more employees, and corporate officers and LLC members count unless they hold an approved exemption (limited to three per company).	Florida Statutes § 440.02(17)(b)2; Division of Workers' Compensation
Workers' compensation — non-construction	Non-construction employers must carry coverage once they have four or more employees, full- or part-time; corporate officers count as employees unless exempted.	Florida Statutes § 440.02(17)(b)1
Workers' compensation — agriculture	Agricultural employers must carry coverage with six or more regular employees, or twelve or more seasonal workers employed more than thirty days in a season.	Florida Statutes § 440.02(17)(b)3
Penalty for being uninsured	The Division issues stop-work orders and assesses a penalty of twice the premium the employer would have paid during the uninsured period, with a minimum penalty.	Florida Statutes § 440.107
Auto — PIP and property damage	Owners of vehicles registered in Florida must carry $10,000 of personal injury protection and $10,000 of property damage liability; bodily injury liability is not required of most private vehicles but is required after certain violations and for some commercial vehicles, and taxis and for-hire vehicles carry higher limits.	Florida Statutes §§ 627.733 and 324.022; Florida Highway Safety and Motor Vehicles
Licensed contractors — liability insurance	Certified and registered contractors must maintain public liability and property damage insurance: at least $300,000 bodily injury and $50,000 property damage for Division I (general, building and residential) licenses, and $100,000 and $25,000 for Division II licenses, with proof on file with the Board.	Rule 61G4-15.003, Florida Administrative Code; Construction Industry Licensing Board

Topic

The rule in Florida

Source

Workers' compensation — construction

Employers in the construction industry must carry coverage with one or more employees, and corporate officers and LLC members count unless they hold an approved exemption (limited to three per company).

Florida Statutes § 440.02(17)(b)2; Division of Workers' Compensation

Workers' compensation — non-construction

Non-construction employers must carry coverage once they have four or more employees, full- or part-time; corporate officers count as employees unless exempted.

Florida Statutes § 440.02(17)(b)1

Workers' compensation — agriculture

Agricultural employers must carry coverage with six or more regular employees, or twelve or more seasonal workers employed more than thirty days in a season.

Florida Statutes § 440.02(17)(b)3

Penalty for being uninsured

The Division issues stop-work orders and assesses a penalty of twice the premium the employer would have paid during the uninsured period, with a minimum penalty.

Florida Statutes § 440.107

Auto — PIP and property damage

Owners of vehicles registered in Florida must carry $10,000 of personal injury protection and $10,000 of property damage liability; bodily injury liability is not required of most private vehicles but is required after certain violations and for some commercial vehicles, and taxis and for-hire vehicles carry higher limits.

Florida Statutes §§ 627.733 and 324.022; Florida Highway Safety and Motor Vehicles

Licensed contractors — liability insurance

Certified and registered contractors must maintain public liability and property damage insurance: at least $300,000 bodily injury and $50,000 property damage for Division I (general, building and residential) licenses, and $100,000 and $25,000 for Division II licenses, with proof on file with the Board.

Rule 61G4-15.003, Florida Administrative Code; Construction Industry Licensing Board

Workers' compensation in Florida

Florida sets the requirement by industry. Construction businesses need coverage from the first employee, and the owners themselves count unless they file exemptions, which the Division limits to three per company. Other businesses reach the requirement at four employees. Enforcement is visible: the Division issues stop-work orders on sites and assesses a penalty of twice the avoided premium.

Auto in Florida

Florida's no-fault system requires personal injury protection and property damage liability on registered vehicles. Bodily injury liability is not a statewide minimum for most private vehicles, which surprises business owners from other states; commercial policies in Florida are written with bodily injury coverage and usually a combined single limit because contracts require it.

Contractors in Florida

The Construction Industry Licensing Board requires certified and registered contractors to keep public liability and property damage insurance at the limits in its rules and to show proof. Licensees also certify their workers' compensation status at renewal. Local jurisdictions add their own competency and permit requirements.

How CoverMatch uses these rules

A Florida business in the wallet is checked against the industry-specific workers' compensation threshold once employees and class are known, against auto requirements on scheduled vehicles, and against the Board's liability limits for licensed contractor classes. Each rule links to its source; a licensed agent reviews this page before publication and when the rules change.

Sources

Questions people actually ask

Does a Florida LLC with two members and no employees need workers' compensation?

Outside construction, no; the four-employee threshold applies and members count toward it. In construction, members count from the first unless they hold an exemption.

Is bodily injury liability really optional for a Florida business vehicle?

The state minimum for most private vehicles is PIP and property damage only, but business vehicles carry bodily injury liability in practice because clients, landlords and lenders require it and because the exposure is real. Commercial policies are written with a combined single limit.

What does a Florida contractor exemption do?

It removes an officer or member from the workers' compensation count and from benefits. Each exemption is filed with the Division, is limited in number per company, and must be renewed.

By business type in Florida