Workers' Compensation in Florida: Class Codes, Audits, and Why the Cheapest Quote Rarely Holds
· Business Insurance
A low workers' compensation quote often means an optimistic class code or understated payroll. Both are corrected at audit, with interest to your cash flow.
Class Codes Drive the Rate
Every job function maps to a class code with its own rate per $100 of payroll. Misclassification is the most common reason a quote is cheap and a renewal is not.
The Premium Audit
Carriers audit actual payroll at the end of the term. If the quote assumed lower payroll or a safer code, the audit bill arrives all at once.
- Keep clean payroll records by class code
- Collect certificates from every subcontractor
- Document clerical vs. field duties
Florida Coverage Requirements
Requirements differ by industry. Construction employers face a threshold of one employee, while most non-construction employers reach it at four, and contractors are responsible for uninsured subcontractors.
Frequently Asked Questions
Do I need workers' comp for one employee in Florida?
In construction, yes. In most non-construction industries the threshold is four employees, including part-time.
Can an uninsured subcontractor cost me money?
Yes. Their payroll can be added to your audit and their injuries can become your claim.
Talk to a Licensed Florida Agent
SunGate Insurance Agency is a locally owned and operated independent agency in Lake Mary, Florida, serving clients across the state. Send us your current declarations page or a competing proposal and we will show you exactly what changed — in writing. Call 407.878.7979 or start with our quote calculator.
Questions about your coverage?
Our licensed agents compare carriers to find the right protection at the right price.