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According to the Florida division of workers compensation an employer in the state of Florida engaged in the construction industry that employs one or more employees must have workers compensation insurance unless that employer elects to be exempt from workers compensation in order to be exempt an employer in the construction industry must meet the following major requirements the company must be registered with the division of corporations of the Florida Department of State so the kicker there is you have to be a corporation or LLC the applicant seeking the exemption must be an officer of the corporation and the applicant must own a minimum of 10 percent of the company no big deal right so why wouldn't any small construction company owner want to save money by electing to exempt himself here are 4 good reasons against it 1 forming a corporation or LLC and requesting exempt status is very time-consuming and expensive and maintaining the company in that form will require a heavy burden in the form of ongoing bureaucracy and paperwork to almost all commercial construction jobs require companies to have workers compensation insurance so you will greatly limit the amount of work available to you 3 for your employees to be exempt you will have to make every one of them minimum 10 percent owners of your company and for the cost of on the job injuries could put you out of business so is there a better solution absolutely for a very small percentage of your payroll you can hire a professional employer organization or PEO take care of workers compensation and other employee related matters for you it can save you money and it will definitely save you time to learn more visit you see Emory cross dot-com don't let workers compensation be a headache that drives you out of business let us take care of the house.