Workers’ compensation feels abstract until the day an employee gets hurt. That day it becomes the most important policy you own: it pays medical bills and lost wages, and it protects you from most lawsuits over workplace injuries. This guide covers who must carry it in Florida and New York, what it costs in 2026, what it covers and excludes, and how to lower your premium.
What is workers’ compensation?
It is state-mandated insurance that pays benefits to employees who are injured or become ill because of their work. It is a “no-fault” system: the employee receives benefits without proving negligence and, in exchange, generally cannot sue the employer over that injury.
It covers workplace accidents, repetitive-strain injuries, occupational illnesses and, in many cases, injuries during work travel.
Who must carry it in Florida
| Type of business | Required from |
|---|---|
| Non-construction (restaurants, retail, offices, cleaning, transportation) | 4 or more employees |
| Construction (contractors and subcontractors) | 1 employee |
| Agricultural | 6 regular employees, or 12 seasonal for more than 30 days |
Part-time employees count toward the threshold, as do corporate officers without a current exemption.
Restaurants, cafés and food trucks
A Florida restaurant needs workers’ comp once it reaches 4 employees, counting part-time and seasonal staff. With headcount swinging between high and low season, it is easy to cross that line without noticing. See restaurant insurance in Florida and restaurant insurance in Miami.
Exemptions for owners and officers
In non-construction businesses, up to three corporate officers or LLC members can apply for an exemption with the Florida Division of Workers’ Compensation. Exemptions last two years and must be renewed. An exempt owner does not count as an employee, but is not covered if injured. Construction exemptions have stricter requirements.
Florida penalties
- Immediate stop-work order at every location until coverage is in place and the penalty is paid
- A penalty of twice the premium that should have been paid during the uninsured period (up to two years), or $1,000, whichever is greater
- Personal liability for medical bills and wages from any injury that occurred without coverage
Florida rates in 2026
Starting January 1, 2026, Florida workers’ comp rates dropped an average of 6.9% for new and renewal policies. It is the ninth consecutive decrease, approved by the Office of Insurance Regulation on NCCI’s filing. A policy that cost $10,000 could renew around $9,300, before changes in payroll, classifications or experience mod.
The maximum weekly benefit for injuries on or after January 1, 2026 is $1,358.
Who must carry it in New York
New York is much stricter: nearly every employer with at least one employee, even part-time, must carry workers’ comp, and coverage must be continuous with no gaps between policies.
The definition of employee is broad: it includes day laborers, leased employees, family members on payroll, domestic workers employed 40 or more hours a week and, in many cases, subcontractors without their own coverage. That is why New York general contractors usually require a workers’ comp certificate from every sub. If you work in construction in the city, see NYC contractor insurance.
Employers must also post the official notice of coverage, with their carrier’s details, in a visible place.
New York penalties
- Employers with 5 or fewer employees: a misdemeanor, with a fine of $1,000 to $5,000
- Employers with more than 5 employees: a felony, with a fine of $5,000 to $50,000
- Civil penalties of up to $2,000 for every 10-day period without coverage
- Personal liability for the costs of injuries that occurred without coverage
What it covers
- Medical expenses: emergency care, hospital, surgery, prescriptions and physical therapy tied to the injury
- Lost wages: generally two-thirds of the average weekly wage, up to the state maximum
- Permanent disability: partial or total, depending on the injury
- Death benefits: funeral expenses and payments to dependents
- Employer’s liability (Part B): related lawsuits that fall outside the workers’ comp system
What it doesn’t cover
- Injuries the employee caused intentionally
- Injuries where alcohol or drugs were a cause, under each state’s rules
- Personal activities outside of work
- True independent contractors, although misclassifying an employee as a contractor is one of the most common audit problems
Also review your Part B limits. Standard limits of $100,000 / $500,000 / $100,000 can fall short, and raising them usually costs little.
How the premium is calculated
(Payroll ÷ 100) × class rate × experience mod = premium
- Payroll: what you pay per year, split by type of work
- Class rate: each classification code has its own rate based on the risk of the work
- Experience mod (EMod): 1.0 is average; below 1.0 you pay less, above 1.0 you pay more
At the end of each policy year the carrier audits actual payroll. If it was higher than estimated, you pay the difference.
Illustrative Florida rates (2026)
| Type of work | Per $100 of payroll | With $500K payroll |
|---|---|---|
| Office / clerical | $0.30–$0.60 | $1,500–$3,000 |
| Retail | $1.00–$2.50 | $5,000–$12,500 |
| Restaurant / food service | $2.00–$4.00 | $10,000–$20,000 |
| Landscaping | $6.00–$10.00 | $30,000–$50,000 |
| Carpentry / general construction | $10.00–$18.00 | $50,000–$90,000 |
| Structural steel / ironwork | $20.00–$30.00 | $100,000–$150,000 |
| Roofing | $25.00–$35.00 | $125,000–$175,000 |
Illustrative estimates, not quotes. Your actual rate depends on the class code, your experience mod and each carrier.
Common mistakes
- Classifying employees as contractors. If they work under your direction, with your tools and mainly for you, they are probably employees.
- Underestimating payroll. The audit catches it and bills the difference later.
- Using the wrong class codes. They change the rate and create audit problems.
- Ignoring the EMod. A 1.25 mod means paying 25% more, and the calculation can contain errors.
- Not reviewing Part B limits.
How to lower your premium
- Safety: fewer claims lower your EMod and your premium
- Return to work: light duty for recovering employees reduces claim costs
- Report fast: late-reported claims cost more
- Review your EMod every year: data errors are more common than most owners think
Need a workers’ comp quote or review in Florida or New York?
Email your estimated payroll by type of work, number of employees, current policy and 3 years of loss runs to adolfo@nextguardinsurance.com. We review your classifications and EMod before going to market, and most standard businesses get a quote within 48 hours. We work in English, Spanish and Portuguese, backed by an international broker with access to A-rated carriers.
Frequently asked questions
Is workers’ compensation required in Florida?
Yes. Non-construction businesses need it at 4 or more employees, counting part-time staff. Construction businesses need it from the first employee. Agricultural employers need it with 6 or more regular employees, or 12 or more seasonal workers who work more than 30 days in a season.
Is workers’ compensation required in New York?
Yes, for nearly every employer with at least one employee, including part-time, and coverage must be continuous. There is no minimum number of employees.
Does a Florida restaurant need workers’ compensation?
Yes, once it has 4 or more employees, including part-time and seasonal staff. The 1-employee rule applies to construction, not restaurants.
How much does workers’ comp cost in Florida in 2026?
It depends on payroll, the class code for each job and your experience modifier. Florida rates dropped an average of 6.9% for new and renewal policies starting January 1, 2026. As an illustrative reference, office work can cost under $1 per $100 of payroll, while roofing can exceed $25.
What happens if a Florida business has no workers’ comp?
The state can issue an immediate stop-work order and a penalty of twice the premium that should have been paid during the uninsured period (up to two years), or $1,000, whichever is greater. The business is also responsible for the costs of any injury that occurred without coverage.
Can a business owner be exempt from workers’ comp in Florida?
Yes. In non-construction businesses, up to three corporate officers or LLC members can apply for an exemption with the Florida Division of Workers’ Compensation. Exemptions last two years, and an exempt owner is not covered if injured. Construction exemptions are stricter.
What is the maximum weekly workers’ comp benefit in Florida in 2026?
$1,358 per week for injuries on or after January 1, 2026. The standard benefit is two-thirds of the worker’s average weekly wage, up to that maximum.
What do I need for a workers’ comp quote?
Estimated annual payroll by type of work, number of employees, your current policy if you have one, three years of loss runs and, if available, your experience modification worksheet. With that, most standard businesses get a quote within 48 hours.
