69L-6.032. Contractor Requirements For Obtaining Evidence That Subcontractors Possess Workers' Compensation Insurance or Otherwise Comply with Chapter 440, F.S.

(1) In order for a contractor who is not securing the payment of compensation pursuant to Section 440.38(1)(a), F.S., to satisfy its obligation to obtain evidence of workers’ compensation insurance or a Certificate of Election to Be Exempt from a subcontractor pursuant to Section 440.10(1)(c), F.S., such contractor shall obtain and provide to the Department, when requested, the evidence specified in subsections (2), (3), (4), or (5) herein.

(2) If a workers’ compensation insurance policy has been issued to the subcontractor, the contractor, as described in subsection (1) of this rule, may obtain one of the following documents as evidence of workers’ compensation insurance for a subcontractor:

(a) A copy of the “Information Page” of the subcontractor’s workers’ compensation insurance policy;

(b) A screen print from the Division of Workers’ Compensation, Proof of Coverage database confirming that workers’ compensation coverage is in effect for the subcontractor. The Proof of Coverage database can be accessed from the Division’s website at https://dwcdataportal.fldfs.com/ProofOfCoverage.aspx; or

(c) A Certificate of Liability Insurance and written documentation obtained either from the producer or carrier confirming that workers’ compensation coverage is in effect for the subcontractor. Written documentation may include a screen print from the Division of Workers’ Compensation, Proof of Coverage database. The Certificate of Liability Insurance shall include the following information and documentation in order to be considered valid evidence of workers’ compensation insurance for purposes of this rule:

1. The producer section lists the producer’s name, address, and phone number;

2. The Insurers Affording Coverage section lists the name of the carrier that is providing workers’ compensation insurance;

3. The name of the subcontractor is listed as the insured;

4. The proper policy number is provided for the Workers’ Compensation and Employers’ Liability Insurance, or binder number if the policy has not been issued as of the date of the issuance of the Certificate of Liability Insurance;

5. The dollar limits of coverage are listed for the Workers’ Compensation and Employers’ Liability Insurance;

6. An authorized representative has signed the Certificate of Liability Insurance;

7. The date(s) the work is being performed by the subcontractor for the contractor falls within the Policy Effective and Policy Expiration dates listed on the Certificate of Liability Insurance.

(3) If a subcontractor is a client company of an employee leasing company licensed pursuant to Part XI, Chapter 468, F.S., the evidence of workers’ compensation insurance from a subcontractor shall be a Certificate of Liability Insurance and a list of the employees leased to the subcontractor obtained from the professional employer organization or employee leasing company as of the date the subcontractor commenced work for the contractor on each project. The Certificate of Liability Insurance shall include the following information and documentation in order to be considered valid evidence of workers’ compensation insurance:

(a) The producer section lists the producer’s name, address, and phone number;

(b) The Insurers Affording Coverage section lists the name of the carrier that is providing workers’ compensation insurance;

(c) The professional employer organization or employee leasing company name is listed as the insured;

(d) The proper policy number is listed for the Workers’ Compensation and Employers’ Liability Insurance;

(e) The dollar limits of coverage are listed for Workers’ Compensation and Employers’ Liability Insurance;

(f) An authorized representative has signed the Certificate of Liability Insurance;

(g) The date the Certificate of Liability Insurance is issued precedes the date the subcontractor commenced work on each project for which the contractor sublet any part or parts of his or her contract work to the subcontractor;

(h) The date(s) the work is performed by the subcontractor for the contractor falls within the Policy Effective and Policy Expiration dates listed on the Certificate of Liability Insurance; and,

(i) The Description of Operations identifies the name of the subcontractor and states that only the leased employees of the subcontractor are afforded workers’ compensation coverage.

(4) If a corporate officer of the subcontractor has elected to be exempt from the workers’ compensation coverage requirements of Chapter 440, F.S., the contractor shall obtain from the subcontractor a copy of the corporate officer’s Certificate of Election to Be Exempt issued by the Department. In lieu of a copy of the Certificate of Election to Be Exempt, a contractor may obtain a screen print from the Division of Workers’ Compensation, Exemptions Search database confirming that a Certificate of Election to Be Exempt is in effect for the corporate officer of the subcontractor. The Exemptions Search database can be accessed from the Division’s website at https://dwcdataportal.fldfs.com/Exemption.aspx. The Certificate of Election to Be Exempt shall include the following information and documentation in order to be considered evidence of a valid Certificate of Election to Be Exempt:

(a) The State Seal of Florida;

(b) “State of Florida, Department of Financial Services, Division of Workers’ Compensation, Certificate of Exemption from Florida Workers’ Compensation Law” is listed;

(c) The person named on the Certificate of Election to Be Exempt is designated as a corporate officer of the subcontractor;

(d) The date the work is performed by the corporate officer named on the Certificate of Election to Be Exempt falls within the Effective and Expiration dates listed on the Certificate of Election to Be Exempt;

(e) The corporate officer named on the Certificate of Election to Be Exempt must perform on behalf of the contractor work within the industry that is listed on the Certificate of Election to Be Exempt; and,

(f) A Certificate of Election to Be Exempt effective on or after January 1, 2023, must contain the following notice: “This certificate of election to be exempt is NOT a license issued by the Department of Business and Professional Regulation. To determine if the certificate holder is required to have a license to perform work or to verify the license of the certificate holder, go to www.myfloridalicense.com”.

(5) If a subcontractor employs a corporate officer that has been issued a Certificate of Election to Be Exempt and also employs non-exempt employees for whom the subcontractor is required to secure the payment of compensation, the contractor must obtain evidence of workers’ compensation insurance pursuant to subsection (2) or (3) of this rule, for such employees and further must obtain evidence of every valid Certificate of Election to Be Exempt pursuant to subsection (4) of this rule.

(6) If a contractor fails to obtain evidence of workers’ compensation insurance or evidence of a valid Certificate of Election to Be Exempt as required herein and the subcontractor has failed to secure the payment of compensation pursuant to Chapter 440, F.S., the contractor shall be liable for, and shall secure the payment of compensation for all the employees of the subcontractor pursuant to Section 440.10(1)(b), F.S., and if the contractor has failed to secure the payment of compensation pursuant to Chapter 440, F.S., the contractor will be issued a Stop-Work Order and a penalty will be assessed against the contractor pursuant to Section 440.107(7)(d)1., F.S. For penalty calculation purposes, the payroll for the contractor shall also include the payroll of all uninsured subcontractors and their employees. If the subcontractor is required to secure the payment of compensation and fails to secure the payment of compensation for its employees, the subcontractor will also be issued a Stop-Work Order and a penalty will be assessed against the subcontractor pursuant to Section 440.107(7)(d)1., F.S.

(7) If a contractor obtains all required evidence of workers’ compensation insurance or evidence of a valid Certificate of Election to Be Exempt as specified in this rule and the subcontractor fails to secure the payment of compensation pursuant to Chapter 440, F.S., the subcontractor will be issued a Stop-Work Order and a penalty will be assessed against the subcontractor pursuant to Section 440.107(7)(d)1., F.S., and the contractor will not be issued a Stop-Work Order unless it has failed to secure the payment of compensation for its employees other than the employees of the subcontractor.

(8) If the work being performed by the subcontractor for the contractor continues beyond the Policy Expiration date listed on the Certificate of Liability Insurance, the “Information Page”, the screen print from the Division of Workers’ Compensation, Proof of Coverage database, or the expiration date of the Certificate of Election to Be Exempt, the contractor shall obtain new evidence of workers’ compensation insurance as specified in subsection (2), (3), (4), or (5) herein.

(9) For the purposes of compliance with this rule, a subcontractor becomes a contractor when such subcontractor sublets any part or parts of his or her subcontract work to another subcontractor.

Rulemaking Authority 440.05, 440.107, 440.591 FS. Law Implemented 440.05, 440.10, 440.107, 440.38 FS. History–New 8-5-07, Amended 7-18-23.