69L-6.032: Contractor Requirements For Obtaining Evidence That Subcontractors Possess Workers' Compensation Insurance or Otherwise Comply with Chapter 440, Florida Statutes.
PURPOSE AND EFFECT: The purpose of the proposed rule is to set forth procedures whereby contractors may fulfill the requirements and obligations associated with obtaining evidence that subcontractors engaged by them possess workers compensation insurance or that corporate officers of the subcontractors have been issued a Certification of Election to be Exempt by the Department. The effect of the proposed rule is to promote contractor compliance with the obligations associated with obtaining evidence confirming that subcontractors so engaged possess workers compensation insurance or otherwise are in compliance with Chapter 440, Florida Statutes.
SUBJECT AREA TO BE ADDRESSED: Requirements and obligations of contractors to obtain evidence of workers' compensation insurance or that the subcontractor and its employees otherwise comply with Chapter 440, Florida Statutes.
SPECIFIC AUTHORITY: 440.05(10), 440.107(5), 440.107(9), 440.591 FS.
LAW IMPLEMENTED: 440.05(10), 440.10(1), 440.107(3), 440.107(7), 440.38(1) FS.
IF REQUESTED IN WRITING AND NOT DEEMED UNNECESSARY BY THE AGENCY HEAD, A RULE DEVELOPMENT WORKSHOP WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:
TIME AND DATE: Tuesday, December 5, 2006, 10:00 a.m.
PLACE: 104J Hartman Building, 2012 Capital Circle SE, Tallahassee, Florida
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Andrew Sabolic, (850)413-1600. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE DEVELOPMENT AND A COPY OF THE PRELIMINARY DRAFT, IF AVAILABLE, IS: Andrew Sabolic, Bureau Chief, Bureau of Compliance, Division of Workers Compensation, Department of Financial Services, 200 East Gaines Street, Tallahassee, Florida 32399-4228, (850)413-1600.
THE PRELIMINARY TEXT OF THE PROPOSED RULE DEVELOPMENT IS:
69L-6.032 Contractor Requirements for Obtaining Evidence That Subcontractors Possess Workers Compensation Insurance or Otherwise Comply With Chapter 440,
(1) In order for a contractor to satisfy its obligation to obtain evidence of workers compensation insurance or a Certification of Election to be Exempt from a subcontractor pursuant to Section 440.10(1)(c), F.S., a contractor shall obtain from the subcontractor and provide to the Department, when requested, the evidence specified in subsection (2), (3), or (4) herein. It is the contractors duty to verify all the evidence of workers compensation insurance, including all Certificates of Election to be Exempt obtained from the subcontractor, prior to the subcontractor commencing work.
(2) If a subcontractor is insured with a carrier, the evidence of workers compensation insurance from the subcontractor shall be a copy of page 1 of the subcontractors Florida Workers Compensation Application, as published by Acord, and a Certificate of Liability Insurance, as published by Acord, that corroborates the information contained in page 1 of the Florida Workers Compensation Application. If a workers compensation insurance policy has been issued to the subcontractor, the contractor may obtain a copy of the Information Page of the subcontractors workers compensation insurance policy as evidence of workers compensation insurance. 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:
(a) The producer section lists the producers 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 name of the subcontractor is listed as the insured;
(d) The proper policy number or binder number is provided for the Workers Compensation and Employers Liability Insurance;
(e) The dollar limits of coverage are listed for the Workers Compensation and Employers Liability Insurance;
(f) An authorized representative has signed the Certificate of Liability Insurance;
(g) The issue date of the Certificate of Liability Insurance precedes the date the subcontractor commenced work for the contractor; and
(h) 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 Chapter 468, F.S., the evidence of workers compensation insurance from a subcontractor shall be a Certificate of Liability Insurance, as published by Acord, 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. 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 producers 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 for the contractor;
(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 a copy of the corporate officers Certificate of Election to be Exempt issued by the Department from the subcontractor. 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
(b) State of
(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; and
(e) The corporate officer named on the Certificate of Election to be Exempt must perform on behalf of the contractor the type of work that is listed on the Certificate of Election to be Exempt.
(5) If a subcontractor employs a corporate officer that has been issued Certificate of Election to be Exempt and also employs non-exempt employees and the subcontractor is required to secure the payment of compensation for such employees, the contractor must obtain evidence of workers compensation insurance from the subcontractor pursuant to subsection (2) or (3) of this rule for such employees and obtain evidence of all valid Certificates of Election to be Exempt from the subcontractor 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 from a subcontractor as required herein, 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.
(a) If the contractor fails to secure the payment of compensation, 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.
(b) 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 from a subcontractor as specified in this rule and the subcontractor fails to secure the payment of compensation pursuant to Section 440.107, 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.
Specific Authority 440.05(10), 440.107(5), 440.107(9), 440.591 FS. Law Implemented 440.05(10), 440.10(1), 440.107(3), 440.107(7), 440.38(1) FS. HistoryNew_________.
