In Florida, workers' compensation insurance is required for construction companies when they have how many employees?
Correct Answer
D) 1 or more employees
Florida requires workers' compensation insurance for construction companies with one or more employees. Construction is considered a high-risk industry with stricter requirements than other business types.
Why This Is the Correct Answer
Florida Statute 440.02 requires workers' compensation insurance for construction companies with one or more employees. Construction is classified as a high-risk industry, so Florida has stricter requirements compared to other business types. This means that as soon as a construction company hires even one employee, they must carry workers' compensation coverage. The law recognizes the inherent dangers in construction work and provides immediate protection for workers.
Why the Other Options Are Wrong
Option B: 5 or more employees
This threshold is too high and does not reflect Florida's requirements for construction companies. Some states may use this threshold for certain industries, but Florida requires coverage starting with the first employee in construction.
Option C: 4 or more employees
This is the general threshold for most non-construction businesses in Florida, but construction companies are held to a higher standard. The 4-employee threshold does not apply to the construction industry.
Memory Technique
Think 'Construction = 1 and DONE' - as soon as you hire one employee in construction, you're done waiting and must get workers' comp coverage immediately.
Reference Hint
Florida Statutes Chapter 440 - Workers' Compensation Law, specifically Section 440.02 regarding coverage requirements
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