When must a Florida general contractor obtain workers' compensation insurance?
Correct Answer
D) When they have 1 or more employees
In Florida, general contractors must carry workers' compensation insurance when they have one or more employees. This requirement protects workers injured on the job and is mandatory regardless of project size or type.
Why This Is the Correct Answer
Florida Statute 440.02 requires all general contractors to carry workers' compensation insurance when they have one or more employees. This is one of the strictest requirements in the nation, with no minimum employee threshold. The law applies to all construction work regardless of project size, duration, or type. This mandatory coverage protects both employees and contractors from liability related to workplace injuries.
Why the Other Options Are Wrong
Option A: When they have 4 or more employees
This is incorrect because workers' compensation insurance is mandated by Florida state law, not by project owners. The requirement is automatic and universal for any general contractor with employees, regardless of what the project owner specifies.
Option B: When they have 3 or more employees
This is incorrect because Florida's requirement begins at 1 employee, not 4. The 4-employee threshold may apply in other states or for certain other business types, but not for Florida general contractors.
Option C: Only when specifically required by the project owner
This is incorrect because Florida's requirement kicks in at 1 employee, not 3. Some other states may have a 3-employee threshold, but Florida is more stringent.
Memory Technique
Think 'Florida = ONE and done' - as soon as you have ONE employee, workers' comp coverage must be done (obtained).
Reference Hint
Florida Statutes Chapter 440 - Workers' Compensation Law, specifically Section 440.02 regarding coverage requirements
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