You run the business, do the work and send the invoices. There is no crew on payroll. Then a general contractor asks for workers’ compensation documentation before you can start.
An owner-only LLC in Florida should evaluate workers’ comp based on its actual work, the owner’s status, any valid exemption and the contract—not simply whether it issues W-2s. Construction businesses have different rules from many other small businesses. A coverage decision also needs to address what happens if the working owner is injured.
This guide helps you organize that decision before requesting a quote or submitting an exemption to a client.
Why having no employees does not answer the question
Florida’s Division of Workers’ Compensation states that construction employers with one or more employees, including qualifying business owners, must have coverage. Entity structure and industry affect the analysis. The state applies a different threshold to non-construction businesses. Review the Florida coverage requirements rather than applying a general small-business rule to a construction trade.
Start with a clear description of your operations. Installing cabinets, performing electrical work and providing office consulting are different activities even when all three owners describe themselves as self-employed. Ask a specialist to review the work you actually perform, including occasional jobs outside your usual trade.
Keep three questions separate: what Florida requires, what your client requires and what protection you want for yourself. An answer to one does not automatically resolve the other two.
An exemption and an insurance policy serve different purposes
An exemption is not workers’ compensation insurance. Florida explains that exemptions apply to eligible corporate officers or LLC members personally, rather than to the business. An exempt owner is excluded from employee status under the exemption and may not recover workers’ compensation benefits. See the Division’s exemption guidance.
Before choosing that route, ask what your injury response would look like. Who would handle the work? Which policy or financial resource would you expect to address medical bills or lost income? Have the relevant insurer explain its terms; do not assume another product is an equivalent substitute.
Your general contractor may also have its own documentation requirements. Send the written requirement to your insurance advisor and ask the client to confirm what it will accept. Avoid treating a previous client’s acceptance as approval for every future project.
Compare your options using the same questions
| Option to discuss | Main purpose | Questions to resolve |
| Eligible owner exemption | Excludes the qualifying individual under Florida’s exemption framework | Am I eligible? Is it active? What protection am I giving up? Will this client accept it? |
| Workers’ comp policy with the owner included | Addresses eligible work-related injury exposure under policy terms | Is the working owner actually included? Are the operations and Florida work correctly described? |
| Qualifying owner-only program | Offers a program structure for eligible owners without W-2 employees | How is coverage provided? What documents are issued? What changes if I hire? |
These are discussion paths, not interchangeable products. Request the documents and explanations needed to understand the structure being offered.
What to ask about an owner-only program
Lite Speed’s Owner-Only Workers’ Compensation Program provides an eligibility review for owners without W-2 employees. Its current offering describes participation without traditional payroll processing for qualifying owners. Availability depends on the business, operations and underwriting requirements.
Before enrolling, ask the specialist to confirm:
- The legal entity and working individual included in the arrangement.
- The covered operations and any work that is outside the program’s scope.
- How coverage is documented and how a claim is reported.
- The applicable payment, reporting and renewal responsibilities.
- Whether the arrangement satisfies the written requirement for your next project.
- What notice and changes are required before hiring or changing operations.
Ask for explanations in writing when a feature affects your decision. A simpler administrative structure still needs to match the work you perform.
A practical example before accepting a job
Imagine a single-member remodeling LLC with no W-2 employees. The owner performs the work and occasionally hires another business for a specific task. A new project asks for evidence of workers’ comp.
The useful next step is to assemble the owner’s status, a description of remodeling activities, existing insurance documents and the client’s insurance exhibit. The advisor can then review the owner’s options, the subcontracting exposure and the evidence the client needs.
This is an illustrative decision process, not a coverage determination. Calling the owner self-employed or paying another business by invoice does not complete the review.
Prepare these details for an accurate review
Bring your legal business name, entity structure, ownership information, trade, work locations and expected activity. Include any current policy or exemption, the requested start date and the full contract insurance requirements.
Describe how you use helpers and subcontractors. If the business is about to grow, say so now. An arrangement selected for one working owner should be revisited before adding people or materially changing the work.
Also explain the outcome you need: owner injury protection, acceptable project documentation, a different administrative arrangement or a combination. That makes the consultation more useful than asking only for the lowest price.
Choose coverage around how your business operates
Your insurance should reflect the owner doing the work today and the business you expect to run next. Lite Speed helps Florida contractors understand their exposure, compare the available structure and identify documentation questions before they delay a project.
Check your owner-only program eligibility. Have your trade, entity details and contract requirement ready. A specialist can review the next steps; eligibility and coverage remain subject to program and underwriting requirements.
Frequently asked questions
It depends on the work, ownership status and applicable exemption. Florida construction rules can include working owners in the coverage analysis. Have those facts reviewed rather than relying on the absence of W-2 employees.
An exemption is not an injury policy. Florida states that an exempt officer or member may not recover workers’ compensation benefits under that exemption. Consider that consequence before choosing the route.
Qualifying owners may have access to Lite Speed’s owner-only program. A specialist must confirm eligibility, the coverage structure and the documentation available for your operations.
Do not assume so. Entity structure and construction versus non-construction work matter. Describe your business accurately and have the applicable requirements reviewed.
Contact the program or insurance specialist before the person starts. Ask how the new worker will be included, what reporting is required and whether the current arrangement must change.