By Adrian Middleton, Sword & Shield, PLLC · Updated Monday, October 19, 2026
What the section does
Subsection (1)(a) places the duty to secure compensation on every employer coming within Chapter 440. The rest of subsection (1) deals with the construction chain: when a contractor sublets any part of its work, the contractor is liable for compensation to the subcontractor's employees unless the subcontractor has secured it. That one sentence makes every uninsured sub's crew the contractor's employees for penalty purposes.
Subsection by subsection
| Subsection | What it says | Where it bites |
|---|---|---|
| (1)(a) | Every employer must secure compensation for its employees | The basic duty |
| (1)(b) | A contractor that sublets work is liable for the subcontractor's employees unless the sub has secured coverage; in that case the contractor is the statutory employer | The GC's order for the sub's crew |
| (1)(c) | The contractor must require each subcontractor to provide evidence of coverage, or a copy of each exemption certificate, and keep it | The missing certificate of insurance at the audit |
| (1)(d) | If the contractor pays compensation for a sub's employee, it may recover from the sub | Indemnity after the fact |
| (1)(e) | A sub's employee who has coverage through the sub is not the contractor's employee for benefit purposes | Who the sub's policy protects |
| (1)(f) | A subcontractor that misrepresents coverage or exemption status to a contractor is liable for a penalty not to exceed $5,000 per misrepresentation | The fake certificate |
| (1)(g) | An employer who insures Florida employees under a policy not issued or endorsed for Florida, to avoid Florida rates, commits a second-degree felony | The out-of-state policy |
Evidence the contractor must keep
Subsection (1)(c) is the rule the Division's Rule 69L-6.032 implements: for every subcontractor, the contractor must collect and keep a certificate of insurance for the sub's policy, or a copy of each exempt officer's certificate, or the sub's employee-leasing agreement. An exemption certificate for the sub's owner is not evidence of coverage for the sub's workers. Verify every certificate on the Division's proof-of-coverage search before the first check, and again before the certificate's expiration date. See verifying subcontractors.
Construction: the 1099 does not matter
Section 440.02(18)(c) makes every person paid to work in the construction industry an employee of the entity paying them unless they have their own policy or a valid exemption. Combined with section 440.10(1)(b), that means a 'subcontractor' who is one person with a truck is the contractor's employee, and a sub that is an LLC with two uninsured helpers makes those helpers the contractor's employees. Section 440.107(7)(f) adds $5,000 for each worker misrepresented as an independent contractor. See misclassification.
What the order covers
A contractor served for a sub's crew is also served for its own penalty period. The Department does not stop at the sub's weeks; it audits the contractor's whole lookback for every uninsured payment to anyone.
A sub's crew put your company on a stop-work order? We audit the chain before the Department does.
(850) 766-6825Pre-submission auditRead the official text of s. 440.10, Fla. Stat. This page explains the statute; it does not reproduce it. Quote the statute.
Questions
Am I liable if my subcontractor's workers' comp lapsed after I checked it?+
Section 440.10(1)(b) makes the contractor liable whenever the sub has not secured coverage, so yes, for the weeks after the lapse. Section 440.05(7) lets a contractor register its subs with the carrier to receive notice of cancellation or non-renewal, which is the practical protection.
Does an exempt sub protect me?+
Only for the exempt officer, only if the certificate is valid, and only if it names the company you pay. The sub's helpers are your employees for penalty purposes if the sub has no policy.
What is the penalty for a sub who lied about coverage?+
Section 440.10(1)(f) authorizes a penalty of up to $5,000 per misrepresentation against the sub, and the contractor can recover under (1)(d) any compensation it paid for the sub's employee.