By Adrian Middleton, Sword & Shield, PLLC · Updated Monday, October 19, 2026
Reasons for denial
Section 440.05(3) directs the Division to issue the certificate after receiving the notice, the fee and a favorable determination, unless the information is invalid. The grounds that produce an unfavorable determination:
| Reason | What it looks like | Fix |
|---|---|---|
| Not listed on Sunbiz | The officer or member is not on the entity's record, or the entity is inactive | File the amendment or annual report; reapply after it posts (s. 440.05(10)) |
| Ownership under 10% | LLC member with 5%; construction officer with 8% | Restructure ownership, or cover the person on a policy (s. 440.02(11), (18)(b)2) |
| Too many construction officers | A fourth officer, counting affiliated companies | Only three per group; the rest must be covered (s. 440.02(18)(b)2) |
| Information does not match | Name, date of birth or license number differ between the application, the license and Sunbiz | Correct the record and refile |
| Employees not covered | The applicant cannot certify coverage for the company's workers | Bind a policy or leasing agreement first (s. 440.05(3)) |
| Tutorial not completed | No certification of the Division's online tutorial | Complete it and refile |
| Affiliated delinquency | A related person or company owes a stop-work order penalty or a court-ordered debt | Pay or resolve the penalty, or sign and keep current on a payment agreement (s. 440.05(14)) |
Reasons for revocation
Section 440.05(12) makes every certificate subject to revocation if the named person no longer meets the requirements, and requires the Division to revoke at any time for noncompliance. Section 440.05(3) requires revocation when the information is invalid. In practice:
- The officer resigned, sold down below 10 percent, or was removed from Sunbiz.
- The company was administratively dissolved.
- The company stopped covering its employees after certifying that it did.
- The application contained false information. That is also a third-degree felony under section 440.05(4), and it is the kind of fact the Division's fraud referral under section 440.105 is built on.
- A stop-work order or penalty assessment became delinquent for the company or an affiliated person.
The affiliation trap
Section 440.05(14) is broader than most owners expect. 'Affiliated person' includes a spouse; anyone who owns 10 percent or more of the other company; a person who controls it; a person who bought substantially all of its assets; its officers or managers; and anyone who shares an officer, director, trustee, partner or joint venturer with it. An unpaid penalty on a company you closed in 2022 can block your exemption in a company you formed in 2026. The Department's successor-liability provision in section 440.107(7)(b) works the same way for the penalty itself.
What the denial is telling you
If a new exemption was denied for affiliated delinquency, the old penalty is still collectible with interest, costs and attorney's fees under section 440.107(8), and the Department has a lien. Resolving the old case is usually cheaper than operating without exemptions.
What to do
- 1
Read the determination for the stated reason.
It will name the subsection. Match it to the table above.
- 2
Fix the record before refiling.
Sunbiz changes post in days. Ownership changes need operating agreement or stock ledger amendments. Do not refile with the same data.
- 3
If the reason is a delinquent penalty, call us before paying.
Penalty assessments can be recalculated within 20 business days of the first calculation under Rule 69L-6.028, and older assessments may be negotiable through a payment agreement under Rule 69L-6.025. See contesting the order and the penalty.
- 4
If the reason is false information, do not file anything else.
A second filing with corrected information after a false one can look like an admission. Talk to counsel first.
Operating while denied
An officer whose exemption was denied or revoked is an employee. If the company has no policy, the company is an uninsured employer, and in construction that is a stop-work order on the first inspection (s. 440.107(7)(a)). Bind coverage for the non-exempt officer, or stop paying them until the certificate issues.
Denied, revoked, or blocked by an old penalty? We handle the penalty and the refiling together.
(850) 766-6825Free consultationQuestions
Can I appeal a Florida exemption denial?+
A denial is agency action subject to Chapter 120, Florida Statutes. In most cases the faster route is to correct the stated defect and refile, because the denial reasons are objective: the Sunbiz listing, the percentage, the officer count, the delinquency.
Will the Division tell my carrier the exemption was revoked?+
Section 440.05(3) requires the Division, on a carrier's written request, to electronically notify it of exemptions issued and revocations received for its policyholders. Carriers use this at audit.
Does a revoked exemption create a criminal case?+
Revocation itself does not. If the revocation was for false information, section 440.05(4) makes the false filing a third-degree felony, and the Division's fraud unit can refer it. Get counsel before responding to any inquiry about a revoked certificate.