Attached is a copy of the letter we sent you in May regarding “Other States” Coverage. It mentions the importance of telling us whenever you have work in another state not currently listed on your policy so that we can properly add that state.
It was recently announced that Florida Statute has made it a second degree felony for failure to comply, carrying the possibility of fines and imprisonment. Following the two devastating hurricane seasons which resulted in a significant influx of out- of-state contractors Florida has made it mandatory that all contractors working in the state have coverage provided by a carrier licensed in Florida, with Florida specifically listed in section 3.A. of the policy Information Page. Having Florida listed in 3.C., the Other States section, does not satisfy the requirement. In addition to assuring proper coverage, Florida wants to make sure contractors pay the appropriate Florida rates, and that Florida collects its portion of the premium tax.
Similarly, any contractor who subcontracts work in Florida must require proof of Florida Workers’ Compensation coverage, provided by a Florida licensed carrier, with Florida listed in item 3.A. of the Information Page. Florida statute regarding the definition of an independent contractor is also very strict, and carries a penalty of up to $5,000 for every employee found not to be an independent contractor.
Florida laws are quite strict, and there may be additional states that have similar penalties, so please be sure to tell us of any state not listed in item 3.A. of your policy, in which you now have operations, or in which you begin operations at any time during the policy term, so we can take the steps necessary to provide the
proper coverage. Require similar proof of coverage from your subcontractors as well.
Very truly yours,
DeSanctis Insurance Agency, Inc.
