Building Code Administrators and Inspectors Florida Principle and Practice Licensure Practice Exam

What happens to a sole proprietor, partner, or officer of a corporation in the construction industry who chooses to exempt themselves from Workers' Compensation provisions?

1. May be limited in the amount of benefits available

2. May not recover benefits under this chapter

3. Shall be required to secure private hospitalization plans

4. Shall not be permitted to work at a construction site

The correct answer is: May not recover benefits under this chapter

When a sole proprietor, partner, or officer of a corporation in the construction industry opts to exempt themselves from Workers' Compensation provisions, they effectively relinquish their right to recover benefits under those provisions. This decision stems from the understanding that Workers' Compensation is designed to provide coverage for injured workers regardless of fault, and opting out means that they are choosing not to participate in this safety net. Consequently, if they incur an injury while working, they cannot seek compensation through the Workers' Compensation system. This can lead to significant financial risk in the event of a workplace injury, as they must cover their medical expenses and lost wages without the protections that Workers' Compensation would typically provide. The other potential consequences, such as limitations on the amount of benefits or requirements for private hospitalization plans, do not apply to someone choosing to exempt themselves. Working at a construction site is also not inherently restricted simply because of the exemption from Workers' Compensation. The key point is the loss of recovery rights under that system, which is foundational to understanding the implications of this choice.