To offer contractor services in Florida, possessing a valid general contractor's license is fundamental. In this state, there are two critical categories for contractor licenses; registered or certified. It is integral for you to have an updated license to keep away from penalties or loss of your rights.
Having a Florida contractor insurance coverage is also integral and will cushion your firm from common liabilities. In this article, we discuss common Florida commercial and Florida residential contractor insurance requirements. We will also talk about how policies work and their coverage limits.
In Florida, it is crucial to have specific policies to shelter your employees, the general public, and business. The exact insurance requirements vary depending on the scope of your work. There are specific policy limits that are set by the Florida licensing board as part of Florida general contractor insurance requirements, and they include:
General and building contractors must have property damage of $50,000 and public liability of $300,000
For Florida residential contractor insurance requirements and others, a $25,000 property damage and $100,000 and public liability coverage are mandatory
The minimum coverage limit for workers' compensation insurance in Florida is typically determined by the number of employees and the nature of the work performed. The minimum coverage limit could differ from $100,000 to $500,000 per occurrence
It’s important to follow the Florida contractor insurance requirements stated above. Compliance is a must for getting a license, conducting business operations, or increasing the chances of finding big projects.
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $2,000,000 | $1,000,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $2,000,000 | $1,000,000/$2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $2,000,000 | $1,000,000 | $1,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $2,000,000 | $1,000,000 | $1,000,000 |
| Tenant’s legal liability coverage limit | $300,000/$1,000,000 | $300,000 | $100,000 | $100,000 | $1,000,000 |
| Waiver of subrogation included? | Yes | No | Included | Can be included | No |
| Hired/non-owned auto liability coverage included? | Yes | No | No | Can be included | Can be included |
| Equipment breakdown floater included? | No | Yes | Yes | Can be included | Can be included |
| Can you get a certificate of insurance online? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Deductible | $0 | $0 | $0 | $0 | $0 |
General liability is a crucial policy for Florida contractors, as it covers common liabilities that may arise while conducting your business operations. It will shelter your business from financial losses linked to third-party claims of personal injury, bodily injury, or property damage. General liability insurance Florida contractors primarily covers judgment, defense, and settlement costs in the event of accidents involving third parties.
A subcontractor, client, or passerby sustains physical harm from your work.
You or your employees damage someone’s property while doing your work.
Claims of slander, libel, or defamation against your business
If your completed work causes bodily harm or property damage after finishing the project
Umbrella liability insurance–This policy supplements the standard general liability insurance for contractors in Florida. It mainly offers extra protection against major claims.
Pollution liability insurance–If you work with hazardous materials, you need this add-on to cover claims that arise from environmental damage or pollution caused directly or indirectly by your work
If your business is accused of causing bodily injury or property damage to passersby, customers, or subcontractors, you must settle all the related damages. Your insurance will offer you a sufficient amount to cover such claims. This Florida contractor liability insurance provides a $1 million-$2 million per occurrence and aggregate limit.
| CoverWallet | NEXT | Thimble (Best) | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $1,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $2,000,000 |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Waiver of subrogation included? | Yes | No | Yes | Can be included | No |
| HIPAA coverage included? | No | No | No | No | No |
| Sexual misconduct coverage included? | No | No | No | No | Can be included |
| License defense coverage included? | No | No | No | No | Can be included |
| Deductible | $500 | $500 | $500 | $50/$10,000 | $500 |
If your business provides professional services, this type of insurance is fundamental. It protects you from financial losses associated with claims of omissions, errors, and negligence. Although you are a very competent contractor, mistakes can happen, which may lead to your clients suffering severe financial repercussions. Instead of using your business finances to settle the associated claims, the insurance provider chips in and covers all costs.
Your business can be accused of offering substandard professional services that cause financial harm to third parties or clients
You can make a mistake while offering your professional services leading to damages and financial losses
You can breach a contractor, and your actions result in your clients suffering financial losses
Abuse and molestation coverage–This is a crucial add-on that shelters your business against claims related to allegations of molestation or abuse that you or your employees may or may not have committed
The coverage limit for your business depends entirely on the individual circumstances of the claims and the size of your business. You can get coverage between $500,000 to $1 million under this policy included in Florida roofing contractor insurance and other related programs.
Get all the best quotes from leading providers in a click of a button!
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Building coverage limit (minimum) | $50,000 | $260,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Contents coverage limit (minimum) | $50,000 | $22,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Outdoor signs | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Accounts receivable | Excluded | Excluded | $5,000/10,000 | Included | Excluded |
| Money and securities | Excluded | $2,500 | $1,000 | Included | Excluded |
| Lock and keys | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Business interruption floater | Excluded | Included | Included | Included | Excluded |
| Equipment breakdown floater | Excluded | Included | Excluded | Excluded | Excluded |
| Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 | Included | Excluded |
Commercial property insurance helps to safeguard your business's physical assets, such as equipment, buildings, or inventory, from any unexpected accidents. The perils covered can be vandalism, theft, storms, or fire. Regarding coverage of this policy, an insurance carrier can offer replacement cost coverage or the actual cash value coverage depending on your needs.
Any damage caused by fire on your equipment, inventory, or buildings
Theft or vandalism of your property.
Natural disaster damage, such as that from hurricanes.
Accidental damage on your property due to falling objects and other covered perils
Inland marine coverage–This protects your movable property or equipment that is used off-site or frequently transported
Builder’s risk coverage–This add-on will cover property damage or loss during a renovation or construction project. It covers supplies, materials, and the building being renovated
The coverage limit for your physical assets will depend on the replacement costs. You should ensure you have enough money to repair or rebuild your buildings in the event of covered events. Depending on the nature of the damages, insurance companies may offer you between $10,000 and $1,000,000 in compensation.
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Building coverage limit (minimum) | $50,000 | $260,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Contents coverage limit (minimum) | $50,000 | $22,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Outdoor signs | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Accounts receivable | Excluded | Excluded | $5,000/10,000 | Included | Excluded |
| Money and securities | Excluded | $2,500 | $1,000 | Included | Excluded |
Business owner's policy is ideal for small businesses with relatively low risks. This comprehensive insurance is excellent for small contractors who want access to unique benefits and cost-budget-friendly policies. The policy usually contains essential policies such as business interruption, property, and general liability insurance.
Damage to your business property due to theft, vandalism, or other natural disasters.
Bodily injury to any person that visits your business premises
Claims of defamation or slander
If the products you sell cause either property damage or bodily injury
Employment practices liability insurance–This add-on will cover all claims related to your employment practices, such as harassment or discrimination
Environmental liability insurance–If your business is involved in projects that may cause environmental risks, you can include this add-on. It offers coverage for clean-up costs and damages related to pollution accidents
The limit for your BOP depends on the covered risks and specific agreement with your insurer. But generally, you can get coverage of $1 million to $2 million for general liability insurance. For commercial property insurance, $10,000 to $500,000 is the usual limit.
| NEXT | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|
| Aggregate limit | $3,000/$10,000 | $2,500/$5,000 | $15,000/$25,000 | $5,000-$10,000 |
| Covers hired and borrowed equipment? | $3,000/$10,000 | $2,500/$5,000 | No | Yes |
| Miscellaneous equipment also covered? | $5,000/$10,000 | No | Yes | Yes |
| Offered as an endorsement to general liability insurance? | Yes | Yes | Yes | Yes |
| Deductible | $500 | $500 | $0 | $0 |
Tools and equipment insurance shields your essential tools and equipment. It covers losses and damages on these assets. You need to check the specific terms of your policy as some may not cover in-transit or off-site stored tools and equipment. Additionally, daily wear and tear are not covered under this insurance policy.
Theft of your tools and equipment on the job site or storage facility
Accidental damage, such as your tools being dropped during transportation.
Fire and explosion that leads to damage to your tools
Natural disasters leading to the destruction or damage of your tools and equipment
Replacement cost coverage–This add-on ensures that in the event of an accident, your insurer will reimburse you the full replacement costs, and you will be able to acquire new items of the same quality and kind
You can get a coverage limit of $10,000 to $50,000. But the actual amount depends on your insurance company's terms and the covered items’ value.
As a contractor in Florida, automobiles come in handy in your operations. You will require vehicles to transport construction materials or deliver goods to your customers. But accidents involving vehicles can lead to bodily harm to the passengers or driver. They can also cause property damage. Thus it would be best to have commercial auto insurance that shields all parties in your vehicle and reimburses the costs of repairing your car after an unexpected accident.
If your commercial vehicle is damaged after a collision or accident, it will pay for repair costs
Your vehicle may cause damage to a third party's properties, such as fences or buildings
If your vehicle is vandalized or stolen, it will cover the costs of replacing and repairing your car
Comprehensive coverage–Covers all non-collision events such as vandalism, theft, or natural disasters
Collision coverage–Will pay for the repair damages of your commercial vehicle if it is hit by another car or object
Medical payments coverage–Pays for all the hospital bills of the passengers or driver if they sustain injuries after an accident
Liability coverage–Covers property damage or bodily injury of third parties if your commercial vehicle causes an accident
Uninsured motorist coverage–If you get into an accident with a driver without insurance or doesn’t have enough coverage, it will help settle all the related damages
Towing and roadside assistance–If your vehicle breaks down on the road, this add-on will cover towing costs or any other roadside assistance needed
Rental reimbursement–Will cover the costs of renting a vehicle if your commercial vehicle is damaged during an accident and needs repair work
The coverage limits for this policy is $50,000 to $500,000. An insurer will first gauge the nature of the accident, evaluate your business's losses, and develop an appropriate coverage amount.
Excess liability is included as an add-on to your Florida contractor liability insurance. This policy helps to extend the limits of your standard policies. If you get huge claims requiring a hefty amount of compensation, this insurance will chip in and cover the excess amount.
Slips or falls and damages caused by faulty workmanship.
Damage to a client’s assets caused by your business operations.
Claims of defamation or slander
The coverage limit is determined depending on the needs of your business. Excess liability insurance limits usually range from $1 million to $10 million.
In the contracting business, many accidents can occur, such as your employees being hurt by heavy machinery or sustaining back injuries due to lifting heavy objects. In Florida, all contractors must have this policy. You can be penalized and liable if authorities find out that you don’t have workers comp insurance.
Strains and sprains that your employees suffer in the workplace
Respiratory diseases due to exposure to building chemicals
Repetitive strain injuries on your employees
Occupational accident coverage–This add-on primarily supplements your primary insurance policy. It offers coverage for parties not covered by the standard workers' compensation insurance
Voluntary compensation endorsement–This supplement is essential for employees who are not required by law to carry workers' compensation insurance
Stop-gap coverage–If you work in different states, this coverage will shelter your employees in areas where your worker's compensation is not applicable
| Cost per Month | Cost per Year | Deductible | |
|---|---|---|---|
| General liability insurance | $30 | $360 | $0-$500 |
| Professional liability insurance | $36 | $432 | $1,000-$2,000 |
| Commercial property insurance | $42 | $504 | $1,000-$2,000 |
| Business owner's policy | $67 | $804 | $1,500 |
| Tools and equipment insurance | $33 | $396 | $500-$1,000 |
| Commercial auto insurance | $45 | $540 | $500-$1,000 |
| Workers compensation insurance | $85 | $1,020 | $2,500-$5,000 |
| Excess liability insurance | $39 | $468 | $500-$1,000 |
Florida contractor insurance is $30 per month or $360 per year for a $1 million general liability policy. Factors that affect premiums are claims history, business history, policy limits, deductibles, and number of employees. Here’s a table showing the cost of a $1 million general liability policy from the best companies:
| Cost per Month | Cost per Year | Best for | |
|---|---|---|---|
| NEXT | $16 | $192 | Best overall; Fastest general liability insurance |
| CoverWallet | $18 | $216 | Comparing contractor insurance quotes online |
| The Hartford | $20 | $240 | Florida contractors who want to work with an established insurance provider |
| Tivly | $23 | $276 | Comparing contractor insurance quotes over the phone |
| Thimble | $25 | $300 | Contractors looking for on-demand coverage |
| Hiscox | $27 | $324 | Contractors with specialized coverage needs |
Get all the best quotes from leading providers in a click of a button!
You must be careful when selecting Florida contractor's insurance; the following companies offer the best deals and premiums for small and large businesses. Here is a review of their pros, cons, and average cost for a $1 million general liability policy:
Best overall
Issues an online proof of insurance instantly
Fastest general liability insurance
Great customer service and reputation
Excellent rates
Outstanding value for money
Get a 10% discount if you buy two or more policies
Couldn’t find any
NEXT was established to offer small businesses relief regarding getting adequate insurance coverage. This company simplifies the insurance application process and ensures straightforward claims processing. For your contractor business, you can get BOP, workers' compensation, general liability, tools, and equipment insurance, among others.
Best for: Best overall; Fastest general liability insurance
Average cost: $16 per month
Our rating: 10/10
You can compare coverage options from several providers
Their prices are pretty friendly for small contractors
You can use their comparison tool to gauge what each provider is offering
They don't have direct control of their insurance policies, as they are a brokerage firm
CoverWallet is an insurance broker that stands out due to its ability to connect clients to various providers. This brokerage firm lets you choose affordable insurance premiums from different insurers. For your contractor business, you purchase multiple comprehensive policies at affordable rates.
Best for: Comparing contractor insurance quotes online
Average cost: $18 per month
Our rating: 10/10
Their process of settling claims is fast
Offers expertise advice to clients or businesses looking for coverage
They respond to customers' complaints faster
Limited add-ons to general liability insurance
The Hartford is an established insurer that offers contractors customizable coverage. Their experience spans over 100 years which promises you that you can get expert advice. You don't have to worry about the settlement of claims; this company has the financial capabilities to cover even the worst catastrophes.
Best for: Florida contractors who want to work with an established insurance provider
Average cost: $20 per month
Our rating: 10/10
They offer businesses competitive pricing
You can get flexible coverage for your business
They have partnered with many insurance carriers to offer you the best deals.
Some policies may be limited to particular states
Tivly is an excellent insurance marketplace where you interact with multiple insurance providers. With them, you have diversified options on the ideal coverage for your business. You can get some of the most competitive pricing here. Call now to compare quotes over the phone.
Best for: Comparing contractor insurance quotes over the phone
Average cost: $23 per month
Our rating: 9/10
Offers on-demand coverage for contractors
You can get adequate coverage for a specific project
It is possible to customize your policy to suit your needs
They mainly specialize in short-term policies and might be better for short-term coverage.
Thimble offers insurance coverage for businesses that require insurance for specific projects. They provide sufficient coverage if you want to start a project that will take days or hours. Their costs are also very friendly for small businesses.
Best for: Contractors looking for on-demand coverage
Average cost: $25 per month
Our rating: 9/10
Offers special discounts and deals on worker's compensation insurance
Their financial stability is unquestionable
Can cater even to businesses with special insurance needs
You can purchase Florida roofing contractor insurance from this company
Doesn’t offer coverage in Alaska
Hiscox is the best company if you require specialized coverage for your business. This company has a rich history of underwriting policies for businesses. Options for getting insured include general liability, commercial property, BOP, and workers compensation insurance. Hiscox can also hook you up with partners in case you need policies that it doesn’t underwrite in-house.
Best for: Contractors with specialized coverage needs
Average cost: $27 per month
Our rating: 9/10
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
It really can't get any better than this... wow
Not all those who wander are lost.
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