As a general contractor in Florida, it’s important to take all the steps you can to protect your small business. One of the best ways to do this is by getting contractor insurance. Whether you’re a first-time contractor or have been in the industry for years, the stakes are high. You never know if you or an employee will suffer an injury at a potentially dangerous job site, or if you might make a mistake that damages a client’s property. With all that could go wrong, it’s critical to be insured. Not sure what you’ll need to get contractor insurance in Florida? We’ll explain.

What are the insurance requirements for contractors in Florida?

Contractors are required to have insurance within 30 days before receiving their license, according to the Florida Department of Business & Professional Regulation.1 Before you get your contractor license in Florida, you’ll need the following insurance policies:

  • Public liability insurance: This covers claims or lawsuits filed by members of the public, such as building visitors, delivery personnel or customers if they have an accident or suffer an injury while on the premises of your work site.
  • Property damage liability insurance: Helps pay for damage or harm to a third party’s physical property.
  • Workers’ compensation insurance: Protects you from paying out-of-pocket if an employee is injured or becomes ill on the job. It can also cover you if you work alone, so you can make up lost wages or pay for medical expenses associated with workplace injuries.

What are other types of insurance contractors need in Florida?

Though the state of Florida requires its contractors to have public liability insurance, property damage liability insurance, and workers’ compensation insurance, other insurance policies offer additional protection for your business. You might also consider:

  • Professional liability insurance: Even the most careful contractors can make mistakes. With this coverage, you can protect your business against claims that a mistake you made resulted in a financial loss for your clients.
  • Business Equipment Protection: You’ve invested in high-quality equipment to do your job and finish your contracting work on time. But you also bring your equipment between work sites, increasing the chance that it gets damaged. Business Equipment Protection covers you if your items are accidentally damaged or stolen.
  • Commercial property insurance: Covers your business location and the business contents within 100 feet of your scheduled property. Your Business Owners Policy (BOP) bundles commercial property insurance with your general liability insurance.

What are the COI requirements for Florida contractors?

Florida has strict laws surrounding insurance limits for contractors, as we’ll explain below. The best way to prove that you’ve obtained the necessary liability insurance is to provide a Certificate of Insurance (COI). This document is proof of a valid, active insurance policy and the types of coverage within it. As soon as you buy a Contractor Insurance policy through Thimble, we’ll immediately send you as many COIs as you request to your app and inbox.

How much does contractor insurance cost in Florida?

On average, contractors pay about $114 per month for general liability insurance in Florida via Thimble. Your premium costs can fluctuate based on multiple factors, including your ZIP code, whether you hire subcontractors, your average project size, and whether you work on building interiors or exteriors.

Contractor licensing requirements in Florida

Proof of insurance isn’t the only documentation you’ll need to start your contracting business. In Florida, you must also meet multiple state licensing requirements:2

  • Proof of experience: Florida requires at least three years of management experience for electrical, alarm, and specialty contracting within the past six years. Alternately, you must have four years of experience as a foreman, supervisor or a contractor in your trade in the past eight years when applying for your contracting license. Self-employed applicants must provide three letters from building officials, local licensing agencies and licensed contractors to prove your experience.
  • Proof of insurance: Florida requires contractors to obtain public liability insurance with limits of $100,000 per person, $300,000 per occurrence and property damage with a limit of $500,000. Contractors could also provide proof of a combined insurance policy with a limit of $800,000.3
  • Pass exam: Contractors in Florida must obtain a passing grade on their certification exam, and your exam scores cannot be more than two years old.
  • Register with local and state agencies: In Florida, contractors must provide their business name registered with the Florida Division of Corporations. And if you already hold a license, you must provide the state with the license number.

In Thimble, you can trust

Choosing the right insurance for your business can seem overwhelming at first, but it’s crucial to protect yourself and your employees from the financial impact of accidents that happen on the job. Before you choose your coverage, remember:

  • Florida requires its contractors to carry workers’ compensation, public liability insurance, and property damage liability insurance. You’ll need to provide a COI when applying for licensing.
  • Florida contractors can also supplement their coverage with professional liability insurance, Business Equipment Protection, and commercial property insurance.
  • In addition to providing proof of insurance, you’ll need to pass an exam, submit letters proving your experience, and register your business name with the state before you receive a license.

Thimble offers Contractor Insurance for trades such as carpentry, drywall installation, electrical work, locksmithing and more! Once you’re ready to choose your Contractor Insurance, click “Get a Quote,” answer some questions about your business, and click to purchase. We’ll send your COI right away to your app and inbox. Get your insurance and your hard hat because now’s the time to build!

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Sources:

  1. Florida Department of Business & Professional Regulation. CERTIFIED GENERAL CONTRACTOR QUALIFYING AN ADDITIONAL BUSINESS AS A BUSINESS. 
  2. State of Florida Department of Business and Professional Regulation. State of Florida Department of Business and Professional Regulation Electrical Contractors’ Licensing Board Application for Initial Certification by Examination. 
  3. State of Florida Department of Business and Professional Regulation. State of Florida Department of Business and Professional Regulation Electrical Contractors’ Licensing Board Application for Initial Certification by Examination.