Whether you’re eager to capitalize on Florida’s many coastlines by launching a floating yoga studio or want to give tourists a place to capture Insta-worthy material at your quirky mini-golf course, one of the first things you need to do when establishing a business is to acquire Florida business insurance.

Florida is the third most populous state in the U.S. and has the 4th largest economy, so it’s an ideal place to own a small business.1 And to help protect your business from potentially expensive mishaps, here’s what you need to know about business insurance in Florida.

What business insurance am I required to get in Florida?

Business insurance requirements vary by state, so if you’re setting up shop in the Sunshine State, it’s essential to know the specifics of business insurance in Florida.

Florida workers’ compensation insurance

As a business owner, the state of Florida requires you to purchase workers’ compensation coverage if you have four or more part-time or full-time employees.2

Workers’ comp can help protect your business from financial losses should an employee get injured while on the job or suffer a work-related illness. It can help cover the costs of:

  • Medical expenses
  • Death benefits
  • Lost wages
  • Permanent or temporary disability (total or partial)
  • Rehabilitation and retraining

If you’re unsure whether workers’ comp coverage is required for your Florida small business, check with Florida’s Bureau of Compliance.

Florida auto liability insurance

Those yoga paddle boards won’t get themselves to the water. Whether your vehicle is owned by your business or by you personally, any vehicle registered in Florida must be insured with personal injury protection and property damage liability.3 Florida is a no-fault state so this means your insurance will pay for covered injuries first regardless of who was at fault.

Personal injury protection (PIP) — A minimum PIP limit of $10,000 is required. PIP covers 80 percent of all necessary and reasonable medical expenses up to $10,000 resulting from a covered injury, 60% of lost wages and services up to $10,000 due to a covered injury and $5,000 for a death benefit. The $5,000 death benefit does not count against the PIP limit.

Property damage liability (PDL) — A minimum PDL limit of $10,000 is required. PDL covers damage to someone else’s property caused by whomever is driving your insured vehicle.

When considering the average cost of a new vehicle or even a short hospital stay, the above minimum limits seem low. Also, what about coverage for repairing or replacing your vehicle? Fortunately, there are other coverages available to help alleviate these concerns. We have included several additional coverages below that you should consider. Please note this is not an inclusive list of all available options so you should talk to you agent/broker to determine what options will best fit your needs:

Physical damage — Physical damage coverage pays to repair or replace a covered vehicle you own or lease when it is damaged due to a covered loss. There are two types of physical damage losses:

  • Collision damage — This typically applies when your vehicle collides with an object or another vehicle and sustains damage. However, depending on the circumstances of a loss, there are instances where a loss could fall under a different coverage in the policy. For example, if you hit a deer with your vehicle, this type of loss is not considered a collision damage loss but rather a comprehensive damage loss. However, if you swerved to avoid the deer and then hit a pole, your collision damage coverage would then apply.
  • Comprehensive damage — This is when your vehicle suffers damage from a non-collision source, such as fire, vandalism or hail.

Bodily Injury Liability — Bodily injury coverage pays in the event a covered driver is at fault for an accident where a third party incurs injury or damage. Adding this coverage helps to prevent you from having to pay out of pocket in the event of an at fault accident.

It’s important to know you’re not out of the woods by using your own vehicle. Your company could still be sued if you’re in an accident while driving a personal vehicle for business-related purposes. Factors like ownership, size and type of vehicle can help determine whether personal or commercial auto insurance is required. This is where a company’s non-owned automobile liability comes into play.

What other types of business insurance are recommended for Florida?

Just like your floating yoga clients can choose to focus on anything from better balance to building a base tan, you have many options regarding business insurance in Florida.

Florida general liability insurance

General liability insurance (GL) in Florida is like sunblock for your business. Just as wearing the appropriate level of SPF protects your skin, GL is one of the most effective ways to safeguard your business. Also called commercial general

liability insurance (CGL), it protects your business from the financial consequences resulting from third-party non-employee bodily injury or third-party property damage claims arising from your business operations. General liability insurance also provides coverage for claims alleging a personal injury or an advertising injury incident has occurred.

Without general liability insurance coverage, you could be in financial trouble in the event of an unfortunate accident involving a customer or other third party. After all, mini golf is all fun and games, but those kitschy obstacles and multicolored balls could also present a potential tripping hazard.

Florida professional liability insurance

If you provide professional services and one of your clients alleges those services led them to a financial loss, professional liability insurance can help. Say you expand your mini-golf empire into designing courses for others. What if the business becomes slow at one of your custom locations, and the owner blames your vision? The nerve!

Still, when a customer or client claims — rightly or wrongly — that a mistake in your work led them to suffer a financial loss, professional liability insurance will provide an investigation and defend the claim and pay for appropriate damages to resolve the matter where someone claims your advice led to their financial loss.

Inland marine insurance

Inland marine insurance, or business equipment protection as we call it, sounds like it was designed especially for business insurance in Florida, right? In reality, it provides coverage for your business equipment when such equipment is accidentally damaged, lost or stolen during transportation or storage. From expensive tools to pricey construction materials, it provides coverage to equipment you transport to a job site (sea-related or not).

Commercial property insurance

Commercial property insurance provides protection for your company’s building, if you own it, and the contents inside it from the risks of accidental physical loss or damage, including theft, vandalism and fire. A Business Owners Policy (BOP) also includes commercial property insurance. Many businesses elect to purchase a BOP because it bundles commercial property and general liability coverages into a single coverage form.

Types of Professions covered in Florida through Thimble

No matter what your business sells, creates or teaches, you’ll benefit from business insurance coverage in Florida. If a non-employee slips and falls due to a workplace hazard or you accidentally damage a client’s property while working in their home, the last thing you need is to pay out-of-pocket for damages.

Here are a few examples of professions that Thimble offers business insurance coverage for in Florida:

Type of Professions covered in Florida through Thimble

How much is business insurance in Florida?

So, what is the cost of business insurance in Florida? The cost of your small business insurance in Florida depends on factors like the level of risk involved in your business, your industry, and the amount of business you do.

Finally, factors such as your crew size, coverage amount, and the number of years you’ve been in business will be taken into account before determining how much your policy’s premium will be.

Another critical factor in determining your premium is your location. Large metro areas like Miami, Orlando and Tampa might have higher premiums on average than rural communities in the Panhandle or Central Florida.

Median Florida insurance costs

Coverage PeriodMedian Cost
By the hour$9.05
By the day$17.76
By the week$33.08
By the month$58.61

*Costs are subject to change

Top cities for businesses in Florida

If you’re deciding where in Florida to set up shop or plan to take your business mobile, here’s some inspo. The following are some of the top cities for businesses in Florida:

  • Fort Lauderdale
  • Fort Myers
  • Gainesville
  • Jacksonville
  • Miami
  • Naples
  • Orlando
  • Sarasota
  • St. Petersburg
  • Tampa
  • Tallahassee

Protect your bottom line with Florida business insurance

When perfecting paddleboard yoga poses or running the most eye-catching mini golf course in the South, your imagination is the limit. Don’t let your small business be held back by surprise expenses. Remember, when it comes to Florida business insurance, workers’ compensation and auto liability insurance are required in specific circumstances, and you may be required to carry additional insurance depending on your profession and licenses. Other coverages are recommended.

At Thimble, we’re here to help you find the right Florida business insurance coverage for fast-moving businesses like yours. Click “Get a quote,” answer a few questions, and get covered in minutes. You’ll receive a Certificate of Insurance (COI) in your inbox virtually in an instant, so you can get to work, fast.

Get covered and let your Florida business shine.

Source:

  1. Bureau of Economic Analysis. GDP by State. https://www.bea.gov/data/gdp/gdp-state; United States Census Bureau. State Population Totals and Components of Change: 2020-2023. https://www.census.gov/data/tables/time-series/demo/popest/2020s-state-total.html
  2. Florida Department of Financial Services. Workers’ Compensation Coverage Requirements. https://www.myfloridacfo.com/division/wc/employer/coverage-requirements
  3. Florida Department of Highway Safety and Motor Vehicles. Florida Insurance Requirements. https://www.flhsmv.gov/insurance/