Florida Contractor Insurance: Frequently Asked Questions

Most Florida contractors carry five lines: (1) general liability — required by almost every GC, venue, and municipality; (2) workers compensation — required by Florida law at 1+ employee in construction (4+ in non-construction); (3) commercial auto — required for vehicles titled to the business or used primarily for work; (4) inland marine / contractors equipment — protects tools, equipment, and materials on the job site or in transit; (5) commercial umbrella — extra liability limits above GL and auto, often required on commercial or government contracts.

Contractor general liability (GL) covers third-party bodily injury and property damage caused by your operations — for example, a customer trips over your extension cord, or a falling tool damages a finished floor. It also covers products and completed operations (damage from work after the job is done), plus personal/advertising injury. GL does not cover the work itself (faulty workmanship), employee injuries (workers comp), or vehicle accidents (commercial auto).

Completed operations is a sub-part of general liability that pays for bodily injury or property damage arising from your finished work — e.g., a deck you installed collapses six months later. GCs and property owners require it because most construction defects surface after the project closes out. Make sure the policy includes products-completed operations aggregate limits, and that any additional insured endorsement uses CG 20 37 (which covers completed ops) in addition to CG 20 10 (ongoing ops).

GL covers physical injury and property damage. Professional liability / errors & omissions covers financial loss from professional advice, design, or judgment — for example, a design-build contractor whose specifications cause a costly rework. If you perform any design, consulting, project management, or engineering scope, you likely need E&O in addition to GL. Pure trade contractors who only install per spec usually do not.

Inland marine is a property line that covers movable business property — tools, equipment, and materials — wherever they go: in your shop, on the job site, in transit in your truck, or temporarily stored at a third-party location. Policies are typically written either as scheduled (each item listed with a value) or blanket (one limit covers all unscheduled small tools). Most contractor inland marine policies include theft from a locked vehicle, fire, and accidental damage.

In Florida construction, yes — at one or more employees, including yourself if you are not validly exempted. Sole-proprietor and corporate-officer exemptions exist (see below) but you must file them with the state; they are not automatic. Even with no employees, most GCs and many venues require you to either carry workers comp or show a valid Florida exemption certificate before working on their site.

Yes. Under Florida statute, an uninsured subcontractor working under you becomes your employee for workers comp purposes — their injury becomes your liability. GCs are required to verify every sub has either active workers comp coverage or a valid Florida exemption on file before letting them work. Failing to verify subcontractor coverage is one of the most common sources of uncovered workers comp claims.

Yes, with limits. Florida allows up to three corporate officers of a construction-industry corporation to file for workers comp exemption, provided each owns at least 10% of the corporation. LLC members must also own at least 10%. Sole proprietors and partners in construction are not eligible for exemption — only employees of a corporation or LLC are. Exemptions are filed with the Florida Division of Workers Compensation and must be renewed every two years.

The biggest drivers: (1) annual revenue/receipts, (2) annual payroll (drives WC and a portion of GL), (3) trade classification — roofing and structural trades cost more than painting or finish work, (4) percentage of subcontracted work, (5) loss history over the last 3–5 years, (6) years in business, (7) coverage limits and deductibles, (8) state and territory, and (9) types of projects (residential vs commercial vs new construction vs remodel).

Common causes: an audit found higher actual revenue or payroll than estimated; a claim posted during the policy term; the carrier filed a rate increase with the state; your trade classification or experience modification factor changed; reinsurance costs increased (a major driver of Florida property and liability rates 2023–2026); or you added scope, locations, or higher contract values. Ask your agent for the renewal letter from the carrier — it will state which factors moved.

Practical levers: keep an accurate revenue and payroll forecast so you are not over-classified; verify every subcontractor has active coverage so their payroll is excluded from your audit; maintain a clean 3-year loss history; implement a written safety program (most carriers offer credits); shop the policy at renewal — Florida carrier appetite for construction shifts year to year; increase deductibles where cash flow allows; and bundle GL, WC, and auto with one carrier where eligible.

A COI is a one-page summary of your in-force policy — limits, dates, policy numbers, named insured, and the certificate holder. It is proof coverage exists. At First Commercial most COIs issue within the same business day; additional insured endorsements typically issue within 24 hours.

Additional insured is a carrier-issued endorsement that extends certain coverage rights from your policy to a named third party — usually a GC, property owner, or venue. It lets that party use your policy to defend and indemnify themselves against claims arising from your operations. Listing them only as certificate holder on the COI does not do this; an endorsement (commonly CG 20 10 for ongoing ops and CG 20 37 for completed ops) must be issued.

Florida construction-industry standard: every subcontractor carries their own GL and either workers comp or a valid Florida exemption. You collect a COI from each before they start work, ideally naming you as additional insured. You generally cannot cover a sub under your policy — and even if a carrier allowed it, doing so exposes your loss history to their claims. Treating subs as covered "under your umbrella" is one of the most common causes of denied claims.

Typical commercial / public bid requirements: GL with $1M per-occurrence and $2M aggregate (often $2M/$4M on larger jobs), workers compensation at statutory limits with $500K–$1M employers liability, commercial auto at $1M combined single limit, and a $1M–$5M umbrella. Additional insured (ongoing + completed ops), primary and non-contributory wording, and waiver of subrogation are commonly required. Public projects often add a performance and payment bond requirement separate from insurance.

Usually no. If the vehicle is titled to the business, used primarily for business (hauling tools, materials, crews), or carries a commercial weight rating or DOT number, personal auto carriers typically deny the claim. A commercial auto policy is required, with the correct radius and use class. Mixing personal and business use on a personal policy is one of the most common sources of denied vehicle claims for contractors.

The sub's GL policy responds first to claims arising from their work, especially if they listed you as additional insured. Your GL usually responds on a primary and non-contributory basis only if your contract requires it and the sub is uninsured. If the sub has no coverage and no exemption, you are generally on the hook — both for the property damage and for any employee injury under workers comp. This is why verifying sub COIs every renewal is critical.

The lines (GL, WC, auto, inland marine) are the same, but the limits and endorsements differ. Residential remodel work typically runs $1M/$2M GL with limited additional insured language. Commercial work usually requires $1M/$2M to $2M/$4M GL, full ongoing + completed ops additional insured, primary/non-contributory, waiver of subrogation, and often a $1M–$5M umbrella. Tell your agent the project mix so the policy matches actual contract requirements.

GL and commercial auto are typically written on multi-state forms — list each state of operations and the policy responds. Workers compensation is state-specific: each state of operations must be listed on the policy (item 3.A on the WC info page), or the carrier may deny a claim for an injury in an unlisted state. Some monopolistic states (WA, WY, ND, OH) require a separate state-fund policy.

Yes, under inland marine / contractors equipment coverage — that is exactly the line's purpose. It covers your tools, equipment, and materials at the job site, in transit, and at temporary storage locations. A standard commercial property policy generally does not cover items off-premises, which is why a separate inland marine policy is the right line for contractors.

Florida has two license categories under the DBPR Construction Industry Licensing Board: Certified (statewide, work anywhere in FL) and Registered (work only in the local jurisdiction that registered you). Both require experience and exam. Specialty trades (electrical, plumbing, HVAC, roofing, etc.) have their own license divisions. Insurance is one of the requirements for both initial license and renewal — see the next question.

Yes — at both state and contractual level. State-licensed contractors must show proof of GL and either workers comp or a valid exemption to DBPR at license issuance and renewal. Minimum GL is $300,000 for Division I (general, building, residential) and $100,000 for Division II (specialty) under FS 489.115. Workers comp is required under FS 440.02 at 1+ construction employee. Local building departments and most GCs require higher limits than the state minimum.

For DBPR Construction Industry Licensing Board: a GL COI naming the state minimum limit ($300K for Division I, $100K for Division II) plus a workers comp COI or filed exemption certificate. The agent files the COI directly with DBPR. Most contractors carry $1M/$2M GL — well above the state minimum — because GCs, municipalities, and venues require it.