If you're a contractor in Florida, insurance isn't optional — it's the foundation of your license, your contracts, and your reputation.

But between state requirements, municipal rules, and client demands, it can feel confusing. So let’s break it down clearly.

Here’s what Florida contractors actually need — and why.

 

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1. General Liability Insurance (GL)

Required for most Florida contractor licenses.

General liability insurance protects your business if:

• Someone is injured on your job site

• You cause property damage

• A lawsuit is filed over completed work

Many Florida contractor licenses require proof of GL with minimum limits (often $300,000–$1M depending on trade and county).

Even when not strictly required, it’s essential in Florida’s high-litigation environment. A single claim can exceed $100,000 quickly.

Pro Tip: Many contracts require higher limits than the state minimum. Always check before bidding.

 

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2. Workers’ Compensation Insurance

In Florida:

• Construction businesses with 1 or more employees must carry workers’ comp

• Corporate officers may qualify for exemption (but not always)

Workers’ comp covers:

• Employee medical expenses

• Lost wages

• Employer liability protection

Florida enforces workers’ comp aggressively. Stop-work orders and heavy fines are common for non-compliance.

If you use subcontractors, you may still be responsible if they don’t carry proper coverage.

 

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3. Commercial Auto Insurance

If your vehicle is titled to your business — you need commercial auto.

This includes:

• Work trucks

• Vans

• Trailers

• Fleets

Personal auto policies typically deny claims if the vehicle is used primarily for business.

Florida also has a high percentage of uninsured drivers, making uninsured motorist coverage especially important.

 

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4. Surety Bonds

Many Florida contractors must carry:

• Contractor license bonds

• Permit bonds

• Bid bonds

• Performance bonds

Bonds guarantee you’ll complete the job as agreed.

Without the correct bond, you may not be able to:

• Pull permits

• Bid on public projects

• Finalize contracts

Fast bond turnaround can mean the difference between winning and losing a job.

 

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5. Commercial Umbrella Insurance

As you grow, your risk grows.

Umbrella insurance adds additional liability limits above:

• General liability

• Commercial auto

• Sometimes workers’ comp

Many Florida contracts require $2M–$5M in total liability limits. An umbrella policy is often the most cost-effective way to meet those requirements.

 

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6. Professional Liability (E&O) — If You Design or Advise

If you:

• Offer design-build services

• Provide consulting

• Make recommendations

• Sign off on plans

You may need Professional Liability (E&O) insurance.

General liability does NOT cover professional mistakes.

 

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Why Florida Contractors Need Local Insurance Guidance

Florida isn’t like other states.

You’re dealing with:

• Strict licensing enforcement

• Hurricane and storm exposure

• High claim frequency

• Rapid job timelines

• Certificate of insurance demands

Working with a boutique, local agency means:

• Faster certificates

• Contract review assistance

• Help understanding your license requirements

• Coverage that evolves as your business grows

 

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Final Thought

Insurance for contractors isn’t just about checking a box.

It’s about staying licensed, winning jobs, protecting your crew, and making sure one claim doesn’t undo years of work.

If you’re unsure whether your coverage truly matches your license or contracts, it’s worth reviewing before your next bid.