Are you a contractor in Florida? Do you want to make sure that your professional career is protected from potential liabilities that arise against you? If so, contractor insurance in Florida is a must-have for your Business. This article will explain why contractor insurance in Florida is important, its coverage options, and where to get it.
Where to Get Contractor Insurance in Florida?
If you’re looking for contractor insurance in Florida, here are a few options to consider. Here are some potential avenues to explore:
Next Insurance
Pros
- Discounted rates of 10% when purchasing multiple insurance policies at once.
- Quick and simple online quoting
- A strong reputation among customers despite the company’s low age.
Cons
- Inadequate depth of construction-specific expertise
- Not as well-established or well-funded as compared to its well-known rivals
Liberty Mutual:
Pros
- A systematic approach based on construction industry knowledge
- Highest possible scores for financial stability
Cons
- The level of customer satisfaction could be higher.
- No online quote retrieval option
State Farm Insurance
Pros
- Insurance packages specifically designed for small and medium-sized businesses
- Agents spread over the country
- Customer happiness and stability are among the best in the market
Cons
- Not a good fit for construction firms that handle larger or more complicated projects.
- Poor internet services for making purchases, managing policies, and keeping tabs on reimbursements
Nationwide Insurance
Pros
- Access to multiple coverage options and endorsements
- Proven track record of dealing with contractors and building trades
- Highest possible grades in terms of both credibility and financial strength ratings
Cons
- It has been said that prices are greater than those of other insurance companies.
- Buyers have to reach an agent directly to get coverage.
Online Marketplaces:
Another option is to use an online insurance marketplace to compare policies and find the best rates. Some popular online marketplaces for contractor insurance include:
Simply Business: Simply Business is an online insurance broker that offers a range of insurance products for small businesses, including contractors. They offer professional, general, and workers’ compensation insurance.
Hiscox: Hiscox is another online insurance provider that offers coverage for contractors. They provide general liability insurance, professional liability insurance, and commercial auto insurance.
Insurance Brokers
:
A broker can help you compare policies and obtain the right coverage. Some insurance brokers in Florida that specialize in contractor insurance include:
Talage Insurance: Talage offers a range of commercial insurance products, including general liability, workers’ compensation, and commercial auto insurance. They search multiple providers for the best coverage at the best price
.
Insurance321: Insurance321 is a Florida-based insurance agency that specializes in contractor insurance. They offer liability, property coverage, and surety bonds.
Before buying contractor insurance, compare policies from various companies to discover the greatest coverage and pricing.
What insurance policies a contractor buys in Florida?
Insurance needs for general contractors differ from project to project and client to client. These policies are commonly purchased by general contractors in Florida.
Contractor general liability Insurance Florida
General liability insurance is the foundation of a contractor’s safety net. It covers client injuries, property damage, and commercial injuries. Commercial landlords, clients, or lenders require a certificate of insurance demonstrating that you have this liability coverage.
By purchasing commercial umbrella insurance, you can extend your general liability coverage and other policies.
Contractor Business Owner’s Policy Florida
Business owner’s policies are common for independent or small-business general contractors. (BOP). Its discounted policy includes business property insurance and public liability insurance.
Expert agents recommend business owner’s policy (BOP) because it provides affordable coverage and protection against common liability claims and company property.
Contractors Workers’ compensation insurance Florida
Florida requires companies with one or more construction or home improvement employees to carry out workers’ compensation insurance. Workers’ compensation provides medical and lost wages for injured workers.
Contractors Commercial auto insurance Florida
Your contracting company’s vehicles must be covered by commercial auto insurance. It covers damages to your car, injuries sustained in an accident, robbery, natural disasters, and vandalism.
Contractor’s tools and equipment insurance in Florida
General contractors should invest in contractor tools and equipment insurance to safeguard their expensive power tools such as saws, nail guns, and drills. This policy will protect your valuable assets during transport.
Contractors Professional liability insurance Florida
By purchasing professional liability insurance, general contractors can defend themselves from legal action based on negligence claims. Errors and omissions insurance is an alternative term for this protection. (E&O).
Contractors Surety Bonds Florida.
The surety bond enables the client to receive monetary compensation if a general contractor fails to fulfill their contractual obligations. Payment, performance, and bid bonds are common types of surety bonds.
Contractors Builder’s risk insurance Florida
Builders’ risk insurance covers losses resulting from fires, vandalism, theft of construction materials, and other perils.
How much does contractor insurance costs in Florida?
Here are the top policies purchased by general contractors and their average monthly cost:
- Public liability insurance costs $142 per month
- Commercial auto insurance costs $180 per month
- The contractor’s tools and equipment costs $14 per month
- Workers’ compensation costs $318 per month
- Builder’s risk insurance costs $134 per month
- Surety bonds cost $10 per month
Florida general contractor insurance cost as compared to other states:
| State | General liability | Workers’ comp |
| California | $144 | $590 |
| Florida | $104 | $532 |
| New York | $115 | $329 |
| Texas | $152 | $306 |
What are Florida Contractor Insurance requirements?
To legally conduct Business in Florida, contractors are required to have liability insurance. The specific insurance requirements depend on the type of contracting work being performed.
General Liability Insurance is a common requirement for most contractors in Florida. This form of insurance provides coverage for claims involving property damage, bodily injury, and personal injury that arise during the contractor’s work.
In addition to general liability insurance, some contractors must carry workers’ compensation, commercial auto, or professional liability insurance.
Florida contractors must verify their insurance coverage with the state and industry association. Failure to carry the proper insurance can result in fines, penalties, and legal liability for contractor-related damages and injuries.
What does Florida’s general contractor do?
General contractors construct or renovate structures. They oversee the construction work and site. Most contractors have a core team and outsource the remainder to specialists. Paper contractors do not construct anything.
They typically serve as “prime” contractors and perform framework, masonry, and metal building erection. Subcontractors complete the remaining tasks.
The general contractor overseas site preparation, foundation excavation, and building completion, including the interior finish. The general contractor decides the architect’s design’s materials, quality, timetable, and project and subcontractor insurance.
The contractor then requests proposals from subcontractors and vendors. The general contractor and project owner award the successful subcontractors. Additionally, the general contractor must conform to municipal, state, and zoning regulations. It includes purchasing permits and obtaining the necessary surety bonds.
Contractor Insurance Florida | FAQs
What is the minimum insurance required by a contractor in Florida?
Florida requires general contractors to have $300,000 in bodily injury and $50,000 in property damage liability insurance before licensing.
How much is a contractor license in Florida?
In 2021, the application fee for a Certified Contractor license in Florida was $349, while the price for a Registered Contractor license was $249. There may be additional exam fees, background checks, and other requirements.
