4 Types of Insurance Construction Companies in Florida Should Have

The Sunshine State is a leader in national construction spending. In 2021, for example, more than $37 billion worth of building permits were approved in Florida, only behind Texas.

With such numbers, it’s not difficult to see why more entrepreneurs are starting construction companies in the state. However, owners of construction companies in Florida must adhere to various industry regulations. One such regulation is insurance. 

In this article, we’re digging into Florida business insurance laws. Read on to learn the various insurance policies your company should have.

1. General Liability Insurance

Construction is a risky business. The risk of injuries to construction workers is high. There’s also the risk of property damage.

How do you protect your business from the financial consequences arising from such risks? If you damage a client’s property during a remodeling project, they can sue you for compensation.

This is where general liability comes in handy. If the claim is valid, your insurer will compensate the client accordingly.

In Florida, contractors must purchase at least $300,000 liability insurance for bodily injury, and at least $50,000 for property damage. In fact, you must purchase this coverage to get your general contractor’s license.

It’s prudent to buy more liability coverage as your business grows. As you take on more construction projects, your risk exposure increases.

2. Workers’ Compensation Insurance

Construction businesses with one or more employees must purchase workers’ compensation.

This type of insurance compensates your workers after they’ve been injured on the job. This protects your business from needing to pay for their medical expenses, loss of income, and other costs out-of-pocket.

This guide has more information on what you need to know about workers’ compensation insurance in Florida.

3. Professional Liability Insurance

Professional liability insurance is popular among doctors, lawyers, and accountants. But it’s also something construction companies need.

As a contractor, you’re providing a professional service. Sometimes a mistake can happen on the job. You can miss a deadline, for example. Or make a construction error that affects the quality standards of a building.

In either case, your client can sue for compensation. With professional liability coverage, you won’t worry about paying the settlement from your own funds.

This insurance policy isn’t legally required, but it’s in your best interest to purchase it.

4. Commercial Vehicle and Construction Equipment Insurance

If your company owns vehicles, it’s a requirement to purchase commercial auto insurance. In case of an accident, your company won’t have to suffer property losses or pay the medical bills of the injured.

Construction equipment insurance covers a wide range of construction machinery and equipment. It reimburses your company in the event of equipment damage during an accident or theft.

Construction Companies in Florida Must Be Insured

Construction companies in Florida must purchase general liability and workers’ compensation insurance. This is required by law. In addition, it’s wise to also purchase professional liability and equipment insurance policies.

Explore our blog for more business advice.

Kenneth

Kenneth is a proud native of sydney, born and raised there. However, he pursued his education abroad and studied in Australia. Kenneth has worked as a journalist for almost a decade, making valuable contributions to prominent publications such as Yahoo News and The Verge. Currently, he serves as a journalist for The Hear Up, where he focuses on covering climate and science news. You can reach Kenneth at [email protected].