Florida General Contractor Insurance Tips

As a general contractor, it is important to have the proper liability insurance. Liability insurance protects you against claims of property damage, personal injury, or negligence. In fact, in most states, you are usually able to bid for work without liability insurance, however, you cannot perform the work without it.

Usually, insurance owner's or general contractors are required to have $2 million worth of liability insurance. However, the amount of insurance you need varies based on the work to be doing, as well as the total payroll expenses, and other factors.

Finding a Reliable Insurance Company

A good way to find a good insurance is to look at several insurance companies and ask other contractors which companies they're using. That will give you a good way to find out about the performance of the company. Also, be sure to find out what the rating of the insurance company is.

What Is the Minimum Amount of Required Insurance For General Contractors in Florida?

As of writing this currently the minimum amounts required for general liability insurance are:

  • General and building contractors
    • $300,000 bodily injury
    • 50,000 property damage
  • All other categories
    • 100,000 bodily injury
    • 25,000 property damage

Keep in mind, many property owners may require more than the minimum.

Admitted vs Non-Admitted Insurance Carriers

In the state of Florida, there are admitted and non admitted insurance carriers. What this means is is that an admitted insurance carrier is required to place a certain amount of funds into an account which protects policy purchasers if the carrier goes out of business or files bankruptcy. However, depending on the rating of the insurance company, it might be better to go with an A + + non admitted insurance company than a B + admitted company. This is why it is important to talk to other general contractors to find out what insurance companies are reputable.

General Contractor Insurance Certificates

It is always important to ensure that your insurance agent provides you with a certificate of insurance. Usually, this certificate is required to be posted on site or be able to show it before you can start work on the job. If you do not have the certificate of insurance, you have the possibility of breaching a contract because you are unable to be on the job when you're supposed to simply because you don't have the insurance certificate. And, you must have the original certificate of insurance, and not copy. Understand also that it is not unreasonable to demand that a certificate be processed on the same business day that you have made the request.