Florida contractors face insurance requirements from two directions: the state, and the general contractors and clients they work for. Here is what you actually need.
| Coverage | Who requires it | Typical limit | What it does |
|---|---|---|---|
| General liability (GL) | Your license, GCs, municipalities, clients | $1M/occurrence, $2M aggregate | Third-party bodily injury & property damage from your work |
| Workers' compensation | Florida law — construction with 1+ employees | Statutory | Medical bills & lost wages for employee injuries; lawsuit shield |
| Commercial auto | FL law for business vehicles; often GCs | $1M common | Liability & physical damage for work trucks and vans |
| Tools & equipment (inland marine) | Your risk; sometimes lenders | Scheduled value | Theft or damage to tools and equipment on site or in transit |
| Commercial property / BOP | If you own or lease a shop or yard | Varies | Your building, contents, and business operations |
General liability
Covers third-party bodily injury and property damage from your work. Most general contractors and municipalities require proof before you can start, commonly $1 million per occurrence and $2 million aggregate. Even where it isn't tied to your license, you effectively cannot operate without it.
Workers' compensation
Florida requires workers' comp for construction businesses with one or more employees — a stricter threshold than the four-employee rule for non-construction. It covers medical bills and lost wages for on-the-job injuries and shields you from injury lawsuits. Owners can often file an exemption. (More in our workers' comp guide.)
Workers' comp exemptions for owners
In construction, owners can file a state exemption for themselves — up to three corporate officers, or up to three qualifying members of an LLC. The exemption only removes those owners from the coverage requirement; the business must still carry workers' comp for every actual employee, and most general contractors will still want to see a policy (or a valid exemption certificate) before you set foot on the job.
Why GCs require both — plus additional insured
To get on most jobs you will need to name the GC as an additional insured and hand over a certificate of insurance, often with a waiver of subrogation. No paperwork, no work.
Don't forget commercial auto and tools
If you drive work trucks or carry tools, personal auto won't cover them — you'll want commercial auto and a tools-and-equipment (inland marine) endorsement.
How much does contractor insurance cost?
It depends on your trade, payroll, and revenue. Workers' comp is rated per $100 of payroll by class code, so a roofer pays far more than a finish carpenter. General liability is driven mainly by your annual revenue and the risk of your trade. Because rates swing so much by class code and carrier appetite, shopping an independent agency that writes multiple construction markets is usually the difference between a competitive number and an eye-watering one.
Frequently asked questions
Do Florida contractors need workers' comp?
Construction businesses must carry it with one or more employees. Owners can often file an exemption, but the business still needs coverage for any employees.
How much general liability do contractors need?
$1 million per occurrence and $2 million aggregate is the common requirement, but always check each general contractor's or municipality's contract.
Do I need general liability as a sole proprietor?
Almost always, yes. Clients and GCs require proof of coverage before letting you work, regardless of your business structure.
Does Florida require contractors to have insurance for their license?
Yes. Florida's contractor licensing law requires proof of public liability and property damage insurance to get and keep your license, with minimum amounts that vary by license division. General contractors and municipalities usually require more — commonly $1 million per occurrence and $2 million aggregate.
Can I get a workers' comp exemption in Florida?
In construction, up to three corporate officers or qualifying LLC members can file a state workers' comp exemption for themselves. The business must still carry coverage for any employees, and GCs often still require a policy or a valid exemption certificate.
What is an additional insured and why do GCs ask for it?
An additional insured is a party — usually the general contractor or property owner — added to your general liability policy so it also protects them for claims arising from your work. GCs require it, plus a certificate of insurance and often a waiver of subrogation, before you can start.
Bidding a job and need coverage fast?
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