Business insurance coverages for Florida businesses

Frequently Asked Questions

• What commercial insurance coverages does my business need?
  It depends on your industry, size, assets, employees, and contractual obligations. Core coverages usually include general liability, workers' compensation, commercial property, and commercial auto if you operate vehicles. Specialty lines like cyber, builders risk, professional liability, or surety bonds may also be needed based on what you do.
• How does a Business Owners Policy (BOP) differ from buying individual policies?
  A BOP bundles general liability and commercial property into one package, often at a lower cost and with simpler administration. It fits small to mid-sized businesses with predictable risks but doesn't include workers' comp, commercial auto, or specialty lines — those still need separate policies.
• Why is flood insurance separate from commercial property insurance?
  Flood damage is excluded from nearly every commercial property policy. Flood coverage comes through FEMA's NFIP or a private flood carrier on a separate policy. Lender requirements and FEMA flood zone designations often dictate whether you need it.
• What are Florida's workers' compensation requirements?
  In Florida, construction employers with 1+ employees must carry workers' comp. Non-construction employers with 4+ employees are also required. Contractors must verify subcontractor coverage before work begins — uncovered subs roll up to the GC's policy at audit.
• How does cyber liability insurance help my business?
  Cyber covers first-party costs (breach response, forensics, notification, credit monitoring, ransom payments) and third-party claims (failure to safeguard data, privacy violations). It also addresses cyber business interruption when systems go down after an attack.
• What's the difference between inland marine and commercial property?
  Commercial property covers buildings, contents, and equipment at a fixed location. Inland marine covers movable property, goods in transit, tools that travel between jobsites, and installation floaters — broader protection for mobile assets that property policies exclude.
• What is a surety bond, and how is it different from insurance?
  A surety bond is a three-party agreement guaranteeing the principal (you) performs an obligation to the obligee (a government agency or project owner). Unlike insurance, the surety can pursue you for reimbursement if a claim is paid. License bonds, permit bonds, and contract bonds are the most common types.
• How does an umbrella liability policy work?
  An umbrella sits above your underlying liability policies — GL, commercial auto, and employer's liability — and provides extra limits when a claim exceeds the underlying limit. Many contracts (construction, real estate, hospitality) require umbrella limits of $1M, $5M, or higher.
• Are there special considerations for commercial auto insurance in Florida?
  Yes. Florida Statutes § 627.7415 set minimum combined bodily injury and property damage limits for commercial motor vehicles by gross vehicle weight. DOT-regulated vehicles also have to meet federal financial responsibility minimums ($750K to $5M depending on cargo).
• How do I know if I need builders risk insurance?
  If you're constructing or renovating a building, builders risk protects the structure, materials on site or in transit, and related soft costs during the project — until completion, occupancy, or sale. Most commercial property policies exclude buildings under construction.
• What are 'additional insured,' 'primary & non-contributory,' and 'waiver of subrogation'?
  These are the three contract clauses that show up in nearly every construction and vendor agreement. Additional insured status extends your liability policy to protect the other party; primary and non-contributory wording makes your policy pay first; and a waiver of subrogation stops your insurer from recovering from that party after a claim. They are added by endorsement and usually required together. We review your contract and add the correct forms so your certificate is accepted.