Florida Contractor Insurance Requirements

Frequently Asked Questions

• Does Florida require contractors to carry general liability insurance?
  Florida's contractor licensing law sets financial responsibility and, for some license types, requires evidence of public liability and property damage insurance to obtain or maintain a license. Beyond licensing, most general contractors, owners, and property managers require general liability by contract — frequently $1,000,000 per occurrence — before they will let a contractor on the job. Requirements vary by license category and by the contract, so verify both before assuming a minimum. [1]
• Do Florida contractors need workers' compensation insurance?
  In the construction industry, Florida generally requires workers' compensation coverage for employers with one or more employees, including the owner unless a valid exemption is on file. This is a stricter threshold than non-construction businesses, which generally trigger the requirement at four or more employees. Officers of a corporation or members of an LLC in construction may apply for a limited number of exemptions. [2][3]
• What is the difference between a state license and a registration?
  Florida issues certified (statewide) licenses through the Construction Industry Licensing Board, and historically allowed registered (local) licenses tied to a local competency card. Licensing categories, exam requirements, and financial responsibility differ by trade. Some specialty trades are regulated locally. Confirm the exact category with DBPR and your local building department. [1]
• Why do my customers ask for more insurance than the state requires?
  Licensing minimums and contract requirements are two different things. A general contractor, developer, HOA, or municipality can require higher general liability limits, additional insured status, waiver of subrogation, primary and noncontributory wording, completed operations, per-project aggregate, and proof of workers' compensation — none of which are satisfied just by holding a license. Review the contract's insurance section before signing.
• Do subcontractors need their own insurance?
  Yes, in practice. Under Florida workers' compensation law, a contractor can become responsible for an uninsured subcontractor's employees, and at audit, carriers commonly default uninsured subcontract cost into the contractor's payroll. Collect a current certificate of insurance — and the proper additional insured endorsement — from every sub before work begins. [2]
• Does Ellie Insurance Group only write Florida contractors?
  No. Ellie Insurance Group is headquartered in Tampa, FL with a Brooksville location and is licensed in Florida, Texas, North Carolina, South Carolina, Georgia, New Mexico, and Utah. Florida is the home market, but contractor programs are placed across those states as well.