As a contractor in Florida, having proper insurance coverage is crucial for protecting your business, meeting state requirements, and securing contracts. This comprehensive guide breaks down the essential insurance coverages Florida contractors need, including costs based on our analysis of actual quotes from leading carriers.
Nail down the basics by exploring our guide to general construction insurance.
General Liability Insurance for Florida Contractors
General liability insurance protects your contracting business from third-party claims of property damage and bodily injury. Based on our analysis of over 800 contractor quotes, here are the typical costs for Florida contractors:
Revenue Size | Average Premium | % of Revenue | Favorable Premium | Potential Savings |
---|---|---|---|---|
$500K | $10,140 | 2.0% | $5,000 | 51% |
$1M | $16,580 | 1.7% | $9,990 | 40% |
$2.5M | $42,420 | 1.7% | $28,790 | 32% |
These premiums assume:
- Clean claims history (5+ years without incidents)
- Standard $1M/$2M coverage limits
- Typical mix of residential and commercial work
- Approximately 10% subcontractor costs
Worker’s Compensation Insurance for Florida Contractors
Worker’s compensation insurance is mandatory for Florida contractors with 4 or more employees. Based on our analysis, Florida contractors typically pay around $4,673 per employee annually for workers’ compensation coverage.
Key premium factors include:
- Employee classification codes
- Annual payroll
- Claims history
- Safety programs
- Experience modifier rating (EMR)
For Florida contractors, typical workers’ compensation costs per $100,000 of payroll average $12,610, which is relatively high compared to other states.
Common contractor classification codes and their approximate rates in Florida:
- Code 5606 (Project Manager/Supervisor): $3-5 per $100 of payroll
- Code 5645 (Residential Construction): $8-12 per $100 of payroll
- Code 5403 (Commercial/Large Projects): $12-17 per $100 of payroll
Additional Business Insurance for Contractors in Florida
1. Commercial Auto Insurance
- Typical cost: $1,000-$4,000 per vehicle annually
- Required for business-owned vehicles
- Higher limits often needed due to Florida traffic risks
- Coverage for accidents, theft, and damage
- Protection for vehicles used in business operations
2. Tools & Equipment Coverage
- Cost: $1,500-$5,000+ annually for $15k-$50k coverage
- Protection for equipment during hurricanes and storms
- Coverage for both owned and rented equipment
- Covers theft, damage, and loss at jobsites
- Protection during transportation between locations
3. Builder’s Risk Insurance
- Premium: 0.15-0.75% of project value
- Essential for hurricane and storm protection
- Coverage for projects under construction
- Protection against fire, theft, and vandalism
- Coverage for building materials and supplies
4. Commercial Property Insurance
- Annual premiums: $2,000-$20,000+
- Higher rates due to hurricane exposure
- Coverage for wind and flood damage
- Protection for offices and storage facilities
- Coverage for business equipment and inventory
5. Umbrella Insurance
- Critical for large-scale projects and contracts
- Additional liability protection
- Typically $1M-$5M in extra coverage
- Cost: $1,000-$2,000+ annually per million
- Extends protection beyond primary policy limits
Get Florida Contractor Liability with ContractorNerd
ContractorNerd specializes in making insurance simple and data-driven for Florida contractors. Our platform offers:
- Instant online quotes from top-rated carriers
- Side-by-side coverage comparisons
- Contractor-specific expertise and guidance
- Streamlined application process
- Ongoing policy management support
- Claims advocacy when needed
Our team of contractor insurance specialists understands Florida’s unique requirements and can help you:
- Optimize coverage levels based on your specific risks
- Find competitive rates through our carrier network
- Bundle policies for additional savings
- Ensure compliance with state regulations and contract requirements
To get started with tailored quotes for your Florida contracting business, visit our online quote tool or speak with one of our contractor insurance specialists today.