What contractor insurance in Florida actually requires
If you're a contractor working in Florida, contractor insurance in Florida is not optional paperwork you deal with later. The state ties your ability to pull permits, keep your license active, and get paid directly to having the right coverage in place. Miss a requirement and you're looking at license suspension, personal liability exposure, or a job shutdown on a project that was going fine. This post breaks down exactly what you need, what the state mandates by license type, and how bonding fits into the picture.
Florida contractor license types and their insurance rules
Florida's Construction Industry Licensing Board (CILB) oversees most contractor licenses, and the Florida Department of Business and Professional Regulation (DBPR) administers them. The state splits contractors into two main tiers, and the insurance requirements differ between them.
Certified contractors
A certified contractor holds a statewide license and can work anywhere in Florida. To qualify for and maintain a certified contractor license, Florida Statute 489.115 requires proof of general liability insurance with minimum limits of $300,000 per occurrence for most trades, along with workers' compensation coverage that meets the requirements of Chapter 440 of the Florida Statutes. The CILB requires you to file a certificate of insurance naming the DBPR as a certificate holder, and your insurer must notify the board if your policy is cancelled.
Registered contractors
A registered contractor is licensed through a local jurisdiction, such as Broward County or Miami-Dade County, and can only operate in that area. Local requirements often mirror or exceed state minimums. Broward County, for example, typically requires the same $300,000 general liability floor and may ask for higher limits on certain specialty trades. Always verify current local requirements directly with the jurisdiction where you're pulling permits.
Roofing contractors
Roofing is its own category in Florida. The state increased scrutiny on roofing contractors significantly following storm-related fraud concerns in South Florida. Roofing contractors must carry general liability with limits of at least $300,000 , but many project owners and general contractors will contractually require $1,000,000 per occurrence . Workers' compensation is mandatory for roofing contractors regardless of how many employees they have, which is stricter than most other trades.
General liability insurance: what it covers and why the limits matter
General liability (GL) insurance is the foundation of any contractor's coverage program. It covers third-party bodily injury and property damage claims that arise from your operations. Consider a subcontractor who accidentally damages a homeowner's floor in Davie, or a pedestrian injured on a job site in Fort Lauderdale. Without GL, those claims come out of your pocket or your business assets.
Florida's minimum of $300,000 per occurrence is a floor, not a recommendation. In South Florida's construction market, where projects involve expensive properties and high-traffic commercial buildings, most project owners, general contractors, and commercial landlords require $1,000,000 per occurrence / $2,000,000 aggregate as a contract condition. Going into a bid underinsured means you lose the work or get pulled from the project.
General liability also typically includes products and completed operations coverage , which matters for contractors. This covers claims that arise after a job is finished. If a deck you built in Weston fails six months later and injures someone, completed operations is what responds. Learn more about what this coverage includes on our general liability insurance page.
What GL does not cover
General liability will not cover damage to your own tools, equipment, or materials on site. It does not cover your commercial vehicles, your professional errors on design-build work, or employee injuries. Those gaps require separate policies, which is why contractors in Florida need a layered coverage program rather than a single policy.
Workers' compensation requirements for Florida contractors
Florida has some of the strictest workers' compensation requirements in the country for the construction industry. Under Florida Statute 440.02, any business in the construction industry with one or more employees must carry workers' compensation insurance . This applies to both full-time and part-time workers, and to LLC members and corporate officers who are active in the business unless they file a valid exemption with the Florida Division of Workers' Compensation.
The exemption route is common among small shops, but it carries real risk. If a sole proprietor or officer files an exemption to avoid premium costs and then gets hurt on a job, there is no workers' comp to fall back on. Medical bills and lost wages become a personal problem. For contractors running crews in Pompano Beach, Miramar, or anywhere else in South Florida, carrying coverage is almost always the better choice over relying on exemptions.
The penalty for non-compliance is a stop-work order and a fine equal to twice the amount of premium that should have been paid for up to a two-year lookback period. The Florida Department of Financial Services (DFS) conducts random job-site audits, and South Florida is an active enforcement area.
Surety bonds: license and permit bonds vs. contract bonds
Bonds are not insurance, but they work alongside your insurance program and are often required for the same reasons. Florida contractors may need two different types.
License and permit bonds
Some Florida counties and municipalities require a license and permit bond as part of the contractor registration process. These bonds protect the public and the jurisdiction by guaranteeing you will follow applicable laws and codes. The required bond amount varies by county and trade. Miami-Dade and Broward County have their own bond schedules, so check the specific requirement before registering.
Contract (performance and payment) bonds
On public projects in Florida, the Little Miller Act (Florida Statute 255.05) requires contractors on public construction contracts over $200,000 to carry performance and payment bonds. Performance bonds guarantee you'll complete the contract. Payment bonds guarantee you'll pay your subcontractors and material suppliers. Private project owners on large commercial jobs often require the same bonds contractually even when the statute does not apply. Our surety bonds page covers the types we can help contractors obtain.
Other coverage gaps contractors in South Florida should not ignore
Beyond the mandatory minimums, several coverage areas catch Florida contractors off guard when a claim actually happens.
Inland marine and tools coverage
Your general liability policy does not cover your equipment. Inland marine insurance , also called tools and equipment coverage, protects the gear you bring to and from job sites. In South Florida, where job sites can span Fort Lauderdale, Hollywood, and Doral in the same week, the exposure is real. Equipment theft is also a persistent issue on active construction sites. See our inland marine coverage page for details on what this includes.
Commercial auto
If you use any vehicle for business purposes, your personal auto policy will not cover a work-related accident. A pickup truck hauling materials to a job site in Pembroke Pines is a commercial exposure. Florida requires commercial auto insurance for vehicles titled to a business, and most personal auto carriers will deny claims if the vehicle was being used commercially at the time of the loss.
Builders risk
Builders risk insurance covers a structure under construction against damage from fire, wind, theft, and other perils while the project is in progress. In South Florida's hurricane zone, that coverage matters more than almost anywhere else in the country. Coverage typically runs from groundbreaking to project completion. Whether the owner or the contractor carries the policy is a contract negotiation, but someone needs to have it. Our builders risk page explains how the coverage works and when to buy it.
Commercial umbrella
If a serious injury or large property-damage claim exceeds your GL limits, a commercial umbrella policy provides an additional layer of protection above your primary policies. For contractors working on high-value commercial projects or multi-family developments in Miami-Dade or Broward County, a $1,000,000 to $5,000,000 umbrella is not unusual. It is also relatively inexpensive compared to the risk it covers.
How the Florida contractor insurance market works in South Florida
South Florida has a challenging insurance market. The same factors that drive up homeowners insurance rates (storm exposure, litigation history, and reinsurance costs) also affect commercial lines for contractors. GL premiums for roofing and general contractors in Broward and Miami-Dade counties are among the highest in the state. Some admitted carriers have pulled back from writing certain contractor classes, pushing coverage into the surplus lines market.
This is where working with an independent insurance agency matters. An independent agent can access multiple admitted and surplus lines carriers to find coverage that fits your trade, your project types, and your budget. A captive agent writing for one company cannot do that. If your current policy was quoted by a single carrier without a comparison, there is a real chance you are overpaying or have gaps you are not aware of.
For an overview of what a broader commercial insurance program looks like beyond contractor lines, our guide for Hollywood business owners on commercial insurance covers many of the same principles that apply to contractors operating in this market.
Get the right contractor insurance in Florida with Marker Insurance
Marker Insurance is an independent insurance agency serving contractors across South Florida, including Fort Lauderdale, Hollywood, Miramar, Pembroke Pines, Davie, Doral, and the surrounding area. We compare rates and coverage across multiple carriers so you get a program that meets Florida's licensing requirements and actually protects your business when something goes wrong on a job site.
Whether you need a basic GL policy to satisfy the CILB, a full package with workers' comp, inland marine, and builders risk, or a surety bond for a public project, we can put it together. Call us at (954) 456-7505 or contact us online to get a quote and make sure your license stays protected.
