Business Insurance Florida

Business Insurance in Florida: The Ultimate Guide

Florida prides itself on impressive small business statistics that house 2.5 million small businesses giving employment to 3.3 million people across various industries. Generally, small companies make up 99.8% of companies in the state and employ 42.2% of employees. 

With over 9 million workers, its labor force is the 4th largest in the United States. But despite the success of small businesses in Florida, and if you are thinking of starting or growing your small company, there are certain things that you have to consider. There are certain sections of increased liability that you have to be aware of to shield your company entirely.

Florida is known for being business-friendly, with no state income tax and relaxed regulations that allow common business practices. However, even though the state regulations are flexible, such as not requiring commercial liability coverage, the Florida court tends to offer large sums of money to plaintiffs. Hence, many small companies buy multiple insurances to protect themselves, even though it is not a legal requirement. 

Here’s everything you need to know about business insurance in Florida. 

business insurance florida

Florida Business Insurance Needs

Starting a business can be intimidating and costly, but acquiring business insurance does not have to be the same. The United States administration of small businesses has a guide for finding the type of coverage that you may need and the cheapest business insurance quotes. The cheapest insurance providers in the U.S. are the companies that have been in the business for so long. They commonly work with representatives and directly with small businesses. They also offer online applications where the insurance buyer can receive policies in minutes.

Business insurance providers offer different types of insurance policies, including home business insurance for home-based businesses, general liability, workers compensation, errors and omissions, and professional liability coverage policies. Because these insurers focus on business insurance, they can offer a business policy at competitive rates. Their utilization of data solutions to identify specialized risks has allowed them to offer even lower rates to their customers. 

What Business Insurance is Required in Florida?

State laws can influence the insurance needs of a business. Florida requires specific policies for businesses. Among these policies are the workers’ compensation insurance and Commercial auto insurance.

Workers’ Compensation Insurance

According to Florida state law, any company that has four or more employees (either full-time or part-time) is required to have workers’ comp insurance. Companies in the construction industry are required to carry workers’ compensation insurance even if they have one employee. 

Commercial Auto Insurance

Vehicles that are used for business purposes must be covered with commercial auto insurance. Florida’s minimum business insurance requirements are $10,000 claim per accident for property damage liabilities and $10,000 for bodily injuries.

Recommended Florida Business Insurance Policies

General Liability Insurance

General liability insurance covers common risks such as property damage and work injuries. Generals insurance or commercial liability insurance is not mandatory for Florida businesses. Still, if you have property or other assets, you would want to invest in this insurance policy to protect your business from financial losses caused by risks and income. The risks covered are theft, damage, or lawsuits.

Professional Liability Insurance

Professional liability insurance is also known as errors and omissions insurance. It protects professionals who work using their expertise and skills. It covers them from lawsuits due to negligence, or they could not perform as expected of them.

Cyber Liability Insurance

It protects businesses from data breaches or cyber-attacks by covering the client notification costs, legal fees, and other related fees.

Business Owner’s Policy

It is a bundle policy of combined property insurance and insurance for general liability in one plan. It is a cost-effective type of commercial insurance for a Florida business.

Most small companies need these insurance policies, especially if they are renting or owning an office or a commercial space at the same time, as businesses that work directly with clients and customers. Hence, many clients require general liability insurance as part of the contracts.

What Does Commercial General Liability Insurance Florida Cover?

Commercial general liability insurance provides coverage against common lawsuits from third parties. It covers your company’s legal defense fees if someone sues you over property damage, bodily injury, or advertising injury. It covers all the legal fees, such as the lawyer’s fee and court-ordered judgments and settlements.

Florida Business Liability Costs

The liability insurance costs in Florida depend on insurance companies. Factors that affect the liability insurance rates are the business’s gross sales, payroll for employees and business owners, the location of the business, and any subcontractor exposures. Insurance rates vary at a rate of $1,000, considering those factors.

A typical Florida business can expect to pay between $300 and $5,000 per year for the insurance with the general liability. However, the final cost of liability insurance from one company to another will vary based on the SIC code or the insurer’s own classification system. Some other factors utilized to increase insurance costs include the business’s nature, physical location, previous claims experience, and industry years.

How Much Does Business Insurance Cost in Florida?

Forming an LLC can be extra protection for your personal assets. It is a business structure option that covers your personal assets against debts and lawsuits. However, it does not mean your assets will be untouchable. Just like other business structures, an LLC also faces risks. Hence, it is important to acquire insurance for your LLC. LLC insurance can soften the financial expenses brought about by a lawsuit that your business may face.

The price of small business insurance in Florida varies due to factors, including the type of business, number of employees, and type of policy. The higher risk the company faces, the more expensive an LLC business insurance is. Although your business is having a hard time with the budget, obtaining LLC insurance is one of the best investments.

The following are the median costs for the most recommended LLC insurance policies in Florida.

  • General liability insurance:$500 per year, or about $42/month
  • Business owners policy: $636 per year, or $53/month
  • Workers’ compensation insurance: $560per year, or about $47/month
  • Professional liability insurance: $713per year, or about $59/month
  • Cyber liability insurance: $1,675per year, or about $140/month
  • Commercial auto insurance: $1,704 per year, or $142/month

Florida LLC’s business needs and risks are different. In order to find out which insurance coverage best suits your needs, evaluate the biggest threats to your business.

Do You Need Business Insurance for an LLC in Florida?

The only type of insurance that is required in Florida is workers’ compensation insurance. While not required by the law, business insurance in Florida is recommended for business owners to protect their most valuable assets and finances. 

Best Liability Insurance for Small Business Florida

Acquiring fast and affordable business liability insurance is easier in Florida. It can be acquired through business liability specialists’ assistance for a simple and more convenient application process and to help customers qualify for lower rates and more suitable insurance quotes.

Most business owners in Florida are required to purchase insurance by the general liability to protect them from direct and indirect damages to third parties. The liability insurance will help pay for the damages caused by your business or your employees. There are affordable general liability programs for different types of businesses in Florida, such as retail stores, contractors, restaurants, healthcare, and more. 

How Much is a Business License in Florida?

The typical Florida business license doesn’t cost too much and you can expect to spend less than $100

What Is the Average Cost of Florida Small Business Insurance?

The insurance need of the small businesses in Florida depends on the nature of the business types and their various risks. However, most businesses need general liability insurance to protect them if customers get hurt in their place of business.

Florida’s small business insurance costs vary differently based mainly on the industry, location, and types of coverage. Small businesses without employees are expected to pay from $800 to $1,500 every year for basic coverage. But, businesses with facilities or equipment, that have employees, or provide professional advice can expect to pay more each year to protect them against specific risks. Simultaneously, businesses that choose higher coverage limits, lower deductibles, additional coverages, or endorsements can expect higher costs.

Business owners in Florida need an insurance company they can work with as they grow. They need coverage that is easy to find, purchase, and understand. Find an insurance company in Florida that offers a wider range of coverage and has strong ratings for financial stability and good customer feedback. East Insurance Group is a trusted insurance company that offers policies in Orlando, Gainesville, and other cities across Florida. 

For a Florida business to survive and succeed in the world today, it has to be agile and flexible to the changing times. Obtaining business insurance should be held to the same standards. It does not have to be a one-size-fits-all insurance policy. Instead, some insurance companies in Florida offer customized business insurance policies to suit your business needs.

Confused about business insurance in Florida, or need some help getting a quote for your business? Call us or fill out a quote request form and get all the information you need fast and for free!