Florida Business insurance

Contractor Insurance in Florida - How Much is it?

Contractors are fully aware of their liabilities when it comes to eventualities while in the course of completing contract work. People who engage in contracting business are 100 percent liable in case one of the workers, a client, or anybody gets hurt in the worksite. And it also means that these people who are injured can easily file claims against you and your business. In the same way, if any of your workers caused damage to any property under your contract, expect unbelievable claims from your client! If you do not have insurance for general liability in the State of Florida, it might mean the worst for your business. 

Each state in the US has its own liability insurance requirement for general contractors. If you comply properly with these requirements, you and your business will be covered and protected from claims and lawsuits. 

What Does Florida General Liability Insurance Cover?

If you’re starting a general contractors business in Florida, you have to get insurance by the general liability for your company. It will protect your finances from dwindling due to obligations to pay for damages or medical bills resulting from injuries, damages, or injury to third parties during the course of your contractor’s work. Having general liability insurance is highly recommended for contractors to maintain coverage for any eventualities.  More so, general contractors are often asked to provide proof of insurance when they are bidding for a project. 

Generally, a policy for liability insurance with the general liability provides coverage from third party claims due to personal injury and property damage from the operation of the insured contractor. It does not cover harm due to faulty workmanship as well as damages to their work. Only claims due to bodily injury, product and completed operations, property damage, medical bills, advertising, and personal injury will be covered. Here the descriptions of such insurance:

Bodily Injury

It pertains to sickness, injury, or diseases acquired by the person. It includes death.

Property Damage

Pertains to injury to tangible property as well as the resulting loss of such property. 

Product and Completed Operations

This insurance coverage provides for injury whether bodily or property damage after the project is concluded. However, it only covers work done during the period of the policy.

Medical Bills

Florida generals insurance also cover medical payments for bodily injury due to accidents under the policy period. The cap for this is usually $5,000. 

Personal and Advertising Injury

This pertains to injury due to false arrest, wrongful eviction, malicious prosecution, copyright infringement, libel, publication slander, use of another’s idea in the advertisement, and violation of privacy. This portion is not commonly included in the contractor general liability insurance.  But it should be included as there are risks of having these instances during the contract period. 

Most liability insurance general offers coverage with caps at $1 million per incidence, $2 million coverage for aggregate claims, and another $2 million for coverage in product or completed operations claims. As a contractor, you need to discuss variations of these limits with your insurance companies. Explore your options and if possible, ask quotations from various companies to see which one has the best offers. You may also ask for quotes on additional coverage limits if you will be using an Express policy. This policy will cover your company beyond the maximum limits of the Florida General Liability insurance. 

How Does Claims Work Under the Florida General Liability Insurance?

A Florida general liability insurance can be utilized based on two types of coverage. One is for the occurrence and the other is thru claims-made. When we say occurrence policies, it is about the claims that happened within the policy period. Claims-made policies are those that were claimed when both occurrence and resulting claim happened while the policy is still in effect. Claims-made policies are typically not accepted by third parties as a valid General Liability insurance, thus it is recommended that contractors also get occurrence coverage and focus on claims processes under these policies. 

Other Coverage Florida Contractors General Insurance Need

Apart from what Florida general liability insurance covers, you will also need Florida contractors insurance that will provide coverage for other facets of your business. Here are some of them. 

Third-Party Coverage – so under general liability, this is the coverage you get for injuries that happen in your worksite. As a contractor, you need this in your Florida contractor insurance policy at any cost. It also covers property damage on the guest and visitors.

Tools and Equipment Coverage (BOP) – if you buy or rent tools and equipment for your contract site, you have to get the insurance that will cover them in case they are damaged or lost. Even if you lose small items, replacing them can become expensive out of pocket for contractors. This coverage is easy to add to your Florida contractor insurance policy. 

Workers Compensation – this is a crucial policy that you should have in your Florida general contractors insurance to cover workers compensation. Compensation insurance will ensure that there is payment for lost wages, hospitalization, and medical expenses for employees injured while at work.  You can also check if it covers illness on the job and circumstances that may arise after the contract is completed. 

Business Vehicle Insurance -if you use vehicles in your construction sites, you need to get a business vehicle coverage for each unit. This will cover car accidents that may happen while you are driving for business. In some cases, personal car insurance does not cover these instances. 

Bonds – getting a bond guarantees your services in the industry. In case of a breach of contract, you have to pay a hefty fee which is why bonds are required in a Florida general contractor insurance. 

Wrap Up

The State of Florida is a bustling state with plenty of opportunities for work and business. It continues to rise in terms of economy, tourism, and urban development. It is an ideal place for contractors to offer their services as constructions done everywhere. Make sure you understand what is being asked in a Florida contractor insurance so that you can smoothly join the industry while ensuring that you and your business have ample coverage. You may also discuss with insurance companies your need for extra coverage for workers compensation or compensation insurance to secure your employee’s well-being.

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