What are the Insurance Requirements for Florida Contractors?

Before we move on to discussing insurance requirements of contractors license in the state of Florida, let’s first start with understanding who a Florida general contractor insurance if for. It is basically for contractors managing new buildings, renovation services, and all other tasks related to the entire project. Normally Florida contractors have area of specialty in family homes, restaurants, commercial buildings, stadiums and factories. Mostly Florida contractors first look into specification like design, work and material and then schedule phases of the entire project as well as insurance requirements as a whole and for subcontractors.

Before initially issuing or renewing a contractor’s license in the state of Florida, the applicant should show evidence that they have in place, the mandated insurance policies. To be able to accomplish this, the applicant should give a signed affidavit showing that he or she has gotten and will keep property damage and public liability insurance throughout the period of the contractor’s license in Florida. This is important for the public’s safety, welfare, and protection.

In order to check on the signed affidavit’s accuracy, the Construction Industry Licensing Board will perform random sample audits of FL contractor’s license per zip code. After a written request from the Board, every Florida contractor’s license holder, within 30 days of the mailing request, must give proof of coverage using a Certificate of Insurance (original).

The Certificate of Insurance is really crucial because it has to be updated on the job site, prior to working on any contract. If you do not have it, you would probably be breaching the contract and can lead to legal complications under the Florida contractor’s lawsuit.

The company with a general contractor license in Florida, can give a certified copy of insurance showing licensee has proper amount of property damage and public liability insurance. However, the insurance coverage has to be consistently maintained from the time of renewal of the previous FL contractor license.

The Certificate of Insurance should be put together by the insurance agency. It must have these information so that it can meet Board requirements:

(1) Issuance date of the Certificate of Insurance

(2) Insurance agent’s name

(3) Insured’s name, which should be the same as the business organization

(4) Insurance company’s name

(5) Policy number

(6) Policy’s effective date

(7) Policy’s expiration date

(8) Correct total amount for property damage and public liability.

Note that as a general contractor or for building contractors, the liability is $300,000 while property damage is $50,000. For all other contractors, liability is $100,000 and property damage is $25,000. Take into consideration that a lot of property owners would need more than the given minimum.

For validity purposes in the state of Florida, the Construction Industry Licensing Board, and the Department of Business and Professional Regulation must be the certificate holder. The cancellation notice should include the following: if the property damage and public liability coverage were cancelled prior to the expiration date, the issuing company would have to mail a 3o-day written notice to the certificate holder. In addition, the construction insurance would have to be under the name of the one who has the contractor’s license in Florida. If there is no appropriate insurance coverage for the state, it can lead to repercussions.

Contractors Reporting Services in Tampa, FL, gives the support needed by contractors in terms of their insurance requirements.  For example, we can guide you to look through a couple of insurance companies, even using the experience of other contractors. This will give you a sense of how they work as a company. Are their financials robust? How is their coverage? What are their current ratings? Contractors Reporting Services also helps with regards to other Florida general contractor license requirements, especially in Tampa and surrounding areas.