New Contractors Insurance in Florida

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What do you need to get licensed? If you are a new or recently licensed contractor in Florida , or are relatively new to purchasing insurance for your company this will provide a bit more information about what you need, and why: In short, The State of Florida requires you to have at least a General Liability policy in the amounts of $300,000 for bodily injury and $50,000 for property damage for both General and Building Contractors and $100,000 for bodily injury and $25,000 for property damage for all other categories. The first thing that you will discover in your search is that it is relatively hard to find quotes for these exact dollar amounts. Most carriers will quote a minimum limit $500,000 per occurrence and $1,000,000 general aggregate. The good news here is that these limits exceed the states requirements and the premium charged is usually almost the same even for the higher limits. In today’s litigious environment extra protection is never a bad thing. If you are mostly having issues with the state, check out our page here for some extra help. If you need exam help, try here. The state has come out with a new License Bond requirement for contractors with a sub 660 credit score, effective July 2012. Read here to determine if you need one. We have a License Bond estimated rate table here. Go here if you want a quote for one. Go here to learn LEGAL tips on improving your credit score fast.

What insurance question should you always ask?

A critical fact to uncover is whether the policy you purchase has coverage for Completed Operations on the JOB SITE! Many reputable insurance companies will happily sell a contractor insurance that only covers your operation while you are on at the job site. However once you reach substantial completion or demobilize, the coverage ceases. This is a VERY common exclusion. This can also be a very bad thing if something goes wrong with the work, and the owner, GC, or anyone else attempt to file a claim against you. This coverage may increase the annual premium by $100 for a small handyman to a bit more for a large commercial contractor. The important thing is that typically most claims occur AFTER the job is complete. Why save $100 when “Completed Operations” is exactly what you hope you have coverage for? Also be sure to look for these other exclusions. Depending on the type of work you perform, they can either be a non-issue or a critical deal-breaker. Also beware of anything under $600! Too good to be true means…

Lastly

Lastly, if you are performing any work such as demolition, highway construction, or using explosives, you will need to speak with an agent personally. Depending on the scope, project owner, and/or contractors involved such as SKANSKA you may have special requirements.

Beware of Audits:

The insurance company wants you to be honest about your payroll and revenue forecast. They may perform an Audit at the end of the policy (usually) to make sure that you did not grossly underestimate your payroll or revenues. If you have only one employee – YOU – then this is less of an issue. The good news here is that if you overestimated, they may give you money back! Learn more here.

If you would like us to perform a more through analysis of your operation you can either fill out an application or drop us a line at Construction Pros and will be happy to help.