Protect Your Florida Construction Business with General Liability Insurance
Part of our guide to general contractors insurance in Florida.
Experienced general contractors in Florida understand the importance of General Liability insurance. This coverage is the foundation of your business's protection, paying for third-party bodily injury, property damage, and advertising injury claims. You need General Liability to safeguard your business from unexpected events. In Florida's litigious environment, this coverage is crucial. General Liability insurance is not just a good idea; it's often a requirement for commercial clients, real estate developers, and lenders. You'll typically need to carry at least $1 million in General Liability and workers' compensation insurance to sign a construction contract.
General Liability cost for general contractors in Florida
Illustrative monthly general liability estimate for a small general contractor operation in Florida. Actual pricing depends on revenue, payroll, coverage limits, claims history, and carrier. Get a personalized quote to see your real price.
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What General Liability Covers for General Contractors in Florida
General Liability insurance pays for third-party bodily injury, property damage, and advertising injury claims. This coverage is essential for general contractors in Florida, where the risk of accidents and injuries is high. For example, if a client trips and falls on your construction site, General Liability insurance will cover their medical expenses and any resulting lawsuits. Similarly, if your construction equipment damages a neighboring property, General Liability insurance will pay for the damages. However, General Liability insurance does not cover workers' compensation claims, which are covered by a separate policy. You should also note that General Liability insurance does not cover commercial auto claims or professional liability claims, which require separate policies. In Florida's hurricane-prone environment, General Liability insurance can also help protect your business from storm-related claims.
Do General Contractors in Florida Need General Liability?
General Liability insurance is not legally required for general contractors in Florida, but it is often contractually required. Nearly every commercial client, real estate developer, and lender requires general contractors to carry at least $1 million in General Liability and workers' compensation insurance as a condition of signing a construction contract. Without General Liability insurance, you may not be able to secure contracts or work with major clients. Additionally, General Liability insurance can help protect your business from unexpected events, such as accidents or injuries on the job site. In Florida's litigious environment, General Liability insurance is crucial for protecting your business from third-party claims. You should also consider the potential consequences of not having General Liability insurance, including financial ruin and damage to your reputation. By carrying General Liability insurance, you can ensure that your business is protected and that you can continue to operate with confidence.
A Real General Liability Claim a General Contractor Could Face
Sunshine Construction was working on a project in Jacksonville when a passer-by was injured by a falling object from the construction site. The passer-by suffered serious injuries and filed a lawsuit against Sunshine Construction, seeking damages for medical expenses, lost wages, and pain and suffering. General Liability insurance covered the claim, paying out $500,000 to settle the lawsuit. Without General Liability insurance, Sunshine Construction would have been financially devastated by the claim. The business would have had to pay the damages out of pocket, which could have led to financial ruin. Instead, General Liability insurance protected Sunshine Construction's assets and allowed the business to continue operating. By carrying General Liability insurance, you can ensure that your business is protected from unexpected events like this one.
What General Liability Costs for General Contractors in Florida
The cost of General Liability insurance for general contractors in Florida varies depending on several factors, including revenue, payroll, coverage limits, deductible, and claims history. On average, general contractors in Florida can expect to pay between $45 and $125 per month for General Liability insurance. However, this estimate can vary significantly depending on your business's specific circumstances. For example, if you have a high revenue and payroll, your General Liability premium may be higher. Additionally, if you have a history of claims, your premium may be higher as well. You can lower your General Liability premium by maintaining a good claims history, increasing your deductible, and bundling your policies with a single insurer. It's also important to shop around and compare quotes from different insurers to ensure that you're getting the best rate for your General Liability insurance. In Florida's competitive market, you may be able to find a better deal by working with an independent insurance agent who can compare quotes from multiple insurers.
How to Get General Liability in Florida
To get General Liability insurance in Florida, you'll need to gather some information about your business, including your revenue, payroll, and coverage limits. You should also consider any contract requirements you may have, such as a minimum coverage limit of $1 million. Once you have this information, you can start comparing quotes from different insurers. It's a good idea to work with an independent insurance agent who can help you navigate the process and find the best rate for your General Liability insurance. In Tampa, for example, you may be able to find a better deal by working with a local agent who understands the market. When comparing quotes, be sure to consider the coverage limits, deductible, and premium, as well as the insurer's reputation and financial stability. By doing your research and comparing quotes, you can ensure that you're getting the best General Liability insurance for your business. To get started, have your revenue, payroll, and contract requirements ready, and compare General Liability quotes from different insurers.
Frequently asked questions
Will my General Liability premium jump after one claim?＋
Yes, it may. After a claim, your General Liability premium may increase, depending on the severity of the claim and your claims history. However, this increase can be mitigated by maintaining a good claims history and working with an insurer that offers competitive rates. You should also consider the potential consequences of not having General Liability insurance, including financial ruin and damage to your reputation.
Can I get a COI same-day for a client?＋
Yes, you can. Many insurers offer same-day certificates of insurance (COIs) for general contractors in Florida. This can be especially helpful if you need to provide proof of insurance to a client quickly. However, be sure to check with your insurer to confirm their COI processing times and requirements. You should also consider the potential consequences of not having a COI, including delayed or lost contracts.
Does a sole proprietor need General Liability?＋
Yes, they do. Even as a sole proprietor, you can still be held liable for accidents or injuries on the job site. General Liability insurance can help protect your personal assets and business from third-party claims. You should consider the potential consequences of not having General Liability insurance, including financial ruin and damage to your reputation. By carrying General Liability insurance, you can ensure that your business is protected and that you can continue to operate with confidence.
What's not covered by General Liability?＋
General Liability insurance does not cover workers' compensation claims, commercial auto claims, or professional liability claims. These types of claims require separate policies. You should consider the potential consequences of not having the right coverage, including financial ruin and damage to your reputation. By carrying the right insurance policies, you can ensure that your business is protected and that you can continue to operate with confidence.
Can I cancel my General Liability policy at any time?＋
Yes, you can. However, be sure to check your policy terms and conditions to understand any potential penalties or fees associated with cancellation. You should also consider the potential consequences of not having General Liability insurance, including financial ruin and damage to your reputation. By carrying General Liability insurance, you can ensure that your business is protected and that you can continue to operate with confidence.
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Other coverages general contractors in Florida should know
This article is for general educational purposes and is not insurance or legal advice. Coverage requirements and pricing in Florida change over time and vary by business. Verify current rules with the Florida Department of Insurance and a licensed agent before purchasing a policy.