Protect Your Florida General Contracting Business with Professional Liability (E&O) Insurance
Part of our guide to general contractors insurance in Florida.
You just lost a lawsuit for $250,000 due to a claim of negligence on a construction project in Jacksonville. A Professional Liability (E&O) policy would have covered this claim. In Florida, general contractors face unique risks, including hurricane season and a high rate of litigation. Professional Liability (E&O) insurance, also known as Errors & Omissions insurance, covers claims of negligence, mistakes, or failure to deliver professional services as promised. This type of insurance is crucial for general contractors in Florida, as it can help protect their business from financial losses due to such claims. Without Professional Liability (E&O) insurance, you may be personally responsible for paying damages, which can be devastating to your business.
Professional Liability (E&O) cost for general contractors in Florida
Illustrative monthly professional 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 Professional Liability (E&O) Covers for General Contractors in Florida
Professional Liability (E&O) insurance covers claims of negligence, mistakes, or failure to deliver professional services as promised. This includes claims of faulty workmanship, delays, or failure to meet project specifications. For example, if a client alleges that your company's work on a construction project in Tampa was negligent, resulting in significant financial losses, Professional Liability (E&O) insurance would cover the claim. On the other hand, Professional Liability (E&O) insurance does not cover physical damage to property or bodily injury, which would be covered by general liability insurance. In Florida, general contractors face unique risks, including hurricane season and a high rate of litigation, making Professional Liability (E&O) insurance even more critical.
Do General Contractors in Florida Need Professional Liability (E&O)?
While Professional Liability (E&O) insurance is not legally required for general contractors in Florida, it is highly recommended. 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, and often also requires Professional Liability (E&O) insurance. In fact, many clients in cities like Orlando and Miami will not hire a general contractor without Professional Liability (E&O) insurance. Without this insurance, you may be personally responsible for paying damages, which can be devastating to your business. Furthermore, Professional Liability (E&O) insurance can help protect your business from financial losses due to negligence claims, and can also help you comply with client requirements. By carrying Professional Liability (E&O) insurance, you can demonstrate your commitment to quality and professionalism, and increase your chances of winning contracts. In addition, Professional Liability (E&O) insurance can also help you protect your business from the risks associated with hurricane season and the high rate of litigation in Florida.
A Real Professional Liability (E&O) Claim a General Contractor Could Face
A general contractor in Jacksonville was sued for $200,000 due to a claim of negligence on a construction project. The client alleged that the contractor's work was faulty, resulting in significant financial losses. The contractor had not carried Professional Liability (E&O) insurance, and was therefore personally responsible for paying the damages. If the contractor had carried Professional Liability (E&O) insurance, the policy would have covered the claim, and the contractor would have avoided significant financial losses. In this case, the contractor's failure to carry Professional Liability (E&O) insurance resulted in significant financial losses, which could have been avoided with the right coverage. The contractor's business was severely impacted, and the contractor's reputation was damaged. By carrying Professional Liability (E&O) insurance, general contractors in Florida can protect their business from similar risks and ensure compliance with client requirements.
What Professional Liability (E&O) Costs for General Contractors in Florida
The cost of Professional Liability (E&O) insurance for general contractors in Florida varies, but estimates range from $35 to $105 per month. The cost of the policy depends on several factors, including the contractor's revenue, payroll, coverage limits, deductible, and claims history. For example, a general contractor with a high revenue and a large payroll may pay more for Professional Liability (E&O) insurance than a smaller contractor. Additionally, contractors who have made claims in the past may pay more for their policy than those who have not. In Florida, the cost of Professional Liability (E&O) insurance may also be affected by the state's unique risks, such as hurricane season and the high rate of litigation. By understanding the factors that affect the cost of Professional Liability (E&O) insurance, general contractors in Florida can make informed decisions about their coverage and ensure they are getting the best value for their money. Furthermore, general contractors can also take steps to lower their premium, such as implementing risk management strategies and maintaining a good claims history.
How to Get Professional Liability (E&O) in Florida
To get Professional Liability (E&O) insurance in Florida, you should start by gathering information about your business, including your revenue, payroll, and coverage needs. You should also research different insurance providers and compare their policies and rates. In cities like Tampa and Miami, you can find insurance agents who specialize in Professional Liability (E&O) insurance for general contractors. By working with the right agent, you can ensure you get the right coverage for your business and comply with client requirements. Additionally, you should also ask about the policy's coverage limits, deductible, and claims history, to ensure you understand what is covered and what is not. By taking the time to research and compare different policies, you can find the best Professional Liability (E&O) insurance for your business and protect your assets from negligence claims. For a small fraction of your monthly revenue, you can protect your business from significant financial losses due to negligence claims, so see your rate today.
Frequently asked questions
Will my Professional Liability (E&O) premium jump after one claim?＋
Yes. After a claim, your premium may increase. However, the amount of the increase will depend on several factors, including the severity of the claim and your claims history. Additionally, some insurance providers offer premium forgiveness or other incentives for policyholders who have a good claims history.
Can I get a COI same-day for a client?＋
Yes. Many insurance providers offer same-day COI issuance for general contractors in Florida. However, this may depend on the complexity of the policy and the provider's underwriting requirements. Additionally, some insurance providers offer online portals or other tools to help you get your COI faster.
Does a sole proprietor need Professional Liability (E&O)?＋
Yes. Even as a sole proprietor, you can still be held personally responsible for negligence claims. Professional Liability (E&O) insurance can help protect your personal assets from such claims. In fact, many clients in Florida require sole proprietors to carry Professional Liability (E&O) insurance as a condition of doing business. By carrying this insurance, you can demonstrate your commitment to quality and professionalism, and increase your chances of winning contracts.
What's not covered by Professional Liability (E&O) insurance?＋
Professional Liability (E&O) insurance does not cover physical damage to property or bodily injury, which would be covered by general liability insurance. It also does not cover intentional acts or criminal behavior. Additionally, Professional Liability (E&O) insurance may not cover claims related to asbestos, lead, or other environmental hazards.
Can I cancel my Professional Liability (E&O) policy at any time?＋
Yes. You can typically cancel your Professional Liability (E&O) policy at any time, but you may be subject to a penalty or fee. Additionally, you should also consider the potential risks of canceling your policy, including the loss of coverage for ongoing projects. It's recommended to work with an experienced insurance agent who can help you navigate the cancellation process and ensure you have the right coverage for your business.
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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.