General Liability Insurance and Your Florida Contractors License

Obtaining your Florida General Contractors License is an in-depth, but very straightforward process. As long as you meet the application and licensing requirements, little can stand in the way of you getting your business started. However, making sure that every single box is checked requires a complete and comprehensive knowledge of the requirements throughout the process. 

Having and Insurance Agent by your side that specializes in construction insurance can be a valuable asset.  When you are determining what coverage you need, and what you should cover, and agent that asks the right questions is a key partner to your success.   As your business grows, new risks will emerge, and having that relationship with an Agent can keep you covered.

Once you have passed your contractors exam, the process of compiling the necessary documentation begins. According to the Florida Department of Business and Professional Regulation, you must show documentation proving:

• A minimum of four years experience in a supervisory role within your specialized industry, or a combination of education and work experience;

• Financial stability and responsibility by submitting personal credit reports, which must include a FICO derived credit score and indicate that local, state and federal records have been searched. Additional information regarding financial requirements can be found on the Financial Responsibility and Stability website.

• 18 years of age

• Background Check and Fingerprints

• Payment of Fees

• Public (General) Liability ($300,000 for bodily injury) and Property Damage Insurance ($50,000)

Although these requirements are fairly standard, the insurance requirement continues to raise questions among applicants. Many wonder why the state of Florida mandates that contractors carry minimum limits and furthermore, why it is a requirement at all. To give a better explanation, here is what www.ehow.com has to say:

Liability-insurance policies offer protection against claims made by third parties for injury or bodily harm, property damage, negligence and loss of life or limb. By having general liability insurance, contractors provide blanket coverage for both product and public liability. This means that the policy covers indirect or direct actions of the insured contractor and his employees, which may result in damage or loss due to the fault in the product.

… The majority of business owners today can benefit from having general liability insurance, because it protects the business owner from lawsuits should something happen while on the job.

It can sometimes seem as though required limits are restrictive or demanding, but in the case of liability and property damage coverage, those limits are in place to keep contractors protected from bogus or frivolous lawsuits that could cause their business to crumble.

Premier Insurance Corp, Inc. has been assisting professionals in obtaining proper insurance coverage for Florida General Contractors Licensees.  We are passionate about the contracting industry and are diligent to stay up to date with state insurance and renewal requirements to give you the most accurate information possible.