Compliance Is Part of Running a Construction Business in Florida
Operating a construction company in Florida means more than managing crews and meeting
deadlines you also need to meet strict insurance requirements. Failing to carry the right
coverage can result in fines, stop-work orders, lost contracts, or even license suspension.
The good news? Staying compliant doesn’t have to be complicated. Here’s a clear breakdown of
the mandatory insurance policies Florida construction business owners need and why they
matter.
Workers’ Compensation Insurance
When Workers’ Comp Is Mandatory in Florida
Florida law requires workers’ compensation insurance if:
● You have one or more employees (construction has stricter rules than most industries)
● Corporate officers are not formally exempted
● Day laborers or subcontractors you hire are not properly insured
What Workers’ Compensation Covers
● Employee medical expenses for work-related injuries
● Lost wages during recovery
● Employer liability protection if an employee files a lawsuit
Compliance note: Construction faces stricter enforcement than other industries. Even one
uninsured worker can expose your business to significant penalties—up to $1,000 per day of
non-compliance.
Smart compliance step: Request current workers’ comp certificates from all subcontractors
before they start work. Keep copies on file in case of an audit.
General Liability Insurance
Is General Liability Required by Law?
While Florida statute doesn’t mandate general liability insurance, it’s effectively mandatory
because:
● The Department of Business and Professional Regulation (DBPR) requires proof of
coverage for many contractor licenses
● Clients and project owners demand it before signing contracts
● Commercial projects, HOAs, and municipalities won’t issue permits without it
Why It’s Essential for Compliance
General liability insurance protects against:
● Third-party injuries at your job sites
● Property damage to client or neighboring properties
● Legal defense costs and settlements
Without it, your business may be legally exposed—even if workers’ compensation is in place.
Typical coverage requirements: Most contracts require $1M per occurrence / $2M aggregate
as a baseline, though larger projects often demand higher limits.
Commercial Auto Insurance (Required for Business Vehicles)
When Commercial Auto Is Mandatory
If your construction company uses vehicles for business purposes—trucks, vans, or even
personal vehicles regularly used for job sites—Florida law requires commercial auto insurance.
What It Covers
● Liability for accidents involving your business vehicles
● Property damage and bodily injury to third parties
● Optional physical damage coverage for your own vehicles
Important: Personal auto policies typically exclude business use. If you’re driving to a job site
with materials and have an accident, your personal insurer may deny the claim entirely.
Recommended limits: While Florida’s state minimums are $10,000/$10,000, contractors
should carry at least $500,000 to $1M in liability coverage for adequate protection.
Additional Coverages Often Required for Full Compliance
While not always legally mandated, many projects require:
Umbrella or Excess Liability Insurance
Provides higher liability limits when your general liability or auto policy limits are exhausted.
Often required for larger commercial contracts.
Professional Liability
Mandatory if you offer design-build services, consulting, or any work involving professional
advice.
Builder’s Risk Insurance
Required for many new construction projects, especially those involving construction loans or
large commercial developments.
Inland Marine (Tools & Equipment)
Not legally required, but critical if you have high-value equipment or work across multiple job
sites.
These policies help you stay compliant with contract requirements and protect your business
from gaps that general liability doesn’t cover.
Inland Marine
Not legally required, but critical if you have high-value equipment or work across multiple job
sites.
These policies help you stay compliant with contract requirements and protect your business
from gaps that general liability doesn’t cover.
The Real Cost of Non-Compliance in Florida
Forgetting mandatory coverage isn’t just about fines. It can mean:
● Stop-work orders that halt production and delay projects
● License suspension or revocation by the DBPR
● Personal liability for accidents and injuries
● Contract breaches that open you up to lawsuits from clients
● Inability to bid on new projects or secure bonding
Staying Compliant Without Overcomplicating Coverage
Compliance isn’t about buying every policy on the market—it’s about carrying the right
coverage, structured correctly, and aligned with Florida regulations and contract requirements.
At Brightcoast, we specialize in industry-specific solutions for construction companies across
Florida. We help you meet legal requirements, satisfy contract demands, and protect your
business with confidence.
Not sure if your insurance meets Florida compliance standards?
Brightcoast is here to make it clear. Let’s review your coverage and ensure your business is
protected, compliant, and ready to grow—without unnecessary complexity or cost.
Not sure if your insurance meets Florida compliance standards?
Brightcoast is here to make it clear. Let’s review your coverage and ensure your business is
protected, compliant, and ready to grow—without unnecessary complexity or cost.