What contractors usually need
Contractors and trades carry a package of policies, because each one answers a different kind of loss. The mix depends on your trade, whether you hire employees or subcontractors, and what your contracts say.
- General liability. Pays for bodily injury and property damage your work causes to other people, plus legal defense costs. Ask specifically about completed operations coverage, which responds to claims that arrive after a job is finished. Florida’s Construction Industry Licensing Board requires certified and registered contractors to keep public liability and property damage insurance at minimum amounts set by rule, and contracts and landlords usually require general liability too.
- Workers’ compensation. Required in construction from the first employee. Corporate officers and LLC members count, and in construction a sole proprietor or partner is treated as an employee unless the state has approved an exemption. See our workers’ compensation guide.
- Commercial auto. Covers trucks, vans and trailers used in the business. A personal auto policy may not cover business use, so check before you assume it does.
- Tools and equipment. General liability does not pay to replace your own tools. Contractor’s equipment coverage, a form of inland marine insurance, can cover tools and equipment on job sites, in vehicles and in storage.
- Umbrella or excess liability. Raises your liability limits above general liability, auto and employer’s liability when a contract or a serious claim calls for more.
- Builders risk. Insures a structure while it is being built. Your contract decides whether the owner, the general contractor or you buy it.
- Professional and pollution liability. Worth asking about if you design or advise on the work, or if your trade handles regulated materials.
Licenses, permits and some contracts also call for bonds. A surety bond is separate from your insurance policies and works differently. If a job or license requires one, say so when you contact us.
What general contractors and owners ask to see
Most of the friction contractors run into is paperwork. These are the terms that come up most often in contracts and subcontract agreements:
| Contract wording | What it usually asks for |
|---|---|
| Certificate of insurance | A document showing your policies, limits and dates. It is evidence that coverage exists. It is not the policy and it does not add coverage. |
| Additional insured | An endorsement that gives the contractor or owner certain protection under your liability policy. The exact form matters, including whether it extends to work you have already completed. |
| Waiver of subrogation | Your insurer agrees not to pursue the other party to recover what it paid on a claim. |
| Primary and non-contributory | Your policy pays first, and the other party’s own policy does not share the loss. |
| Indemnification | You agree to cover certain costs of another party. Insurance responds to some of these promises and not to others, so read this clause closely. |
If a contract asks for something your policy does not provide, find out before the work starts, not after a claim.
Subcontractors: where the risk shows up
When you hire subcontractors, their insurance becomes your problem. For workers’ compensation, the Florida Division of Workers’ Compensation says contractors must make sure subcontractors have the required coverage before they begin work, and that if a subcontractor has none, its workers become the contractor’s employees. Some liability policies also add conditions or extra charges when your subcontractors are uninsured or do not name you as an additional insured.
A simple routine protects you:
- Collect a certificate of coverage, or a valid exemption, from every subcontractor before they start.
- Check the limits and the expiration date, and diary the renewal.
- Ask for additional insured status and a waiver of subrogation if your own contracts require you to pass them down.
- Keep the paperwork where you can find it. If a claim comes, it is the first thing anyone asks for.
Florida points that affect contractors
- Permits. To pull a building permit, an employer has to show the permit office proof of workers’ compensation coverage or a valid exemption. Check with your local building department for how it handles this.
- Trade and payroll classification. Insurers price by the type of work you do, and trades with more injury risk, such as roofing and work at height, typically cost more than finish trades. Honest, specific descriptions of your work protect you from a bad classification and from coverage disputes later.
- Hurricane season. The season runs from June 1 to November 30. Tools, trailers and materials stored outdoors, and projects underway when a storm hits, are worth a conversation before the season rather than during it.
- Employee or independent contractor? Calling someone an independent contractor does not make them one. Misclassification can mean unexpected workers’ compensation exposure. If you are unsure, ask an attorney.
What to have ready
- Your trade or trades, and roughly what share of revenue each one brings in.
- Annual revenue, payroll by type of work, and what you pay subcontractors.
- The number of employees, including officers, and any exemptions you hold.
- Vehicles used in the business, and the value of tools and equipment.
- Any contract language that sets insurance requirements, especially limits and additional insured wording.
- Your current policies, expiration dates and claims in the last five years if you have them.
You do not need everything to start. Tell us about your business and we will ask for the rest.
- Coverage Requirements, Florida Department of Financial Services, Division of Workers’ Compensation (construction threshold, subcontractor rules).
- Chapter 440, Florida Statutes (section 440.103, building permits and proof of coverage).
- Rule 61G4-15.003, Florida Administrative Code (insurance required of certified and registered contractors).
Last reviewed October 13, 2026. This page is general information. It is not legal advice and it is not an offer of coverage.