Running a contracting business in Southwest Florida means dealing with a lot of moving parts. Between job sites, subcontractors, equipment, and vehicles, the risks are constant. One accident, one injury, or one property damage claim can put your entire business at risk if you don’t have the right contractors insurance in Southwest Florida.
At Bassine Insurance Agency in Fort Myers, we work with contractors across Lee, Collier, and Charlotte counties to build insurance programs that meet state requirements and protect against real-world risks. Here’s what every Southwest Florida contractor needs to know about their insurance obligations.
General Liability Insurance for Contractors
General liability is the foundation of every contractor’s insurance program. It covers third-party claims for bodily injury and property damage that happen during the course of your work.
- If a homeowner trips over your equipment at a job site and gets injured, general liability covers their medical bills and any resulting lawsuit.
- If your crew accidentally damages a client’s property during a renovation, general liability pays for the repairs.
- Most general contractors and project managers require their subcontractors to carry general liability before they can work on a project.
In Southwest Florida, general liability limits of at least $1 million per occurrence and $2 million aggregate are standard. Some commercial projects and government contracts require higher limits. We can tailor your policy to meet specific project requirements.
Workers Compensation Insurance
Florida law requires contractors in the construction industry to carry workers compensation insurance if they have one or more employees. This applies to all construction trades including general contractors, electricians, plumbers, roofers, and HVAC technicians.
- Workers comp covers medical expenses and lost wages for employees who are injured on the job.
- It also provides death benefits to the families of workers killed in workplace accidents.
- Sole proprietors and corporate officers in the construction industry can exempt themselves from workers comp coverage by filing an exemption with the state. However, going without workers comp carries significant personal risk.
Working without workers comp in Florida’s construction industry is not just risky, it’s illegal if you have employees. The penalties include stop-work orders, fines of $1,000 per day, and personal liability for any employee injuries. We help contractors stay compliant while keeping their premiums manageable.
Commercial Auto Insurance
If you use vehicles for your contracting business, whether it’s a work truck, van, or trailer, you need commercial auto insurance. Personal auto policies typically exclude coverage when a vehicle is being used for business purposes.
- Commercial auto covers liability for accidents caused by your business vehicles.
- It also covers physical damage to your vehicles, including collision and comprehensive coverage.
- Hired and non-owned auto coverage protects you when employees use their personal vehicles for work-related tasks.
Southwest Florida contractors often drive between job sites across Fort Myers, Cape Coral, Naples, and Bonita Springs. Having proper commercial auto coverage ensures you’re protected no matter where the work takes you.
Inland Marine and Tools Coverage
Your tools and equipment are your livelihood. Inland marine insurance, sometimes called a tools and equipment floater, covers your business equipment whether it’s at a job site, in your truck, or in storage.
- Covers theft, vandalism, and accidental damage to tools and equipment.
- Protects equipment while it’s being transported between locations.
- Can include coverage for rented or borrowed equipment.
We’ve seen too many Southwest Florida contractors lose thousands of dollars in tools to theft from job sites or vehicles. An inland marine policy is affordable insurance against a costly and common problem.
Additional Coverage Options for Contractors
Depending on the type of work you do and the size of your operation, you may benefit from additional coverage types.
- Professional liability or errors and omissions insurance covers claims of faulty workmanship or design errors.
- Umbrella insurance provides additional liability limits above your general liability and auto policies.
- Builder’s risk insurance covers structures under construction against damage from fire, wind, theft, and other perils.
- Surety bonds are often required for public projects and demonstrate your financial reliability to project owners.
Every contracting business is different, and cookie-cutter policies rarely provide adequate protection. We build custom insurance programs based on your specific trade, crew size, revenue, and the types of projects you take on.
For more information, you may find these resources helpful: Florida Division of Workers Compensation and SBA business insurance guide.
Frequently Asked Questions
What insurance does a contractor need in Florida?
At minimum, Florida contractors need general liability insurance and workers compensation insurance if they have employees. Commercial auto insurance is also essential if you use vehicles for business. Many projects require additional coverage like builder’s risk or professional liability.
How much does contractors insurance cost in Southwest Florida?
Costs vary based on your trade, payroll size, claims history, and coverage limits. A small subcontractor might pay $2,000 to $5,000 per year, while a larger general contractor with employees could pay significantly more. We compare quotes from multiple carriers to find the best rate.
Do sole proprietors need workers comp in Florida?
Sole proprietors in the construction industry can file for an exemption from workers comp requirements. However, this means you won’t have coverage if you’re injured on the job, and some general contractors won’t hire you without a workers comp policy in place.
Protecting your contracting business starts with the right insurance program. Whether you’re a one-person operation or a growing company with multiple crews, Bassine Insurance Agency in Fort Myers can help you build coverage that meets state requirements and keeps your business protected. Call us at (239) 995-0333 or request a free quote.
