Contractor Insurance in Florida: Licensing Requirements, COIs and Coverage

Construction keeps growing across Polk County, from new subdivisions to commercial and warehouse work, and every job comes with insurance paperwork. The licensing board wants an affidavit, the general contractor wants a certificate, the building department wants proof of workers’ comp, and the homeowner wants to know you’re covered.

This guide sorts out what Florida law requires of contractors as of October 2026, what a certificate of insurance does and doesn’t prove, and which policies most trades end up carrying.

What insurance does Florida require to get a contractor license?

To get or renew a state certification or registration, a contractor must attest that they carry workers’ compensation as required by Chapter 440, plus public liability and property damage insurance in amounts set by the Construction Industry Licensing Board. That’s section 489.115(5), Florida Statutes.

The board sets the amounts in Rule 61G4-15.003, Florida Administrative Code:

License type	Public liability	Property damage
General contractor	$300,000	$50,000
Building contractor	$300,000	$50,000
Residential contractor	$100,000	$25,000
Roofing, plumbing, air conditioning, mechanical, sheet metal	$100,000	$25,000
Pool, solar, underground utility and excavation, pollutant storage	$100,000	$25,000
Specialty contractors (unless specified otherwise)	$100,000	$25,000

The rule applies to both certified contractors (statewide license) and registered contractors (local competency), and it requires the coverage to stay in force for the life of an active license. Letting it lapse is a rule violation even if no claim happens. Electrical and alarm contractors are licensed under a different part of Chapter 489 by a separate board, so check that board’s rules if you’re in those trades.

How DBPR verifies it

The board audits a random sample of licensees by ZIP code. If you’re selected, you have 30 days from the board’s request to send proof of coverage. The rule lists what that certificate must show, including:

• The exact name of the business organization you qualify, plus any d/b/a name.
• The insurance company, policy number, and effective and expiration dates.
• The agent’s name and signature, and your license number.
• The Construction Industry Licensing Board as certificate holder, with 30 days’ notice to the board if coverage is cancelled.

The name match is where contractors most often get caught. If your license qualifies “Smith Roofing LLC,” a policy issued to “John Smith” may not satisfy the audit.

Licensing minimums aren’t contract minimums

The state’s numbers are a floor for holding a license. General contractors, commercial property owners and public agencies often write higher limits into the subcontract, along with requirements such as additional insured status or waiver of subrogation. Read the insurance section of a contract before you sign it, and send it to your agent so the policy can be matched to it.

Do Florida contractors need workers’ compensation?

In most cases, yes. A construction employer with one or more employees must carry workers’ comp, and owners who are corporate officers or LLC members count unless they hold an exemption.

Up to three officers of a construction corporation, or of a group of affiliated companies, can apply to the Department of Financial Services (DFS) for an exemption if each owns at least 10 percent. The application fee is $50 and the certificate lasts two years. Our full guide to Florida workers’ compensation requirements covers the thresholds, the exemption process and stop-work orders.

Two rules matter on every job:

1. Permits. Under section 440.103, every employer applying for a building permit must show proof of workers’ comp, either a certificate of coverage from the carrier or a valid DFS exemption certificate.
2. Subcontractors. Under section 440.10, a contractor is responsible for coverage on the workers of any subcontractor who doesn’t have its own, and must collect evidence of the sub’s coverage or a copy of the officer’s exemption certificate.

If you pay a sub who has neither, expect that payroll to be added to your own policy at audit. DFS’s Construction Policy Tracking database can notify you when a contractor you use has a change in coverage status.

What is a certificate of insurance, and what isn’t it?

A certificate of insurance (COI) is a one-page summary of the policies you carry on the date it’s issued. It’s proof that coverage existed when it was printed, not a promise it will stay in force, and it doesn’t change the policy.

The standard certificate form most agencies use says so at the top: it is issued as a matter of information only and confers no rights on the certificate holder. That distinction drives how COI requests work.

Request	What it really means	Where it comes from
Certificate holder	The party receiving the certificate, such as a GC, property manager or homeowner	Your agent issues the certificate
Additional insured	The party gets coverage under your general liability policy for claims arising from your work	An endorsement added by the carrier, either blanket or naming the party
Waiver of subrogation	Your carrier agrees not to pursue the other party to recover a claim it paid	An endorsement on the policy
Primary and non-contributory	Your policy pays before the other party’s own insurance	Policy or endorsement wording
Notice of cancellation	The holder asks to be told if coverage is cancelled	Policy terms or an endorsement; ask your agent how the carrier handles it

If a contract asks for additional insured status, the certificate should reference an endorsement that’s actually on the policy. Many contractor policies include a blanket additional insured endorsement that applies when a written contract requires it, but forms vary by carrier, so confirm before the job starts.

What general liability covers for contractors

Commercial general liability (CGL) responds when your work causes bodily injury or property damage to someone else: a visitor trips over materials, a ladder falls through a client’s window, or water from a plumbing job damages a finished ceiling. It also typically covers your legal defense for covered claims.

It is not a warranty on your workmanship. Policies generally exclude the cost of redoing your own faulty work, while damage that faulty work causes to other property may be covered depending on the policy wording. Other common gaps to ask about include:

• Work in certain trades or on certain building types that the policy excludes by endorsement.
• Damage to property in your care, custody or control.
• Professional design services, which usually need errors and omissions coverage.
• Your own tools, equipment and vehicles, covered below.

Compare general liability options with an agent who reads the exclusion endorsements, not just the limits page.

Tools, equipment and work trucks

General liability doesn’t insure your own property. Most contractors pair it with two more policies.

Inland marine for tools and equipment

Inland marine coverage, sold as contractor’s equipment or a tool floater, insures tools, trailers and equipment that move from site to site. You schedule larger items individually and can usually add a blanket limit for smaller hand tools. Theft from job sites and trucks is the most common claim, so ask how the policy handles unattended vehicles and overnight storage.

If you build or renovate structures, builder’s risk coverage insures the project itself while it’s under construction. Who buys it is usually set in the contract.

Commercial auto for work vehicles

Many personal auto policies exclude or limit coverage for vehicles used mainly for business, titled to a business, or above certain weight classes. A truck titled to your LLC, carrying ladders and employees between job sites, is usually a commercial auto risk. Our guide to commercial auto insurance in Florida explains the state’s weight-based liability minimums and hired and non-owned auto coverage.

What to have ready before you request a quote

Gather these before you talk with an agent:

1. Your DBPR license number and type, and the exact business name the license qualifies.
2. A description of the work you do, including residential vs. commercial and any roofing, structural or height work.
3. Annual revenue and payroll estimates, split by type of work, and what you pay subcontractors.
4. Officer or member names, ownership percentages and any current DFS exemption certificates.
5. A list of tools and equipment worth insuring, with approximate values, plus vehicles with VINs and drivers.
6. Sample contracts or insurance requirements from your regular GCs or clients.
7. Five years of loss runs from prior carriers, if you’ve been insured before.

New to contracting? Our new business startup insurance page lays out the first policies most new companies set up, and you can request a contractor quote online. Workers’ comp can be quoted at the same time through our workers’ compensation page.