General Liability Insurance Florida: Cost, Coverage & More

General Liability Insurance Florida
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General liability insurance, often known as business liability insurance, shields companies from legal action stemming from everyday activities. Protect yourself and your company from the financial fallout of physical injury claims, hospital costs, advertising damages, and more with commercial liability insurance. This article will explain general liability insurance in Florida, general liability insurance for small businesses in Florida, and their requirements.

General Liability Insurance Florida

Small businesses are the engine of Florida’s economy. In fact, 99.8 percent of the state’s businesses fell into this category. Small businesses employ 3.6 million Floridians, or over 41% of the state’s workforce.

Small business owners in Florida need appropriate insurance, like general liability insurance. General liability insurance (also known as commercial general liability, or CGL) is one of the most common and essential policies for small businesses and self-employed professionals.

With general liability insurance, you will be protected against a variety of risks your business confronts on a daily basis, such as property damage and injuries to third parties. This insurance is essential in the event of an unforeseen catastrophe, including:

  • In Fort Lauderdale, a passerby is injured when a roofing company’s ladder crashes over.
  • In Tampa, a painter spills his paint on a pricey sofa by mistake.

Instead of paying for these costs out of pocket, your general liability insurance will cover them up to the policy’s maximum. It also protects you if you need to defend yourself against libel or slander allegations.

Is General Liability Insurance Required by Law in Florida?

In Florida, there is no state law mandating general liability insurance. However, municipalities and counties throughout the state may require additional coverage. Every business owner in Florida should contact their local government office or city registrar to learn more about local insurance requirements.

Although there are no statewide requirements for general liability insurance in Florida, the majority of businesses still choose to carry it. When deciding what insurance coverage they require, Florida business proprietors should consider these potential benefits.

#1. Business Finances

General liability insurance protects your company financially in the event of customer or other third-party injuries, property damage, or slander or libel allegations. Furthermore, this sort of Florida company insurance may be required by some banks or lending organizations.

#2. Work Contracts

Some clients will not deal with you unless you provide proof of coverage in your contract. You may miss out on possible jobs if you do not have general liability insurance.

#3. Lease Agreement

If you need to rent a location for your company, commercial property contracts frequently demand commercial general liability insurance. Before agreeing to rent you a property in Florida, your landlord may even request a specified amount of coverage.

#4. Licenses and Permits

Certain business licenses and permits may need general liability coverage. For example, the Department of Business and Professional Regulation or the Department of Agriculture may include additional insurance coverage for particular licensing requirements.

NEXT provides a simple and cost-effective alternative for small enterprises to obtain general liability insurance. Business owners in Florida can finish the full procedure online in minutes. They also have insurance consultants in the United States who can address any questions you have concerning insurance coverage.

Begin by requesting a free online quote to learn more about Florida general liability insurance alternatives.

Read Also: IS FLORIDA A NO-FAULT STATE: What Does That Mean?

General Liability Insurance Florida Small Business

For financial and legal reasons, Florida business owners should consider various types of commercial insurance. Customer slips and falls, natural calamities, and employee injuries are all potential threats to your organization.

If you employ one or more of Florida’s 3.5 million small business employees, you must have general liability insurance and workers’ compensation insurance. Other types of coverage for your daily activities, commercial property, and electronic data should also be considered.

General liability insurance protects small businesses in Florida against common risks such as consumer property damage and injuries. This policy is frequently required in commercial leases.

Why Do You Need General Liability Insurance?

Any company in Florida that interacts with people outside of the corporation should consider purchasing commercial general liability insurance (CGL). It is frequently the first insurance policy that small business owners purchase.

Any business owner, consultant, or contractor that works with the public, either directly or indirectly, should consider purchasing general liability insurance. The more contact you have with customers, the greater your danger of being sued.

You’re covered for lawsuits including slip-and-fall injuries, customer property damage, advertising injuries, and more with this coverage. When you purchase general liability insurance, you can rest assured that these lawsuits will not derail your business or your money.

When renting or purchasing an office, your landlord or lender may require general liability insurance. Client contracts may also necessitate the implementation of this policy. Your consumers, landlords, and lenders should rest easy knowing that your company can bear the costs of legal action. It also gives you a competitive advantage over competitors who are not insured.

What Does General Liability Insurance Cover?

General liability insurance protects your small business from typical claims that might bankrupt it. This policy specifically protects your company when someone outside your company sues over:

#1. Bodily Injury

A lawsuit could be filed if a customer is injured while visiting your establishment. For example, if a customer suffers a slip-and-fall injury at your computer repair shop and decides to sue, general liability insurance would cover medical expenses as well as legal defense costs.

#2. Property Damage

Small enterprises that handle customer property or work in clients’ homes are prone to property damage claims. For example, if an employee at your cybersecurity firm accidentally damages a person’s property, such as their laptop, general liability insurance can cover the cost of a replacement as well as any legal fees if the person sues.

If a business organization, such as a limited liability company (LLC) or a startup, uses images or music in its advertising, it may be sued for copyright infringement if it uses someone else’s work. You may also be accused of stealing the name or logo of another company. Your general liability policy will cover this as long as it is accidental.

#4. Defamation, Such as Libel or Slander

Any firm or freelancer who interacts with others, from sarcastic social media posts to a harsh word at a networking tech event, is exposed to defamation lawsuits. General liability insurance covers actions involving both written and spoken defamation (libel and slander).

#5. Product Liability Insurance

Most general liability policies offer product liability insurance as a standard or as an optional supplement. This coverage covers financial damages resulting from product harm, such as a consumer suing you for migraines induced by your app development company’s meditation app.

Read Also: Workers Compensation Insurance Florida: The Ultimate Guide

Florida General Liability Insurance Requirements

Florida is home to the Everglades, Disney World, the Everglades National Park, the Jaguars, the Dolphins, the Buccaneers, and some of the most beautiful beaches in the world at the Kennedy Space Center in the Florida Keys. There are 3 million small companies in Florida. 

We know it can be challenging and time-consuming to shop around for the right Florida commercial insurance policy. It can be confusing to figure out what is necessary and what isn’t. Our goal is to make things easier for you. 

Do Florida Law Requirements Include That a Company Should Have General Liability Insurance?

In this section, we go over the requirements and two types of general liability insurance that business owners must obtain.

#1. Workers’ Compensation Insurance

Insurance for workers’ compensation is required by law in Florida for:

  • If you have more than four workers, you must provide them with workers’ compensation. 
  • Workers’ compensation insurance is a legal requirement for any construction business with one or more employees.
  • Workers’ compensation is a legal requirement in the construction industry, and general contractors are responsible for making sure all subcontractors and their employees are covered. 
  • Employers from outside Florida who send employees there must give them workers’ compensation insurance (from a company with a Florida state license).

Therefore, what purpose does workers’ compensation serve? The insurance will help pay for a worker’s medical care if they sustain an injury or illness on the job. When an employee is injured on the job, workers’ compensation may pay for some or all of their missed wages while they recover.

#2. Commercial Auto Insurance

Vehicles used in business must have commercial auto insurance in Florida. Businesses in the state must have at least $10,000 in liability insurance and $10,000 in PIP insurance to comply with state law. If you plan on using your own car for company business, you should definitely look into commercial auto insurance. Why? Standard plans might not be able to cover accidents involving personal vehicles that happen during business hours.

When Do Small Businesses Need General Liability Insurance?

Most small business owners buy general liability insurance shortly after starting their company. The following situations motivate business owners to obtain this policy:

  • Obtaining a professional license. To practice in the United States, real estate agents, dentists, and accountants must have a license. General liability insurance may be required as part of the licensing process.
  • Contracting with larger corporations. This policy may be required by a corporation that employs a general contractor, engineer, or landscaper to finish a portion of a bigger project.
  • Signing a lease for an office space. To meet lease requirements, an architect, electrician, or other professional who rents an office or workplace may need to purchase general liability insurance.

What’s Required of Small Businesses Applying for General Liability Insurance?

When registering for general liability insurance, your company must supply information such as revenue, personnel count, and claims history, among other things. The level of risk in your organization, as well as whether or not it has filed a claim in the past, determine how easy it is to receive a quote and how much you’ll pay for a premium. Even if your firm has a history of filing claims or operates in a high-risk industry, Insureon can most likely assist you in finding insurance.

What Is General Liability Insurance in Florida?

General liability insurance is also known as commercial general liability insurance and company liability insurance. This insurance covers your small business against claims of physical harm or property damage.

How Much Is General Liability Insurance in Florida?

A typical small business in Florida should expect to pay between $300 and $5,000 per year for general liability insurance. The final cost of liability coverage will differ dramatically from one business to the next based on the SIC code or the insurance company’s own classification scheme for the GL rating.

Is General Liability Insurance Required in Florida?

In Florida, there is no state statute that requires general liability insurance. However, supplementary insurance may be required in towns and counties throughout the state. To learn more about local business insurance regulations, all Florida business owners can contact their local government offices or city clerks.

What Is the Minimum Limit of Liability Insurance in Florida?

To drive in Florida, you must have the following minimum vehicle insurance coverage: Liability insurance for $10,000 in property damage Personal injury protection, or PIP, is insurance worth $10,000.

What Does General Liability Insurance Cover?

General liability insurance policies often cover you and your business for bodily injury and property damage claims arising from your products, services, or operations. It could also shield you from liability in the event that you cause damage to your landlord’s property

Is General Liability Worth It?

The cost of general liability insurance is quite low for the amount of protection it provides. General liability insurance coverage is required to safeguard against the potentially crippling costs of a lawsuit involving personal injury or property damage. Every business runs the risk of having a customer fall and sustain an injury.

What Is General Liability Insurance and Why Do You Need It?

In the event that your business is sued, general liability insurance will pay for defense costs, damages, and settlements up to the policy limit. Even if your company is well-run, accidents might still occur. Let’s say a consumer suffers an injury because of a wet floor.


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