Have you considered launching a Florida-based building firm? If so, you’ll need to fulfill a number of administrative and statutory procedures before you can start practicing legally. Obtaining a general contractor’s license is the first stage. Read on for additional details about the requirements and cost of Florida general contractor insurance.<\/p>
Florida general liability insurance shields a company’s assets in the event of a lawsuit over injuries sustained by a third party or damage to their property. More so, Florida contractor’s general liability insurance is meant to protect construction enterprises from claims originating from operations that result in damage to a third party. <\/p>
Furthermore, under a Florida general liability insurance contract or policy, the insurer will also pay for legal expenses in the event of a claim or lawsuit. Also, bodily injury, property damage, personal injury, and advertising harm (damage from slander or misleading advertising) are all examples of claims that may be covered. <\/p>
Also, the insurance provider covers compensatory and general damages. The requirements for Florida general liability insurance for contractors do not apply to punitive damages because they are considered to be punishment for willful acts. Small accidents often end in huge lawsuits in today’s litigious society. This is why contractors, more so than other business owners, need to get Florida general liability insurance as well as property and workers’ compensation insurance.<\/p>
The hazards of working on a construction site are well documented. Whether they are working on a commercial or residential project, small enterprises always run the risk of being held liable in the event of even a minor mishap. Florida businesses cannot afford to risk injuries, delays, accidents, or other problems typical of the construction sector without carrying contractor insurance. Contractor insurance is a catch-all phrase for a variety of policies that protect contractors, such as:<\/p>
Contractors in Florida can choose from a variety of insurance policies. These policies can help mitigate some of the dangers that contractors experience on the job.<\/p>
Anything may happen on a construction site. A simple oversight, like leaving equipment on the wrong side of the road, can have serious consequences for a business if an employee is hurt.<\/p>
Whether you know it as “slip and fall coverage” or “Commercial General Liability,” this insurance is there to defend your company in the event that it is sued for damages to a third party’s body or property. Also, if you’re a Florida contractor, purchasing general liability insurance can help protect your finances by covering the cost of legal representation and any necessary repairs or compensation.<\/p>
When working in the construction industry, things don’t always go as planned. Also, interruptions in the work or malfunctioning tools could make it impossible to finish the project on schedule.<\/p>
Protect your company against the everyday hazards it faces with the help of a Business Owner’s Policy (BOP). The BOP package provides numerous coverages that may suit the unique requirements of your small business. The specific types of insurance included in a BOP can vary, but they often cover the gamut of hazards faced by small businesses.<\/p>
BOPs can be modified to match the needs of your firm. This is a practical and inexpensive approach to protecting yourself from the wide variety of threats that contractors face.<\/p>
If an employee is sick or injured on the job, it is your responsibility to see that they are taken care of. Also, workers’ compensation insurance protects you against medical expenditures and litigation that can occur from employee workplace accidents and illnesses. Workers’ compensation may also cover wage loss if an employee is hurt on the job.<\/p>
Additionally, workers’ compensation insurance is mandatory in the state of Florida for most firms, including those in the construction industry. Employers with one or more employees, including business owners who are corporate officials or LLC members, must obtain workers’ compensation coverage.<\/p>
You and your company can be protected from several dangers if you invest in contractor insurance. Your insurance policy might protect you if you experience:<\/p>
The Florida Construction Industry Licensing Board is in charge of issuing all general contractor licenses in the state. General contractors in Florida need these requirements to have their insurance applications reviewed and approved by the relevant government agencies<\/a>.<\/p>
In establishing yourself as a contractor in Florida firstly, you need to register your firm. Standard entities (LLC, corporation, or partnership) in Florida must be registered with the Florida Divisions of Corporations. The Department of Revenue requires all small enterprises to register.<\/p>
In order to serve as a general contractor, your company needs to show proof of financial stability. One way to demonstrate that you have the means to carry out the services in question is to provide a personal and corporate credit score. A surety bond application is necessary if your credit score is below 660.<\/p>
Obtaining relevant job experience is mandatory for licensing. Also, to qualify for a license in the state of Florida, you must present evidence of four years of experience in the field.<\/p>
In addition, one of the four years must be managerial experience, and the remaining three can constitute an apprentice or college credit. More so, you should examine the rules for the particular license you want to earn to see if any additional experience is required.<\/p>
Your next step is to schedule and finish the Florida State Exam for Licensing. The test covers a wide range of topics relevant to being an effective general contractor. The exam is challenging, but it is possible to succeed if you put in the time to learn the content.<\/p>
To apply for a general contractor’s license in Florida, you’ll need to submit a huge array of personal and financial papers.<\/p>
Initial registration and licensing fees must be paid after the application has been submitted.<\/p>
Please provide evidence of insurance and a surety bond.<\/p>
To apply for a general contractor’s license in Florida, you must meet the following financial conditions:<\/p>
What’s needed, according to the board:<\/p>
If your FICO score is lower than 660, you may need to secure a surety bond. A surety bond is a form of security that guarantees your company will have the funds available to finish any given project. The required bond sum changes depending on the type of license you’re applying for. A surety bond in the amount of $20,000 is required to get a general contractor’s license valid for both commercial and residential work.<\/p>
Your firm is responsible for paying the bond’s premium. The amount you pay in premiums varies with your income level. Your premium will go down as your credit score goes up, and vice versa. A surety bond typically has a premium rate between 0.7 and 5 percent.<\/p>
Cheap construction insurance in Florida is what we specialize in here at Affordable Contractors Insurance. General liability insurance costs between $248 and $325 per month and up to $3,000 or more per year. The cost of contractor insurance in Florida may change depending on the coverage options you select. Contractors in Florida, for instance, may pay $41\u2013$65 monthly, or $500+ annually, for tool insurance.<\/p>
If you’re just starting out in a construction company in Florida, you might not be prepared for the high cost of insurance. Business insurance<\/a> prices vary because insurers take several things into consideration when setting a business premium. Your company’s expenses may change based on:<\/p>
Licensed general contractors in Florida must have liability insurance with limits of at least $300,000 per person injured and $50,000 per incident for property damage, or a $300,000 combined single-limit policy.<\/p>
In Florida, prospective general contractors must provide proof of general liability insurance and, if they plan to hire people, workers’ compensation insurance. Property damage insurance of $25,000 and $100,000 in public liability for any other contractors.<\/p>
Two of the most frequent types of insurance a construction company may need are general liability and builders’ risk. One explanation is that, especially for larger projects, clients often insist that contractors have both builders’ risk and general liability insurance.<\/p>
Every state establishes a time limit on how long a construction enterprise is accountable for alleged flaws. The statute of limitations for defect claims in Florida is four years from the day the problem was found (or should have been detected).<\/p>
If the value of the handyman jobs you do exceeds $2,500 or if you market yourself as a contractor in Florida, you must carry insurance. Find out first what kind of insurance is needed in your county.<\/p>
To do so lawfully in Florida, you must first obtain a contractor’s license from the state. The Florida Construction Licensing Board and the Florida Department of Business and Professional Regulation (DBPR) are the officials that approve or deny a potential licensee’s contractor license application.<\/p>