Does a Contractor Need Liability Insurance?  

If you’re a contractor, you need liability insurance. If you don’t have it, you need to make sure your boss or the owner of the company you work for has it, so they can cover you.  

Liability insurance is important, as it will give you peace of mind that if something bad happens, you won’t be at fault and you will be covered. With liability insurance, you will likely find more jobs and be hired more often as many clients don’t want to work with a contractor who doesn’t carry insurance as too many problems could arise. 

Liability insurance helps protect business owners, contractors, and homeowners from liability related to on-job accidents, products, and other forms of liability like contractual liability. 

It is in your best interest to purchase contractor liability insurance as soon as you become licensed.  This insurance protects the contractor, the business, or the assets of the business when it’s being sued. With this insurance, a homeowner or business owner feels protected, and it shows your clients that you took measures to protect yourself and them. 

This type of insurance is important because claims against contractors happen and can be very expensive. You don’t want to pay this out of pocket! 

In order to get your contractor’s license in Florida, you must carry a minimum general liability insurance of $300,000 for bodily injury and $50,000 for property damage. In Florida, covered claims can include bodily injury, property damage, negligence, personal injury, general damages, compensatory damages, and damage from slander or false advertising. In Florida, most companies consider this insurance essential. By contacting the county that you’re working in, you can find out what insurance is required. 

What liability insurance should you purchase? Research different insurance companies and ask peer contractors what companies they’re using and why. Look at these company’s ratings. Make sure you receive proof of insurance from whichever insurance company you choose to go through. This certificate of insurance usually needs to be shown before you can start a job or needs to be at the job site. Ask the company for the original certificate and not a copy. 

 Protecting yourself as a contractor is important – you will save money and stress less.  

If you have questions about general liability insurance, looking to apply or renew your Florida contractor’s license or need help forming or running your business, our Florida contractor licensing  team  at Licenses Etc. can help make the process easier and faster. 

Please call us at 239-777-1028 to get help from us right away or click our Florida contractor license page to learn more.