Business Insurance in Florida (FL): What You Need

Which insurance policies are popular in Florida?

The only small business insurance that is governed by state law is workers’ compensation insurance. There are rules and regulations that outline when employers must purchase a workers’ compensation policy in Florida which apply from Jacksonville to Miami. State law also requires auto insurance for owners of business and personal vehicles to operate on public roads. The FL Department of Professional Regulation also requires that certain professionals have insurance to obtain a license. Besides state law, many local cities and counties have their own insurance requirements to do business in their locale.

Workers' Compensation Insurance

The state of Florida requires workers' compensation insurance for businesses with four or more employees, regardless of whether they are full-time or part-time. Businesses with one employee or more are required to have a workers' compensation policy in the construction industry. This policy covers employee injuries and pays for all medical care costs, prescriptions, and a percentage of lost wages during the recovery period.

Commercial Auto Insurance

Commercial auto insurance is required for all vehicles owned by businesses and individuals in Florida. In an at-fault accident, auto insurance covers liability for third-party injury and property damage. You can also insure your vehicle for physical damage, and other coverage options are available. In Florida, you are required to carry the following minimum liability coverage:

• $10,000 property damage liability per occurrence.
• $10,000 personal injury protection (PIP)

State required auto liability insurance limits for truckers, taxis, and other industries are different.

It is helpful to have hired and non-owned auto liability (HNOA) for excess auto liability limits for accidents involving leased, rented, employee owned, or other non-owned vehicles used for the business’s operations. This insurance is available as an add-on to an auto policy or a general liability policy if a business has no business auto policy.

Other Types of Florida Business Insurance

Florida small businesses may need to purchase additional coverage. Coverage for buildings, signs, inventory, office equipment, and other business property is a good idea.

A Business Owner's Policy (BOP) is a good place to start. It covers general liability and commercial property, as well as loss of business income. It is less expensive than buying each coverage separately. Here's what's covered.

When your business occupied building is damaged by a covered peril that forces the business to close, such as a fire or wind from a hurricane, business interruption insurance pays you for your lost income and can include extra expense coverage with can pay for a temporary location to resume operations while your building is repaired.

Your small business needs commercial property insurance to protect its physical assets from theft and fire. Commercial property insurance covers furniture, tools, equipment, business records, and inventory.

A BOP can be added to with additional coverage as needed. You should also consider:

Builder's Risk Policy

A Builder's Risk Policy insures buildings under construction. There are coverage sub-limits included for soft costs, material at the jobsite, material in transit, and the structure’s completed value on completion. These policies can be issued in the name of the developer, general contractor, and owner, or a combination of these interested parties.

Business Auto Policy (BAP)

A Business Auto Policy (BAP) will cover business owned vehicles, whether private passenger vehicles, pickup trucks, vans, box trucks or semi-trucks. Personal auto insurance policies are not meant to cover business owned vehicles.

Umbrella or Excess Liability

These policies provide an additional layer of protection over most of your liability policies including general, auto and employer liability (Umbrella) or just over one or two liability policies (Excess). When the underlying limits on scheduled policies are exhausted, these policies will provide additional coverage up to the limits purchased.

Cyber Liability Insurance

Cyber Liability Insurance covers cyber-attacks and data breaches. An insurance policy for cyber liability pays for expenses such as investigation services, data recovery, and legal fees.

Directors’ and Officers’ liability (D&O)

This insurance covers a company’s directors, officers, and board members for wrongful acts and decisions made that incur liability for themselves and the entity.

Inland Marine insurance

Inland Marine insurance covers property in transit or away from a business’s premises. Mobile equipment, inventory shipped, a wide range of items can be covered under this policy. Inland marine insurance covers loss or damage to your mobile assets by the covered perils in the policy.

Medical Malpractice insurance

Medical Malpractice insurance sometimes is called Professional Liability but is different for those businesses in the medical field. This policy covers bodily injury or death caused by professional services. Doctors, surgeons, anesthesiologists, dentists, ophthalmologists, nurses, psychiatrists, and therapists are among the many medical professionals who need malpractice insurance.

General Liability insurance

General Liability insurance is the most common insurance coverage for businesses. It includes two types of coverage, premises liability and products and completed operations liability. The premises coverage applies at your business location, whether you have a retail outlet or your business entails working at your client’s location performing a service. Both of these would be considered your premises. The product and completed operations coverage applies either after the purchase of a product by your customer, or in the contractor scenario after the job is done. When your product or service causes property damage or bodily injury after the sale or job completion, this is the product and completed operations coverage in the general liability policy.

Professional Liability (Errors and Omissions Insurance)

Professional Liability, also known as errors and omissions insurance for non-medical professionals whether you own a technology business, architectural firm or accounting practice, this coverage protects you and your company from customer claims or allegations that your professional service caused them a financial loss. Even if you’ve done nothing wrong, lawsuits can be file and this policy will provide your business with legal protection for covered incidents.

Also, Read: How Much Does Commercial Flood Insurance Cost?

What is the cost of business insurance in Florida?

In Florida, small business insurance costs vary. Each business faces different risks due to its uniqueness. When determining costs, insurance companies consider a variety of factors. Examples of this include:

Annual revenue, physical location, annual payroll, business asset values, type of coverage, limits and deductibles. A business in Miami will have different rates than a business in Tallahassee. Just as property insurance premiums are higher the nearer to the coast due to hurricane exposure versus those business in the middle of the state. Overall, FL property premiums are some of the highest in the continental US.

The type of work you do, however, is the most influential factor. A profession is typically rated based on its unique exposure to risk. Coverage for high-risk businesses is more expensive than insurance for low- risk industries. It also depends on the line of business while the workers compensation may be expensive for roofers, the general liability may not be.

Curious about what your business insurance premium would be for general liability? Request a quote here now.

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Also, Read: What is the Benefits of Seasonal Business Insurance?

How to get Business Insurance in Florida?

Be prepared to make it easier.

Know what you need

As mentioned above, have your annual revenue, payroll, and business asset values to get started with a BOP or package quote that includes property and general liability as a good starting point. Review your operations and consider other lines of insurance that are appropriate. If your business owns vehicles, you will need a commercial auto policy. If you store sensitive customer or employee information like names, addresses, and social security numbers, you’ll need cyber liability insurance.

Check prices

Compare quotes from multiple carriers to see how much business insurance will cost for the same coverage. Working with an independent agent will help you find the best price and coverage as they can provide you with quotes from a variety of insurers.

Review coverage at least every year:

Adding new products or services may require different coverage. Have this conversation with your agent at renewal, tell them what’s going on in your operations.

Also, Check: Looking for Small Business Insurance in Georgia?

Why Choose an Insurance Advisor for Commercial Insurance in Florida (FL)?

We have many carriers to quote with, and you can request a quote from wherever you are by visiting InsuranceAdvisor.com. Once you create an account, your business information is saved, and you can come back anytime to quote other lines of insurance, get a certificate of insurance, and update your information. Got questions? Talk to one of our licensed agents.

FAQs for Florida (FL) Business Insurance