Frequently Asked Questions About Business Insurance in Florida

Question

Accepted Answer

1. Does every business need commercial insurance?
+

There is no single policy that is mandatory for every business.

Requirements depend on the business activity, number of employees, vehicles used, contracts, and other characteristics of the company. In addition to legal requirements, clients, landlords, banks, and business partners may also require certain coverages.

2. What is General Liability?
+

General Liability helps protect a business against certain claims involving bodily injury, property damage, and other liabilities to third parties.

Coverages, limits, and exclusions vary by policy.

3. When is Workers’ Compensation required in Florida?
+

In the construction industry, businesses with one or more employees generally must maintain Workers’ Compensation coverage.

For non-construction businesses, the requirement generally begins at four or more employees. Specific rules and possible exemptions may apply depending on the business structure.

4. What is a BOP?
+

A Business Owner’s Policy is a policy that may combine Commercial Property and General Liability, along with certain additional coverages.

It is commonly designed for small and midsize businesses that meet the insurance company’s eligibility criteria.

5. Does my personal auto insurance cover business use?
+

Do not assume that it does.

When a vehicle is used for business activities, deliveries, transporting materials, visiting clients, or other commercial operations, that use must be disclosed to the insurance company.

Depending on the activity, Commercial Auto Insurance may be necessary.

6. Does a contractor need insurance in Florida?
+

Depending on the business activity and structure, contractors may need General Liability, Workers’ Compensation, Commercial Auto, coverage for tools, and other forms of protection.

In construction, Workers’ Compensation rules require special attention, including requirements involving subcontractors. Florida requires contractors to verify that their subcontractors have the required coverage.

7. What is a Certificate of Insurance — COI?
+

A Certificate of Insurance is a document used to demonstrate the existence of certain insurance coverages.

Clients, contractors, landlords, and business partners frequently request a COI before work or a contract begins.

8. Can a newly established business obtain insurance?
+

Yes. Insurance options are available for newly established businesses.

The insurance company may request information about the business activity, the owners’ experience, estimated revenue, payroll, employees, and operational characteristics.

9. Does the insurance need to be updated as the business grows?
+

Yes.

Changes such as new employees, increased revenue or payroll, new vehicles, equipment, services, or locations should be reviewed because they may affect the company’s risk and coverage needs.

10. What information do I need to request a quote?
+

Information commonly requested may include:

business name and address;
type of business activity;
date the business opened;
revenue;
payroll;
number of employees;
vehicle information;
equipment and property;
insurance history;
claims history;
contracts and types of services performed.

Additional information may be required depending on the business and the insurance company.

Important

Coverages, limits, deductibles, prices, requirements, and underwriting criteria vary depending on the business activity, insurance company, and policy purchased. The issued policy and its endorsements are the documents that determine coverage.

Official references

This content uses public information from the Florida Department of Financial Services, including guidance on Commercial Property, Business Owner’s Policies, and Workers’ Compensation.

Requirements may vary depending on the business activity, structure, and number of employees. Review the rules that apply to your business and the policy documents.

Coverage	What it can protect
General Liability	Certain claims for bodily injury, property damage, and liability toward third parties.
Commercial Property	The building, furniture, equipment, inventory, and other business assets, as defined in the policy.
Workers’ Compensation	Expenses and benefits related to certain work-related injuries or illnesses among employees.
Commercial Auto	Vehicles used in the company’s operations.
Professional Liability / E&O	Certain claims related to errors, omissions, or failures in providing professional services.
Business Interruption	Can help with lost income and certain expenses when the business has to pause operations due to a covered event.
Cyber Insurance	Certain risks related to cyberattacks, data breaches, and digital incidents.
Inland Marine / Equipment	Tools, equipment, and certain property transported or used away from the main location.
Umbrella / Excess Liability	Additional liability limits above certain underlying policies.

Focus only on your success!

What insurance might a business need?

What is a Business Owner’s Policy — BOP?

What affects the price of business insurance?

Businesses that need a closer look

How do I get a quote with Assureline?

Request a quote for your business insurance