Florida Contractor License and Insurance Requirements: What You Must Carry

Florida has some of the most comprehensive contractor licensing requirements in the country. The Florida Department of Business and Professional Regulation (DBPR) and the Construction Industry Licensing Board (CILB) set the insurance requirements for licensed contractors \u2014 and failing to maintain the required coverages can result in license suspension, fines, and personal liability for job site injuries.

Workers\u2019 Compensation Requirements

Florida requires workers\u2019 compensation coverage for most construction employers with one or more employees. This is one of the strictest thresholds in the country \u2014 most other states require coverage only when you have four or more employees. Sole proprietors and partners in the construction industry are not automatically exempt in Florida; they must actively elect to be exempt using the DBPR\u2019s online exemption system, and the exemption must be renewed every two years.

General Liability Requirements by License Type

Certified General Contractors in Florida must carry a minimum of $300,000 in general liability coverage. Certified Building Contractors require $100,000 minimum. Specialty contractors (electrical, plumbing, HVAC, roofing) have varying requirements set by the CILB. Many project owners and GCs require higher limits \u2014 $1M per occurrence is common for commercial work in Florida.

The Subcontractor Exemption Issue

One of the most common compliance issues we see is Florida contractors using subcontractors who have filed workers\u2019 comp exemptions but are working in situations where the exemption does not apply. A sole proprietor exemption only covers the individual owner \u2014 it does not cover any employees the sub may have. If your sub has employees and their exemption only covers the owner, you may be liable for those employees\u2019 workers\u2019 comp coverage. Always verify that a sub\u2019s COI covers all workers on your job site, not just the owner.

Maintaining Compliance Year-Round

Florida contractor license compliance is not a once-a-year task. You need to track your own policy renewal dates, track subcontractor COI expirations, verify that any sub using an exemption has a current exemption on file, and maintain documentation of all of the above. Audit Monkey manages this compliance calendar for Florida contractors as part of our subcontractor compliance service.