Here's something that catches most flooring installers off guard: Florida completely eliminated the state flooring installation license requirement in 2024. But before you think that means less paperwork and fewer requirements, let me stop you right there. While you don't need a specialized license anymore, the insurance requirements haven't gone anywhere—and if anything, understanding what you need has gotten more complicated.
Whether you're installing luxury vinyl plank in Tampa condos or laying hardwood in Jacksonville homes, the right insurance protects you from the risks that come with the territory—damaged subfloors, water leaks from improperly sealed installations, or a client tripping over tools at the job site. Let's break down exactly what coverage you need to operate legally and protect your business in Florida.
The Licensing Landscape Changed (But Insurance Didn't)
Since July 1, 2024, Florida doesn't require flooring installers to hold a state contractor license. This puts flooring work in the same category as painting, cabinetry, and decorative tile installation—trades that local governments can't require state licenses for. That's the good news.
The reality check? You still need an active business registration through Florida's Sunbiz system, you still need proper insurance coverage, and you still need to follow local building codes. Some counties and municipalities may also have their own registration or permitting requirements, so check with your local building department before assuming you're clear to operate everywhere in the state.
If you decide to pursue a general contractor license or other specialty contractor designation, the insurance requirements become more specific. General contractors must carry at least $300,000 in liability and $50,000 in property damage insurance, while other license holders need at least $100,000 liability and $25,000 property coverage. But even without a license, your clients and contracts will likely demand similar coverage amounts.
Workers' Compensation: The Non-Negotiable Requirement
This is where Florida gets strict with construction businesses. If you have even one employee—part-time, full-time, family member, doesn't matter—you must carry workers' compensation insurance. That's a much lower threshold than non-construction businesses, which only need coverage once they hit four employees.
As a business owner, you can exempt yourself from coverage if you own at least 10% of your corporation or LLC. The exemption costs $50 and must be renewed every two years. But here's the catch: the moment you hire your first employee, that exemption doesn't protect you anymore. You need a full workers' comp policy covering everyone on your payroll.
The workers' comp rules extend to your subcontractors, too. Under Florida law, you're responsible for ensuring all your subs either carry their own workers' comp policy or have valid exemptions. If a subcontractor's employee gets injured on your job site and the sub doesn't have coverage, guess who's on the hook? You are. That injured worker can come after you for benefits, and those costs can quickly exceed what you're making on the entire project.
In 2025, temporary total disability benefits are capped at $1,295 per week, which gives you some context for what you might face if an employee gets seriously injured. Always verify your subs' coverage before they set foot on a job site—it's not just good practice, it's financial self-preservation.
General Liability Insurance: What Clients Actually Require
Florida doesn't have a state-mandated minimum for general liability insurance for flooring installers. But that's misleading, because the market has its own requirements. Most commercial property managers, general contractors, and even many homeowners won't let you start work without proof of at least $1 million per occurrence and $2 million aggregate coverage.
Here's what general liability actually protects you from: You're installing engineered hardwood in a client's living room and accidentally scratch their $3,000 coffee table with your miter saw. Your employee trips over a rug and crashes into a display cabinet, shattering the glass and destroying family heirlooms. A homeowner slips on sawdust you didn't clean up and breaks their ankle. General liability covers the property damage, medical bills, and legal defense costs if you get sued.
The good news is that general liability coverage is relatively affordable. Policies can start as low as $39 per month or around $500 per year for basic coverage. Most flooring installers pay an average of $63 per month, or about $759 annually, though costs vary based on your revenue, claims history, and the specific types of flooring work you do. Commercial work with higher project values typically means higher premiums.
Don't confuse general liability with professional liability or errors and omissions coverage. General liability covers bodily injury and property damage. If a client claims you gave bad advice about moisture barriers that led to mold problems under their flooring, that's a professional liability issue, not general liability. Many flooring installers carry both types of coverage for complete protection.
Commercial Auto, Bonds, and Additional Coverage
If you use a truck or van to haul flooring materials, tools, and equipment between job sites, you need commercial auto insurance. Florida requires at least $10,000 in Personal Injury Protection (PIP) and $10,000 in Property Damage Liability (PDL) for commercial vehicles. These minimums cover basic scenarios, but they won't go far if you cause a serious accident with expensive materials in your vehicle.
The requirements increase with vehicle weight. If you're operating heavier trucks or specialized equipment, you could need anywhere from $50,000 to $300,000 in combined single limit coverage depending on your vehicle's gross weight. And if you cross state lines for jobs, interstate requirements jump to $300,000 minimum—substantially more than the basic Florida requirement.
Bonding requirements are less common for flooring installers now that the statewide contractor bond has been eliminated for most licensees. However, if you pursue a contractor license and have a credit score below 660, you'll need to post a bond ranging from $5,000 to $20,000 depending on your division classification. Some municipalities also require local contractor bonds, typically ranging from $1,000 to $25,000, with $5,000 being the most common amount.
Inland marine insurance (yes, it's a weird name for coverage that has nothing to do with water) protects your tools and equipment when they're being transported or stored at job sites. If someone breaks into your van overnight and steals $15,000 worth of flooring saws, nailers, and specialty tools, inland marine coverage replaces them. Many flooring installers consider this essential coverage given the high value of professional installation equipment.
How to Get Started and Stay Compliant
Start by registering your business through Florida's Sunbiz system if you haven't already. Then contact a commercial insurance agent who works with contractors—don't try to piece together coverage from a personal lines agent who mainly sells auto and home policies. You need someone who understands construction risks and can package your general liability, workers' comp, commercial auto, and tool coverage into a business owner's policy (BOP) that makes sense for your specific operation.
Before you bid on any commercial projects, verify what insurance the contract requires. Some property managers want to be named as additional insureds on your policy. Others require specific coverage limits or deductibles. Don't wait until you've won the bid to discover you need to upgrade your coverage—that can delay your start date and make you look unprofessional.
Keep detailed records of your subcontractors' insurance certificates and exemptions. Create a system where you verify coverage before each project, not just when you first start working with a sub. Policies lapse, exemptions expire, and you're the one who'll pay if you don't catch it. Many contractors use simple spreadsheets with renewal dates and automatic reminders to stay on top of this.
Finally, review your coverage annually as your business grows. That $500-per-year general liability policy that made sense when you were a solo installer working on small residential jobs won't cut it when you're running a crew and handling $100,000 commercial projects. Your insurance should scale with your business, and a good agent will help you adjust coverage as your risks and revenue change.
