If you're planning to operate as a general contractor in Florida, you're stepping into one of the most regulated construction markets in the country. And for good reason—Florida's hurricane risks, rapid development, and high litigation rates mean the state takes contractor insurance seriously. The good news? Once you understand what's required, getting properly insured and licensed is straightforward. Here's everything you need to know about Florida's insurance requirements for general contractors in 2026.
General Liability Insurance: Your License Gateway
Before the Florida Department of Business and Professional Regulation (DBPR) will even consider your general contractor license application, you need to show proof of general liability insurance. For Certified General Contractors (CGC) or Building Contractors (CBC), the minimums are $300,000 for bodily injury and $50,000 for property damage. If you're a residential or specialty contractor, those numbers drop to $100,000 and $25,000 respectively.
But here's where most contractors get tripped up: those state minimums are just the floor, not the ceiling. In reality, if you're bidding on commercial projects or working with savvy property owners, you'll likely need at least $1 million in general liability coverage. Why? Because Florida has one of the highest litigation rates in the nation. A single slip-and-fall accident or property damage claim can easily exceed $300,000. Most clients and commercial landlords will ask to see a certificate of insurance before signing a contract, and many won't accept anything less than $1 million in coverage.
When you apply for your license, you'll need to submit a signed affidavit attesting that you've obtained this insurance and will maintain it for the life of your active certificate. And that's not just paperwork—failing to continuously maintain your coverage is a violation that can cost you your license.
Workers' Compensation: The One-Employee Rule
Here's where Florida gets strict: if you're in the construction industry and you have even one employee—including yourself if you're a corporate officer or LLC member—you need workers' compensation insurance. Most other Florida businesses don't need workers' comp until they hit four employees, but construction is different. The threshold is essentially one or more employees, period.
You must secure workers' compensation insurance or be granted an exemption within 30 days of receiving your license. If you're an owner or officer who owns at least 10% of the company, you can apply for an exemption for yourself. Construction industry exemptions cost $50 and must be renewed every two years. However, no more than three officers can claim exemption in a construction company.
And here's the kicker that catches many general contractors off guard: you're responsible for making sure your subcontractors carry proper workers' comp for their own employees. If they don't, those workers are considered your employees by law, and you're liable for any injuries that occur. This is why experienced contractors always verify subcontractor coverage before bringing them onto a job site.
Surety Bonds: What You Actually Need in 2026
Good news first: as of April 2022, Florida eliminated the statewide contractor bond requirement for applicants with a credit score of 660 or higher. If your credit score is above that threshold, you're off the hook for the state bond. If it's below 660, you'll need either a $20,000 bond for Division I contractors or a $10,000 bond for Division II contractors. You can cut those amounts in half by completing a board-approved 14-hour financial responsibility course.
However, there's one bond you can't avoid: the Financially Responsible Officer (FRO) bond. Every qualifying agent must post a $100,000 FRO bond or cash deposit made out to the DBPR. These bonds typically cost 1-3% of the bond amount annually, so you're looking at $1,000 to $3,000 per year depending on your credit score and financial history.
One more thing: even though the state bond is gone for many contractors, don't forget about local requirements. Many Florida cities and counties still require their own contractor bonds. For example, Orlando requires a $5,000 bond for state-certified contractors working in the city. Always check with your local building department before assuming you're bond-free.
What It Actually Costs and How to Get Started
Let's talk real numbers. A basic general liability policy at the state minimum levels might run you $1,200 to $2,500 annually for a small operation. But if you're carrying the recommended $1 million in coverage, expect to pay $2,000 to $5,000 or more, depending on your experience, claims history, and the type of work you do. High-risk specialties like roofing or demolition will be on the higher end.
Workers' compensation is trickier to estimate because it's based on your payroll and the classification codes for the work your employees perform. Florida uses a rating system where riskier work commands higher premiums. Your insurer will audit your payroll at the end of the policy term and adjust your premium accordingly, so accurate record-keeping is essential.
When you're ready to get your insurance in place, shop around. Talk to brokers who specialize in contractor coverage—they understand Florida's requirements and can often bundle your general liability, workers' comp, commercial auto, and other policies for a better rate. Get your insurance squared away before you submit your license application, because the DBPR won't move forward without proof of coverage.
Remember, your Florida contractor license expires every two years on August 31st of even-numbered years (2026, 2028, and so on). Before renewal, you'll need to prove you've maintained your insurance continuously. Letting your coverage lapse, even for a day, can trigger license suspension. Set calendar reminders for your policy renewal dates, and consider working with an insurance broker who can manage renewals for you. Getting properly insured might feel like jumping through hoops, but once it's done, you're protecting both your business and your ability to work legally in one of the nation's most active construction markets.
