If you run a business in Hollywood, Florida, you're operating in one of Broward County's most dynamic markets. Between the Seminole Hard Rock Hotel and Casino, the iconic Hollywood Beach Broadwalk, and a thriving healthcare sector, there's real opportunity here. But here's what most business owners don't realize until it's too late: your business faces unique risks that require specific insurance coverage. Whether you're running a beachfront restaurant, a retail shop downtown, or a medical practice, understanding your insurance needs isn't optional—it's essential to protecting everything you've built.
Why Hollywood Businesses Need Specialized Coverage
Hollywood welcomed its share of Florida's 142.9 million visitors in 2024, who spent over $130 billion statewide. That tourism traffic is great for business, but it also means your exposure to liability claims is higher than inland businesses. A tourist slips on your wet floor, a customer claims food poisoning from your restaurant, or a client alleges professional negligence—these scenarios happen every day in tourism-heavy markets.
And then there's the hurricane factor. You've probably already thought about this, but here's what catches business owners off guard: standard commercial property insurance typically doesn't cover flooding. When a hurricane hits, wind damage might be covered, but the storm surge that floods your first-floor retail space? That requires separate flood insurance. With new FEMA flood maps that became effective July 31, 2024, nearly 90,000 additional Broward County properties were moved into special flood hazard zones. If you have a federally backed mortgage and you're in one of these zones, flood insurance isn't optional—it's required.
Workers' Compensation: What Florida Law Requires
Let's talk about workers' compensation, because the rules in Florida are stricter than many business owners expect. If you have four or more employees—including yourself if you're a corporate officer or LLC member—you need workers' comp coverage. But if you're in construction, that threshold drops to just one employee. Even if you're a solo contractor doing renovation work, you need coverage.
The penalties for skipping this coverage are severe. If you're caught operating without required workers' comp insurance, you could face a stop order that shuts down your business immediately. The fine? Typically twice what you would have paid in premiums for the last two years. For a business with payroll, that can easily run into tens of thousands of dollars.
Here's something that surprises people: executive officers included in coverage must use a minimum payroll of $62,400 for premium calculations in 2024, with a maximum of $187,200. For construction officers, the minimum is $31,200. These numbers matter because they directly affect your premium costs.
Business Interruption Insurance: Your Financial Safety Net
This is the coverage most Hollywood business owners wish they'd purchased before they needed it. Business interruption insurance replaces your lost income and covers ongoing expenses when you're forced to close temporarily due to a covered event—usually a hurricane, fire, or other major disaster.
Think about what happens when a hurricane forces you to close for two weeks. Your revenue drops to zero, but your rent doesn't stop. Your loan payments don't pause. Your key employees still need paychecks, or they'll find other work. Business interruption insurance covers all of this. It can even pay for relocation costs if you need to operate from a temporary location while repairs are being made.
For coastal businesses in Hollywood, this coverage is critical. You're not just protecting against the unlikely scenario of total destruction—you're protecting against the very likely scenario of temporary closure due to evacuation orders, flooding, or wind damage that makes your space temporarily unusable.
Coverage for Hollywood's Key Industries
Hollywood's economy is built on tourism, healthcare, retail, and hospitality. Each of these sectors has specific insurance needs beyond basic coverage. If you run a restaurant or hotel, you need liquor liability coverage if you serve alcohol, plus employment practices liability to protect against discrimination or wrongful termination claims. Food-borne illness coverage is also essential for restaurants—one outbreak can generate thousands of dollars in claims.
Healthcare providers need professional liability insurance, also called medical malpractice coverage. With Hollywood's healthcare sector growing—including the new 12,210 square foot Barry University College of Nursing and Health Services campus—there are more medical practices opening all the time. Professional liability protects you if a patient alleges negligence, misdiagnosis, or treatment errors.
Retail businesses need general liability coverage for slip-and-fall claims and product liability if you sell goods. If you operate near the beach or in high-traffic tourist areas, your liability exposure is higher simply because of the volume of customers coming through your doors.
Flood Insurance: Understanding Your True Risk
The July 2024 flood map changes were a wake-up call for thousands of Broward County business owners. Properties that were previously considered low-risk are now in special flood hazard zones, which means if you have a federally backed mortgage, you're required to carry flood insurance.
Through the National Flood Insurance Program (NFIP), businesses can get up to $500,000 in building coverage and $500,000 in contents coverage. But here's the catch: if your business property and inventory are worth more than that, you're underinsured. The good news is that private flood insurance companies can supplement NFIP policies with additional coverage.
One important timing note: most flood insurance policies take 30 days to take effect after purchase. You can't wait until a hurricane is forecast and then buy coverage. You need to plan ahead.
How to Get the Right Coverage for Your Business
Start by understanding that a Business Owner's Policy (BOP) bundles several types of coverage—typically general liability, commercial property, and business interruption insurance—into one package. For many small to medium-sized businesses, a BOP provides solid foundational coverage at a lower cost than buying each policy separately.
But a BOP isn't one-size-fits-all. You'll likely need additional coverage based on your specific business. Check your flood zone designation using Broward County's interactive map tool to determine if flood insurance is required. Review your payroll to ensure you meet workers' compensation requirements. Consider cyber liability insurance if you store customer data electronically—this is increasingly important as more businesses digitize their operations.
Work with an insurance agent who understands Hollywood's market. They should ask detailed questions about your location, your customer base, your revenue sources, and your specific risks. The cheapest policy isn't always the best policy—what matters is having the right coverage when you need it. With nearly $1.5 billion in development reshaping Hollywood's business landscape, now is the time to make sure your insurance strategy keeps pace with your growth.
