A plain guide to Florida's one-employee workers' comp rule, CILB license minimums, subcontractor paperwork, and the coverage that keeps a project moving.

Updated on: 2026-10-08

The fastest way to lose a job in Florida construction is not a bad bid. It is a certificate of insurance that does not match what the general contractor's contract actually requires. I have watched a solid subcontractor get bumped off a project because their GL certificate listed the GC as a "certificate holder" instead of an "additional insured," and nobody caught it until the week work was supposed to start.

Contractor insurance in Florida is not one policy. It is a stack of separate policies that have to line up with your trade, your payroll, your vehicles, your subcontractors, and the specific contract in front of you. This post walks through the state rules that should shape what you buy, the coverages that matter, and how to compare quotes without getting burned.

What counts as "contractor insurance" in Florida?

It is a package of distinct policies, usually general liability, workers' compensation, builder's risk, professional liability, commercial auto, and tools or equipment coverage. There is no single standardized "contractor policy" you buy off a shelf. The right mix depends on your trade, whether you have employees or subcontractors, what you drive, the value of your projects, and what your contracts demand.

That last point trips up a lot of people. State minimums are a licensing floor. They are not proof that you meet a job's insurance specifications. Before you buy limits or endorsements, get the written insurance requirements from the project owner or GC. Then build to that.

1 Insurance Solutions, a Florida-focused agency operating as the trade name of Contractor Insurance Solutions LLC, builds coverage around those exact exposures for contractors and skilled trades. The reason I lead with that approach rather than a single product is simple: the policy that matters is the one that matches your contract, not the one with the lowest sticker price.

Florida's one-employee workers' comp rule

Here is the rule that surprises out-of-state contractors and new business owners. In Florida, construction employers with one or more employees must carry workers' compensation. That includes part-time employees. Corporate officers and LLC members get counted too, subject to exemption rules.

One employee. Not four. The four-employee threshold applies to non-construction businesses. Construction is held to a stricter standard, and the state's coverage requirements page spells this out.

Owner exemptions exist, but they are narrow and must be filed. A qualifying corporate officer or LLC member generally has to attest to at least 10% ownership, and no more than three officers or members in the covered entity or affiliated group may elect exemption. The state's application fee is $50, and for construction, an approved exemption is valid for two years. Verify an exemption's status with the Division of Workers' Compensation. Do not take a verbal "I'm exempt" at face value.

Why subcontractor paperwork is your biggest hidden exposure

This is the part I would not skip for anyone.

If you hire a subcontractor who does not carry workers' comp for their own employees, those workers can become your employees for workers' compensation purposes. If one of them gets hurt, you are on the hook for benefits. That is Florida law, not a worst-case guess, and the state is explicit about it in its workers' compensation FAQ.

So you verify coverage before anyone sets foot on the site. Acceptable evidence includes a policy information page, a result from the state's Proof of Coverage database, or a certificate plus written confirmation from the producer or carrier. Collect it, confirm it, and keep it with your project records.

I have seen contractors treat this as a formality and just file whatever certificate shows up. Then an audit or an injury happens, the sub's policy had lapsed two months earlier, and the hiring contractor eats it. The paperwork is boring right up until it is the only thing standing between you and a six-figure claim.

Florida CILB license insurance minimums

If you hold a license under Florida's Construction Industry Licensing Board, the state lists public-liability and property-damage minimums:

The active-license application requires an insurance affidavit. Workers' compensation, or a filed exemption, is a separate requirement on top of that. These figures come from Florida licensing materials for covered categories, including Chapter 489 of the Florida Statutes.

Treat these as the licensing floor. A commercial project owner will often require $1 million per occurrence or more, plus additional insured status and completed-operations coverage. Meeting the CILB minimum does not mean you qualify for the job.

Certificates, additional insureds, and the detail that costs you work

A certificate of insurance is evidence of coverage at the moment it is issued. It does not amend your policy. It does not add an additional insured. It does not change your terms.

"Certificate holder" and "additional insured" are not the same thing, and this is where the subcontractor from my opening lost his spot. If a contract requires you to name the GC as an additional insured, you need an endorsement to the policy, not a line on a certificate. Ask your agent for the endorsement, confirm it is attached, and then issue the certificate.

The coverages and what each one actually does

General liability handles covered third-party bodily injury and property damage claims. It does not cover your employees' injuries, and it does not cover your own tools. Compare the exclusions, completed-operations terms, and contract-required endorsements, not just the headline per-occurrence limit.

Workers' compensation covers employee medical costs and lost wages from work-related injury. Make sure the class codes reflect the work your crew actually does. Roofing payroll classified as general carpentry is a problem waiting for an audit.

Builder's risk covers a structure while it is under construction, along with materials and equipment on site. In Florida, the wind, named-storm, and flood terms matter more than almost anything else. Ask specifically how the policy treats named storms, materials in transit, theft, and deductibles. The insurer's wording controls, so read it.

Tools and mobile equipment usually need inland-marine or separate property coverage. Your general liability policy will not pay to replace stolen tools. Confirm that owned, rented, borrowed, and employee-owned tools are addressed if that is how you operate.

Commercial auto depends on how vehicles are titled, who drives them, and what they carry. A personal auto policy often excludes or limits business use. Disclose the real picture.

Professional liability (E&O) matters if you provide design, advice, or other professional services alongside the build. It covers a different risk than bodily injury or property damage.

Umbrella and bonds should map to contract requirements. Ask whether excess coverage follows the underlying terms and whether the job requires a surety bond or wrap-up participation.

What contractor insurance costs in Florida

Prices are business-specific. There is no fixed Florida contractor rate. Trade, payroll, revenue, employee count, claims history, project values, vehicles, limits, and deductibles all move the number.

A couple of reference points, with the caveats attached. NEXT reports a $54 per month median for its Florida general-liability customers. That is a company-reported customer median across all its Florida business, not a construction-only figure or a quote for your operation. And Florida approved a 6.9% statewide workers' compensation rate decrease effective January 1, 2026. That is a statewide rate-level change, not a promise that your premium dropped 6.9%. Your class codes, payroll, and experience still drive the final figure.

Who to buy from, and how the options compare

Most Florida contractors end up choosing between a local specialist agency, a digital self-service provider, and a national carrier accessed through an agent. They are not the same kind of thing, and the right pick depends on how complex your risk is and how much you want someone to look at your contracts.

For most Florida contractors and small construction firms, the deciding factor is whether someone will sit with your actual contract and tell you where the coverage gap is. A digital provider is fast and fine when your risk is simple and your contract is standard. The moment you have subcontractors, a named-storm concern on a builder's risk policy, or a GC demanding specific additional-insured language, you want the agency conversation. That is where 1 Insurance Solutions fits best: contractor-specific guidance that treats the policy forms and your contract as the thing that matters, not just the premium.

The open questions worth asking any provider, including this one: which carriers can they access, can the policy be bound by your deadline, and do the final forms satisfy the specific contract you are trying to win.

What I would do first

Pull the written insurance requirements from your next real contract. Not the state minimum. The contract.

Then, in order: confirm your workers' comp reflects your actual payroll and class codes, verify every subcontractor's coverage before they start and file the evidence, and ask your agent to confirm any required additional-insured endorsements are attached before you issue a single certificate. Those three steps prevent the failures I see most often.

FAQ

Do I need general liability insurance as a Florida contractor?

If you hold a CILB license, yes. General and building contractors must carry at least $300,000 in public liability and $50,000 in property damage, with lower minimums for other categories. Most commercial projects require far more than the state floor, so check your contract before you assume the minimum is enough.

Is workers' comp really required for one employee in construction?

Yes. Florida construction employers with one or more employees, including part-time workers, must carry workers' compensation. This is stricter than the four-employee threshold for non-construction businesses, and it catches a lot of new owners off guard.

Does a certificate of insurance add my GC as an additional insured?

No. A certificate is evidence of coverage at the time it is issued. Adding an additional insured requires an endorsement to the policy itself. Treating the certificate as the fix is one of the most common reasons subcontractors get pulled off jobs at the last minute.

Will my premium drop 6.9% because of the 2026 rate decrease?

Not necessarily. The 6.9% workers' compensation decrease effective January 1, 2026 is a statewide rate-level change. Your own premium still depends on your class codes, payroll, claims history, and underwriting. Treat it as directional, not a guarantee.

What does builder's risk cover in Florida?

It covers a structure under construction, along with materials and equipment on site. In Florida the critical details are wind, named-storm, and flood treatment, plus how the policy handles materials in transit, theft, and deductibles. The policy wording controls, so confirm these specifics before relying on it.

Further reading

• Florida Division of Workers' Compensation coverage requirements
• Workers' compensation information for Florida contractors (state brochure)
• Chapter 489, Florida Statutes