Public Liability and Property Damage: Insurance Requirements for Florida Contractors
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As a prerequisite to the initial issuance, or the renewal of an active construction license in Florida the applicant must prove that they have the statutory insurance policies in place. In order to do so, the applicant shall submit a signed affidavit attesting to the fact that the it has obtained and will maintain public liability and property damage insurance for the life of an active construction license. This is designed for the protection, safety and welfare of the public.
To verify the accuracy of the signed affidavit, the Construction Industry Licensing Board will, from time to time, conduct random sample audits of licensees by zip code area. Upon written request by the Board, each selected licensee shall, within thirty days of mailing of request, submit proof of coverage in the form of an original Certificate of Insurance. Alternatively, the license holder can provide a certified copy of the Certificate of Insurance on file with the building department for the period being audited or a copy of the insurance policy in force for the period being audited showing that the licensee had obtained the proper amount of public liability and property damage insurance. The insurance coverage needs to be continually maintained since the time of the last license renewal. The Certificate of Insurance shall be prepared by an insurance agency and must contain the following information to meet the requirements of the Board:
(a) Date that the Certificate of Insurance was issued.
(b) Name of Insurance Agent.
(c) Name of Insured must reflect the exact name of the business organization qualified by the applicant, and the insured’s fictitious name or d/b/a, if any.
(d) Name of Insurance Company.
(e) Policy number must be on the Certificate.
(f) Effective date of policy.
(g) Expiration date of policy.
(h) Proper aggregate amount of public liability and property damage as defined below:
| Liability | Property Damage | |
| General Contractor | $300,000 | $50,000 |
| Building Contractor | $300,000 | $50,000 |
| All other Contractors | $100,000 | $25,000 |
In order to be valid, the Certificate holder must be the State of Florida, Department of Business and Professional Regulation, the Construction Industry Licensing Board. The cancellation notice shall stipulate that, should the public liability and property damage coverage, described above, be cancelled before the expiration date thereof, the issuing company will mail a thirty day written notice to the Certificate Holder named on this Certificate. Also, the construction insurance will always need to be carried in the name of the licessee and failure to maintain the proper insurance coverages in Florida can result in discipline on the Construction license.