Small Business Insurance Florida

Is Florida business insurance required?

Yes, some types of business insurance are required in the State of Florida to get a professional license, start a business, qualify for business financing, rent a commercial building, hire employees, bid on jobs or sign certain contracts.

Even if it’s not required by the state, county or city, some clients, municipalities, vendors or event spaces may require proof of business insurance coverage (called a certificate of insurance, or a COI) before they’ll do business with you.

Mandatory Florida Workers’ Compensation insurance

Florida state requirements around workers’ compensation insurance are perhaps the most strict. According to the Florida Division of Workers’ Compensation, this type of business insurance is required:

• For the construction industry: Workers’ comp is required for employers with one or more full-time or part-time employees, including the owner of the business who is a corporate officer or Limited Liability Company (LLC) member.
• For non-construction industries: Workers’ comp coverage is required for employers with four or more full-time or part-time employees, including for business owners who are corporate officers or LLC members.

Mandatory Florida Commercial Auto insurance

To drive for business in Florida, it’s required for a business owner to carry commercial auto insurance coverage, including proof of Personal Injury Protection (PIP) and Property Damage Liability (PDL). To learn more about compliance and mandatory coverage, check with the Florida Department of Highway Safety and Motor Vehicles.

While workers’ comp and commercial vehicle coverage may be the only types of coverage required by Florida state law, the city or county where your business operates may have additional requirements. Ask the occupational license office in your county or city to find out if you need additional insurance. Coverage requirements can also vary by profession and license type.

Even if it’s not required, many FL small business owners could benefit from the financial protection that business insurance can provide.

How much does Florida business insurance cost?

The cost of business insurance for a small business depends on a number of factors, including the type of policy your business needs and your business’ level of risk.

At ERGO NEXT Insurance, some business owners spend as little as $19 per month^† for a single policy. And almost half of the businesses that we insure in Florida — 44% — spend under $50 per month for their total coverage.***

For general liability insurance, the most common type of business insurance bought by our customers in the Sunshine State, the median cost for Florida liability coverage is just $54 per month.

66% of Florida business owners insured by ERGO NEXT spend $100 or less per month for business insurance.

The monthly or annual premium you’ll pay for your business depends on a number of factors related to your business risk, including:

• Your industry. Jobs that are higher-risk, such as construction, often have higher insurance costs than lower-risk desk jobs, such as an accountant.
• The number of employees you have. With Florida’s mandate on workers’ comp coverage for employees, your business insurance might cost more if you have employees than if you’re a sole proprietor.
• The location of your business. If you’re in a densely populated city like Miami, Tampa, Jacksonville or Orlando, you may pay more for business insurance than if you work in a small town. And your business’ exposure to natural disasters could also mean you’re going to see higher costs.
• Your years of work experience. A proven history of workplace safety and success in your industry can impact your insurance rate. A new business owner could pay more than a veteran in their field.
• Your history of insurance claims. Your record of safety, losses and claims can have an impact on your insurance premium.
• The insurance coverage limits you choose. Higher insurance coverage limits on your policy can offer more protection over more risks. But it can also increase the cost of your business insurance.

The best way to know exactly what you’ll pay for business insurance is to check prices for your business. It takes about 10 minutes, and you can do it 100% online.

Start a free business insurance quote with ERGO NEXT.

Which types of business insurance policies do Florida business owners buy most often?

78% — about four out of five — of the policies that ERGO NEXT has with Florida business owners are a general liability insurance policy. Customers buy this type of policy for its coverage for accidental property damage caused by their business, and for medical costs for non-employees who get hurt at their place of business.

Though this type of coverage isn’t mandated by the state, it’s often required to start or grow a business. Many business partners, such as landlords, loan officers, vendors or clients require liability coverage:

• To get a professional license
• To qualify for business financing
• To sign a lease on a commercial storefront, office, warehouse, workshop, storage facility or building
• To submit a bid for a job
• To participate as a vendor in an event space
• To begin work on some contracts

Our second-most popular type of small business insurance in Florida is professional liability insurance, also called errors and omissions insurance or E&O in some professions. This is an essential — and often required — type of Florida business insurance for professions who sell their advice and services, including real estate agents and brokers, insurance agents or brokers, financial advisors, consultants and more.

78% of the active policies that ERGO NEXT customers have in Florida are general liability insurance.