Florida Construction and Trades
Insurance

Windstorm and Hurricane Coverage for Job Sites

Standard commercial property policies in Florida often exclude wind damage, particularly in coastal counties. You'll need separate windstorm coverage or a policy that specifically includes this peril. During active construction, exposed structures face heightened vulnerability to wind damage.

Review your policy's named storm deductible carefully. Many Florida policies carry percentage-based deductibles for hurricane damage, meaning a 2% deductible on a $500,000 project equals $10,000 out of pocket before coverage kicks in.

Flood and Water Damage Liability

Flood damage requires separate coverage through the National Flood Insurance Program or private flood insurers. Standard liability and property policies exclude flood damage entirely. For contractors working in flood zones, this coverage protects both your equipment and your liability exposure if construction activities contribute to water damage on neighboring properties.

Inland Marine and Tools Coverage

Your tools and equipment travel with you, which means standard property insurance often won't cover them adequately. Inland marine insurance protects tools, equipment, and materials in transit or stored at job sites. For trades professionals, this coverage often represents your most valuable business assets after your vehicle.

Builders Risk Insurance for New Construction

Builders risk policies cover structures under construction against damage from fire, theft, vandalism, and certain weather events. The policy typically covers the structure, materials on site, and materials in transit. Coverage begins at project start and ends at completion, certificate of occupancy, or when the owner takes possession.

Who purchases builders risk varies by contract. General contractors often carry project-specific policies, while some property owners maintain their own coverage. Clarify this responsibility before breaking ground.

Professional Liability for Design-Build Firms

If your firm provides design services alongside construction, professional liability insurance covers errors and omissions in your design work. Standard general liability excludes professional services, creating a gap that can prove costly when design flaws cause project failures or require expensive corrections.

Document everything before problems occur. Photograph job sites daily, maintain written communication records, and keep detailed project files. When claims arise, this documentation often determines outcomes.

Report claims promptly. Delayed reporting can result in coverage denials and complicates the claims process. Your policy likely includes reporting timeframes that, if missed, may void coverage for that incident.

Work with an insurance agent who specializes in construction. General business insurance agents may not understand the specific exposures contractors face or the policy endorsements needed to address them.

Do I need insurance if I'm a sole proprietor with no employees? Yes. General liability protects you against third-party claims regardless of your business structure. Many clients require proof of coverage before hiring you.

Can I use my personal auto insurance for my work truck? No. Personal auto policies exclude business use. You need a commercial auto policy for any vehicle used in your contracting business.

What's the difference between builders risk and general liability? Builders risk covers the structure under construction. General liability covers injuries or property damage to third parties caused by your operations.

How often should I review my coverage limits? Annually at minimum, and whenever you take on larger projects, add employees, or purchase significant equipment.

Does my general liability cover subcontractors I hire? Typically no. Require certificates of insurance from all subcontractors and verify their coverage before they begin work.

Florida's construction insurance market demands attention and expertise. The combination of weather risks, litigation environment, and regulatory requirements creates a landscape where inadequate coverage can end a business overnight. Building your insurance program thoughtfully protects both your current operations and your long-term growth potential.

Start by assessing your actual exposures rather than purchasing minimum required coverage. Consult with a construction-focused insurance professional who understands Florida's specific requirements. Review your policies annually and adjust coverage as your business evolves. The investment in proper protection pays dividends every time you avoid a claim that could have devastated an underinsured competitor.