A new project brings more than a materials list and a start date. Before your crew arrives, make sure your insurance reflects the work you will actually perform, the people doing it, and the contract you have agreed to fulfill.
For contractors and subcontractors working in Celebration, Orlando, Kissimmee, Davenport, and throughout Florida, a useful starting point is a project-specific insurance review. Here are the questions to bring to that conversation.
Does your liability coverage fit the work?
Commercial general liability insurance can help address covered claims involving bodily injury or damage to someone else’s property. It does not cover every loss connected with a job, and it is not a substitute for insurance on your own tools or vehicles. Travelers’ general liability overview explains these distinctions.
Tell your agent if you are taking on a different trade, larger projects, new types of buildings, or work outside your usual territory. Ask which exclusions or limitations could affect that work and how the policy addresses claims arising after a job is completed. Avoid assuming that last year’s policy automatically fits this year’s projects.
Have you checked Florida workers’ compensation requirements?
Florida generally requires construction employers with one or more employees, including non-exempt business owners, to carry workers’ compensation coverage. An eligible owner’s exemption does not mean the business’s employees are exempt. Check the Florida Division of Workers’ Compensation coverage requirements and review your situation before work begins.
Hiring subcontractors also requires attention. Florida’s Division of Workers’ Compensation explains that the primary contractor must ensure subcontractors have coverage for their workers and can become responsible for benefits when an uninsured worker is injured. Its employer FAQ describes the documentation used to verify coverage or exemptions. Paying someone with a 1099 does not, by itself, resolve construction workers’ compensation obligations.
What about trucks, trailers, tools, and equipment?
Make an inventory of what travels to the job and who owns it. Discuss commercial auto, tools and equipment coverage, and any rented equipment with your agent. These are distinct exposures within a contractor’s insurance program; Travelers’ construction coverage overview outlines several of the available coverage types.
Useful questions include: Are tools covered while stored in a trailer overnight? What deductible would apply to theft? Does rented equipment need to be listed? Who will drive each vehicle, and how will it be used? The answers depend on the specific policy, so ask before relying on coverage.
Bring the contract to the insurance conversation
Send the project’s insurance requirements to your agent early. Ask the agent to compare requested limits, additional insured requirements, and any required endorsements with the coverage available under your policies. For interpretation of indemnity clauses or other legal obligations, consult your attorney.
Your pre-job insurance checklist
- Describe the work, location, project value, and expected start and finish dates.
- Provide current staffing, payroll, and subcontractor information.
- Gather subcontractor coverage documentation before the job starts.
- List vehicles, trailers, tools, and owned or rented equipment.
- Share the contract’s insurance requirements and ask about gaps before signing.
Talk with Discovery Insurance Agency
Planning a new project or growing your contracting business? Call Discovery Insurance Agency at (407) 566-8600 to discuss your operations and insurance needs. Bring your current policies and the project requirements so we can start with the details that matter to your business.
This article provides general information. Coverage depends on policy terms, exclusions, limits, and underwriting. Legal requirements and exemption eligibility depend on your circumstances; consult the current Florida guidance and qualified advisers.