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What Out-Of-State Contractors Need to Know About Florida Insurance Requirements

Many contractors elect to work in neighboring states as a foreign limited liability company (LLC) in order to stay competitive in the industry and pursue highly lucrative projects. In order to successfully and lawfully operate within the borders of Florida, out-of-state contractors must become familiar with Florida’s laws and insurance requirements for contractors.

In this article, we will discuss what out-of-state contractors need to know about roofing insurance in Florida and how it could impact their next roofing contract. For assistance handling disputes stemming from roofing insurance or contracts, consult an attorney experienced with the needs of roofing contractors from Cotney Construction Law. 

Workers’ Compensation 

Out-of-state contractors can either use the insurance policy from their home state or obtain a Florida Workers’ Compensation Insurance policy with a Florida approved insurance carrier which meets the requirements of Florida Insurance Code. If you decide to use an out-of-state policy, you must contact your insurance company and request that Florida be added to “Section 3.A.” of the policy. 

If you do not have Florida added to your out-of-state policy or obtain Florida workers’ compensation and your workers’ compensation insurance is from one of the states listed here, you will be able to operate in Florida for no more than 10 consecutive days or 25 days total out of the year under an extraterritorial reciprocity clause. Failure to meet these requirements will result in a Stop-Work Order, requiring a cessation to all Florida business operations, as well as a penalty for two times the amount the business would have paid in workers’ compensation premium during the time it was out of compliance for up to two years.

Related: What Types of Insurance Should Roofers Have and Why?

General Liability

Before a contractor can become licensed in the state of Florida, they must show proof of obtaining general liability insurance. The minimum general liability insurance that a contractor must carry is $300,000 for bodily injury and $50,000 for property damage. General liability insurance for Florida contractors is designed to protect your business from operations that result in damage to a third party. Covered claims can include property damage, personal injury, and advertising injury. 

Failure to obtain general liability insurance can result in hefty fines as well as the suspension of your license. Additionally, without general liability insurance, your business will not be protected from claims resulting from property damage, personal injury, or advertising injury. If you are ever involved in a lawsuit regarding property damage or personal injury during your roofing contract, contact one of our Florida contractor lawyers.

Related: Are Roofing Insurance and General Liability Insurance the Same Thing?

Other Coverage Types

Other insurance types to consider include:

  • Commercial vehicle insurance: All Florida vehicles utilized in your roofing business, including cars, trucks, vans, or trailers should be covered under commercial vehicle insurance.
  • Tool and equipment floater: This form of insurance can be added on to your general liability insurance in order to provide protection for your equipment and tools. 
  • Professional liability insurance: If you recommend specific products to customers or regularly consult with clients, this insurance will protect your roofing business from legal claims should your advice or recommendations result in loss or damage for the client.

Many considerations are involved in the process of purchasing insurance for your roofing business, from which grade of worker’s compensation is necessary to cover your workforce to whether or not you will require additional insurance, such as professional liability or commercial vehicle insurance. Complying with the requirements of Florida law is necessary for contractors who want to operate lawfully within its borders and avoid costly fines and lawsuits. If you have been accused of operating in Florida without insurance or violating a workers’ compensation policy, consult Cotney Construction Law.

If you would like to speak with an experienced attorney about a roofing contract or roofing insurance, please contact us today.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.

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