Florida Business Insurance Requirements That You Should Know

The Florida economy is booming. That’s thanks in large part to the constant population growth of the sunshine state.

People are moving away from the West Coast and the cold, dreary northern states in droves in search of a happier, easier life. And Florida is welcoming them with open arms.

Florida currently ranks third in the number of small businesses per state, with nearly three million across the state. Are you considering launching your new business venture here?

Luckily, Florida is very business-friendly. But there are still Florida business insurance requirements that you need to be aware of. 

Keep reading below to learn about business insurance in Florida to ensure you are covered from every angle starting on day one. 

Workers’ Compensation Insurance

Florida business insurance laws mandate that any employer with four or more employees get workers’ comp insurance. It’s actually the only policy required by law for Florida businesses. The rest are just really, really good ideas.

To be workmans comp exempt in Florida, you’ll need to keep three or fewer employees on the payroll.

It’s a really good idea to have this policy, especially if your team does any type of manual labor or uses heavy machinery. If an employee gets hurt on the job, they can hold you liable.

Workers’ compensation insurance will cover the medical expenses of any employee who gets hurt while performing their duties. It will also cover missed wages while they are unable to work during recovery from injury.

If legal action occurs, then this insurance policy can cover the hefty fees that come with that.

Almost one million nonfatal workplace injuries take place each year. It’s best not to take a chance by skipping this policy. 

General Liability Insurance

This is the most basic type of business insurance you can get. There’s never a reason to bypass this policy, even though it isn’t mandatory. 

It helps to cover you and your business from common risks. If a customer is injured on your property, for example, this policy would cover it. Or if you damage a customer’s property, this policy could cover that as well.

If you’re going to rent a commercial building, you will most likely need to have one of these policies, not by law, but by your landlord. 

Commercial Property Insurance

Whether you rent or own, commercial property insurance is vital as well. This will cover your business in the event that your building is damaged or destroyed.

If your kitchen staff starts a fire and burns the building down, you should be covered. Or if a pipe bursts and floods the building, you should also be covered.

It can also cover the cost of inventory or equipment stored on the property, as well as important documents or proprietary information that may be at risk due to property damage. 

Business Owner’s Policy

The simple way to handle both of the above policies is by getting a business owner’s policy (BOP). A BOP bundles general liability insurance with commercial property insurance.

This helps you get a better rate on both policies and simplifies the payment process. 

Commercial Vehicle Insurance

If there is any driving done on behalf of your business, then you should have commercial auto insurance. If you have a company-owned vehicle, it can’t be insured on a personal insurance policy.

A commercial auto policy will cover the cost of injuries or property damage caused by the driver. It also covers costs associated with auto theft and damage due to weather or vandalism.

If you hit something in your business vehicle, your policy will also cover the cost of repairs to the vehicle. 

If you or your employees ever use a personal vehicle for business purposes, this policy is also important.

Say your employee was driving to a supplier in their personal vehicle to check on product samples. If they caused an accident, the victim could take legal action against your business. This policy would also cover the cost and legal fees associated with your team driving personal vehicles. 

Professional Liability Insurance

This policy is also referred to as errors and omissions insurance. If you provide any type of advice to clients, this policy is important.

If advice that you provide leads to accidents, damage, or harm to someone else, you could be held liable. A professional liability policy would cover you in those instances.

For example, if you’re a contractor, and you say it’s safe to tear out a specific wall, only to have the ceiling collapse as a result, you could be held responsible for damage or injury that results. 

Likewise, healthcare professionals, counselors, attorneys, and wealth advisors should all have this policy in place. 

Cyber Liability Insurance 

Cyber liability insurance is becoming increasingly important for large and small businesses alike. Hackers are growing in number. And their ability to break through security systems and access private information is getting stronger every day.

For most businesses, it’s not a matter of if you’ll get hit with a cyberattack, but when. And recovering from a cyber attack can be costly.

If your business is at fault for providing sensitive information to hackers, then those who are affected could take legal action against you. And since attacks like these usually result in lots of customer information shared, many people are likely to take action against you.

It covers a number of things. If a hacker takes any of your assets or information hostage and demands payment to get it back, the insurance may cover those payments.

When you alert customers that their data was subject to a breach, that costs money. Upgrading your security systems after an attack, dealing with public relations, and handling legal fees can also be covered by this. 

Florida Business Insurance Requirements Are Easy

Florida business insurance requirements are simple. You only need to have worker’s compensation insurance if you have four or more employees. All other policies are technically optional. But you would be a unique business owner to put your company and source of income at risk by not getting these important policies. 

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