Construction projects in Florida face many risks. Hurricanes and sinkholes are common in the state. Because of this, having the right insurance is essential. It protects your investment and makes sure you follow state laws.
What types of insurance do I need for my construction project?
In Florida, construction projects need specific insurance to protect everyone involved. Here are the key policies:
- General liability insurance: Contractors must have this insurance for projects over $2,500 that use public funds. It covers risks like property damage and injuries to others.
- Workers’ compensation insurance: If you hire construction workers, you must provide workers’ compensation insurance. This protects workers if they get hurt on the job and prevents lawsuits against employers.
- Builders’ risk insurance: This policy protects materials and the building during construction. It covers damage from fire, theft, vandalism and natural disasters.
Understanding these insurance requirements and coverage limits is important for each project.
How much insurance do I need for my project?
Determining the right amount of insurance for your project involves several key factors:
- Project value: Larger and more complex projects carry higher risks, so you need higher coverage limits.
- Contract requirements: Review your contracts carefully because they often specify minimum insurance needs.
- Subcontractor coverage: Ensure subcontractors have insurance policies to avoid coverage gaps.
Choosing the wrong coverage can put you at significant financial risk and significantly affect your business.
Protecting your construction project from uncertainty
Each project has its risks and challenges. You must look closely at your project’s needs to get the right coverage. It is a good idea to talk to a professional who can guide you. They can help you make smart choices about your construction business’s insurance coverage.
