Contractor Insurance
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Contractors Insurance
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What Insurance Do Trade Contractors Need in Jacksonville, FL?
Contractor insurance in Florida is not a single policy. For a trade contractor working in Jacksonville, it's a combination of liability insurance, workers' compensation, commercial auto, and coverage for your tools and equipment.
The right mix depends on your trade, your employees, your vehicles, and the contracts you work under. At Augustyniak Insurance Group, we've been helping Jacksonville trade contractors sort this out since 2005.
Florida's construction industry is one of the most tightly regulated in the country. The Florida Department of Business and Professional Regulation generally requires licensed contractors to carry liability insurance as a condition of getting or keeping a license.
The Florida Division of Workers' Compensation enforces the workers' comp rules hard. On-site inspections and stop-work orders do happen to contractors caught without coverage.
On top of the state rules, general contractors and commercial property owners usually require at least $1 million in liability coverage before they let a subcontractor on the job. That's often the practical floor, not the state licensing minimum.
Augustyniak Insurance Group is an independent insurance agency in Jacksonville. We don't work for one insurance company. We compare contractor coverage across 80+ companies, including Nationwide, Auto-Owners, Bankers, and specialty construction markets, to help match your trade to a program that fits.
If you run a trade contracting business in Florida, you are probably asking:
- How much does contractor insurance cost in Florida?
- Do I need workers' comp if I have just one employee?
- What happens if my subcontractor isn't insured?
- Does my insurance cover tools stolen from my truck?
- What limits do I need for a commercial contract?
This page covers all of it.
Want to skip ahead? Request your free contractor insurance quote or call (904) 268-3106.
We help trade contractors across Jacksonville, Orange Park, Fleming Island, Ponte Vedra, Nocatee, St. Augustine, the Beaches, Mandarin, San Marco, and throughout Florida.
Whether you are a one-truck plumber, a growing HVAC company, a residential electrician, an irrigation contractor, or a handyman service, we know the market and the companies that want your business.
How Much Does Contractor Insurance Cost in Jacksonville, FL?
Here's what we typically see by trade. These ranges assume a general liability policy with a $1 million / $2 million limit and include workers' comp estimates for a small crew. Your actual rate depends on payroll, claims history, vehicles, and the kind of work you do.
| Trade | Solo GL (Annual) | Workers' Comp Rate |
|---|---|---|
| Handyman | $500 – $1,500 | Varies by duties performed |
| Electrician (Code 5190) | $900 – $2,200 | ~$2.63 / $100 payroll |
| Plumber (Code 5183) | $900 – $2,200 | ~$6 – $9 / $100 payroll |
| HVAC Contractor | $1,000 – $2,500 | ~$3.40 / $100 payroll |
| Painter (Code 5474) | $700 – $1,800 | Higher than avg. per $100 payroll |
| Tile / Flooring | $800 – $2,000 | Moderate |
| Irrigation / Landscape | $600 – $1,700 | Moderate |
| Remodeling contractor | $1,200 – $3,000 | Based on trade mix |
Workers' comp rates shown are approximate base rates for the primary industry code before any adjustments. Rates can change each year and vary by insurance company. Ranges are estimates based on industry data and our commercial book. Call for exact pricing for your operation.
Good news on workers' comp: Florida rates have dropped for the tenth year in a row. The state approved an average 6.9% rate decrease that took effect January 1, 2026.
That's on top of more than 79% in cumulative reductions over the last two decades. It's one of the biggest structural shifts in Florida workers' comp pricing in recent memory. Your actual renewal still depends on your payroll, claims history, and the company.
Need a Quote for Your Trade?
Tell us about your business. We'll compare companies and come back with real numbers, not a sales pitch.
- A free review of your current policy
- Side-by-side pricing from companies that want your trade
- Same-day certificates of insurance when you bind
What Does Contractor Insurance Cover?
There's no single "contractor policy." Your program is built from several coverage parts. Each one protects against a different risk. Here's what a complete trade contractor insurance package typically includes.
| Coverage | What It Protects | Required? |
|---|---|---|
| General Liability | Injuries to people who aren't your employees, damage to other people's property, and problems with work you already finished | Yes, for a state license and most contracts |
| Workers' Compensation | Employee injuries. Pays medical bills, lost wages, and disability benefits | FL law: 1+ employee in construction |
| Commercial Auto | Your owned work trucks, vans, and trailers. Covers accidents, damage, roadside assistance | If you own business vehicles |
| Coverage for Employee Vehicles | Protects your business when employees drive their own cars for work errands | If employees run job or supply errands |
| Tools & Equipment Coverage | Tools in your truck, gear on the jobsite, materials in transit. Often called "inland marine" | Strongly recommended for all trades |
| Commercial Property | Your shop, office, warehouse, inventory, and equipment at a fixed location | If you own or lease a location |
| Installation Coverage | Materials and systems you're installing until the project is accepted | Recommended for HVAC, plumbing, electrical, irrigation |
| Commercial Umbrella | Extra liability limits above your general liability and commercial auto policies | Often required on bigger commercial contracts |
| Pollution Liability | Claims from spills, fumes, refrigerants, or mold that comes from your work | Important for HVAC, plumbing, septic |
| Surety & License Bonds | A financial guarantee some licenses, permits, and public work require | If your license or project calls for one |
Not every trade needs every coverage. Your agent builds a program around your actual operation and the contracts you work under.
What Does Florida Require for Trade Contractors?
Two sets of rules apply. The state licensing rules from DBPR, and the contract rules from the general contractor, property owner, or municipality you're working for. Most contractors never hit the state minimum. They hit the contract minimum, which is usually higher.
| Requirement | Florida DBPR Minimum | What Contracts Often Ask For |
|---|---|---|
| General liability, per claim | $100,000 | $1,000,000 |
| General liability, yearly total | (not specified) | $2,000,000 |
| Property damage (separate) | $25,000 | Included in the liability limits |
| Workers' compensation | Required at 1 employee (construction) | Almost always required |
| Commercial auto | State auto minimums only | $1,000,000 is typical |
| Umbrella / excess liability | Not required | $1M–$5M on larger projects |
Florida licensing minimums are set by DBPR rule 61G4-15.003. Contract limits vary by project owner and can be higher on high-rise, municipal, and large commercial work. Always read your contract before binding coverage.
Do Trade Contractors Need Workers' Comp in Florida?
Yes, in most cases. Florida's construction industry rules require workers' compensation at one employee or more, including corporate officers who haven't filed for an exemption. That's different from non-construction businesses, which need workers' comp starting at four employees.
Plumbing, HVAC, electrical, painting, drywall, flooring, framing, irrigation, and most other trade work are classified as construction under Florida Administrative Code rule 69L-6.021.
The Subcontractor Trap (and How to Avoid It)
This is one of the most expensive mistakes we see Florida contractors make. If you hire a subcontractor who doesn't have valid workers' comp or a valid state exemption on file, and their worker gets hurt on your job, Florida law can treat that worker as your employee for workers' comp purposes.
There's another hit at your annual policy review. If a sub wasn't covered, the insurance company can add what you paid that sub to your payroll and charge you extra premium on it.
As a rough example on a plumbing or HVAC rate, $30,000 paid to an uninsured sub could add roughly $1,800 to $2,700 in extra premium. That's illustrative. The exact number depends on your company, your rates, and how the work is classified.
Two free Florida databases help you avoid this:
- Proof of Coverage Database.
Confirms whether the sub has an active workers' comp policy in Florida and what work the policy covers. - Construction Policy Tracking Database.
Lets you track your subs and get automatic alerts if their policy cancels mid-year.
Our step-by-step walkthrough: How to verify a Florida subcontractor's workers' comp using the state database.
The Officer Exemption (Who Qualifies)
You can exempt yourself from your own workers' comp policy if you are an officer of a corporation or a managing member of an LLC who owns at least 10% of the business.
A maximum of three officers per construction corporation can be exempt. The application is online, costs $50 in construction, and must be renewed every two years.
Our full walkthrough of the rules, exemption filing, and audit prep: Florida Contractors Guide to Workers' Compensation and How to Prepare for Your Florida Workers' Comp Audit.
Opening a New Trade Business? Already Operating?
We help both. Tell us about your trade and we'll build a program around your crew, your trucks, your tools, and the contracts you work under.
- A clear explanation of what you need and what you don't
- Quotes from the right insurance companies for your trade and size
- Straight talk on limits, deductibles, and audits
What Trades Do We Insure in Jacksonville and Florida?
We insure a wide range of trade contractors across Jacksonville and throughout Florida. No two trades are alike, and the coverage that works for a plumber is not the coverage that works for an irrigation contractor. We build each program around the trade.
Plumber Insurance
Plumbing is one of the higher-claim-frequency trades because of water damage. A slow leak behind drywall found months after a repair is the kind of thing general liability is meant to respond to (when the policy covers it).
We match plumbers to companies with solid coverage for finished work, pollution coverage (often important for septic and sewer work), and tool coverage for the truck. Florida DBPR requires $100,000 general liability and $25,000 property damage for licensure. Most general contractors and commercial contracts ask for $1 million / $2 million.
HVAC Contractor Insurance
HVAC carries some unique Florida exposure. A failed cooling system in August can lead to mold and water damage claims on commercial buildings that run higher than expected.
Solar and high-efficiency installs may call for specific policy add-ons. Refrigerant handling can bring in pollution exposure. We write HVAC contractors with coverage built around Florida's climate, not a generic template. Florida minimum for licensure is $100,000 general liability and $25,000 property damage.
Electrician Insurance
Electrical work tends to have one of the more favorable workers' comp rates among trades (industry code 5190, roughly $2.63 per $100 of payroll at recent base rates) because claim frequency is lower, even though individual claims can be severe.
The liability side is demanding, though. An electrical issue tied to finished work can surface weeks or months later, and those claims can be expensive when they happen. Solar work is often treated as its own category by insurance companies and may call for a specific policy add-on.
Irrigation Contractor Insurance
Irrigation contractors deal with property damage exposures (cut cables, damaged sprinkler heads, flooded landscaping), underground work, and seasonal crews.
A good program usually includes proper coverage for finished work and coverage for your tools and equipment. We write irrigation contractors across North and Central Florida.
Handyman Insurance
Handyman businesses vary a lot in what they actually do. Some strictly do small repair and assembly work. Others do enough plumbing, electrical, or drywall that insurance companies classify them as full trade contractors.
We write both. The honest conversation about your scope of work drives which company and which industry code is correct. Being upfront at the application stage helps avoid surprises at your annual policy review.
Remodeling Contractor Insurance
Remodeling work usually combines multiple trades on one job, which makes getting the industry classification right more important than ever. We write small residential remodelers with a clear scope of work and no structural alterations. Mixed trade work takes careful underwriting.
Tile, Flooring, and Finish Contractors
Lower claim severity than the mechanical trades, but water damage from grout and sealant failures is a real risk on work you've already completed. Tool coverage matters here too. Wet saws, grinders, and specialty tools add up.
Painters
Florida workers' comp code 5474 (building painting contractors) tends to be one of the higher-rated codes in the trades. Overspray, ladder accidents, and property damage to client furnishings are the common claim types. See how painter workers' comp is calculated if you want the math.
Landscape and Hardscape Contractors
Landscaping covers a wide range, from mowing services to hardscape installation. We write both. Commercial auto for trucks and trailers, workers' comp for crews, and tool coverage for mowers, blowers, and specialty equipment are the core program.
Drywall, Framing, and Specialty Subs
We write specialty subcontractors when we can match the trade to a company that fits. If your trade isn't listed, call us. If we can write it, we will.
What Covers Your Work Truck, Tools, and Jobsite Equipment?
Your general liability policy doesn't cover your own property. It covers damage you do to other people's property. Your tools, your trucks, your equipment, and the materials you haul to the jobsite need their own coverage.
Do You Need Commercial Auto for a Work Truck?
In most cases, yes, if the vehicle is used for business. Personal auto policies typically exclude business use for trade contractors.
If you have an accident on the way to a jobsite with a ladder rack on your truck and employees in the cab, a personal auto company may deny the claim as business use. We've seen that denial happen.
Commercial auto covers accidents, damage to the vehicle, and extras like coverage when employees use their own cars for work errands, rental reimbursement, and 24/7 roadside. We write commercial auto across 80+ insurance companies. Full details on our commercial auto page.
Tools and Equipment Coverage
This coverage is often called "inland marine" in the insurance world. Despite the name, it has nothing to do with boats. It's the industry term for coverage that moves with your property. Tools in the truck, equipment on the jobsite, materials in transit.
A standard business owner's policy or commercial property policy typically covers property at a fixed location. Tools on a jobsite usually need this separate coverage.
It matters more than most contractors think. The average contractor truck carries $5,000 to $25,000 in tools.
A specialty contractor with diagnostic equipment, threading machines, refrigerant recovery units, or test instruments can carry $50,000 or more in gear. A single overnight break-in can wipe out a lot of it.
Installation Coverage
Installation coverage (sometimes called an "installation floater") covers materials and equipment that you're installing, from the time you take delivery until the project is accepted. A $40,000 HVAC package delivered Thursday and stolen Friday night is the kind of loss installation coverage is designed for. For HVAC, plumbing, electrical, and irrigation trades, it's worth a serious look.
How Do You Get a Contractor Insurance Quote?
Three steps. No pressure. No commitment until you are ready.
We Learn Your Trade
Tell us about your business: trade, revenue, payroll, vehicles, subcontractors, and the contracts you work under. If you have a current policy, send it over.
We Compare Companies
We shop your account across multiple contractor-friendly insurance companies, comparing coverage, limits, policy add-ons, and how the annual review works. Not just price.
You Choose
We present your best options with a clear recommendation. You pick the program that fits your business. We handle certificates, annual policy reviews, and ongoing service.
Ready to Compare Contractor Insurance?
One call. Multiple quotes. Real advice from a team that understands Florida trade contractors.
- We read your current policy so you don't have to
- We shop 80+ companies so you don't call around
- We handle certificates, annual reviews, and renewals going forward
Contractor Insurance Questions Florida Trade Businesses Ask
How much does contractor insurance cost in Florida?
A solo trade contractor typically pays $900 to $2,500 per year for general liability insurance alone. A small crew with workers' comp, commercial auto, and tool coverage typically runs $6,000 to $18,000 per year.
Your rate depends on your trade, your payroll, your vehicles, the limits your contracts require, and your claims history. Call for an exact quote for your operation.
What insurance does a plumber need in Florida?
A Florida plumber typically needs general liability insurance (many contracts ask for $1 million / $2 million limits, though Florida DBPR licensure only requires $100,000 liability and $25,000 property damage) and workers' compensation if they have any employees (construction threshold is one employee).
Plumbers also often need commercial auto for the work truck, tool coverage, and pollution liability for septic and sewer work. Coverage for work you already finished is especially important, because water damage claims can show up months after the job.
Do HVAC contractors need workers' comp in Florida?
In most cases, yes, starting at one employee. Florida classifies HVAC as construction, which means the one-employee threshold applies (rather than the four-employee threshold for non-construction businesses).
Corporate officers who own at least 10% of the business can file for a state exemption, but the exemption costs $50, lasts two years, and gives up your own workers' comp benefits if you're hurt on the job.
How much liability insurance should an electrician carry?
Florida DBPR licensure requires $100,000 in general liability and $25,000 property damage. In practice, most general contractors, property managers, and commercial contracts ask for $1 million per claim and $2 million yearly total.
Solar work is often treated as a separate higher-risk category by insurance companies and may call for a specific policy add-on. Larger commercial and municipal contracts can ask for $2 million / $4 million or $5 million limits plus an umbrella policy.
Does contractor insurance cover my tools?
Not automatically. General liability insurance covers damage you do to other people's property. Tools, equipment, and materials you own need their own coverage. It's often called "inland marine" or tools and equipment coverage and is sold as a separate policy or policy add-on.
It covers tools in the truck, equipment on the jobsite, and materials in transit. Deductibles and per-item limits vary by company, so review them before you bind.
Do I need commercial auto if I only have one work truck?
In most cases, yes. Personal auto policies typically exclude business use for trade contractors. If you have the truck lettered, haul tools and materials, or drive to jobsites, a personal auto company may deny a business-use claim.
Commercial auto covers accidents and damage to the vehicle in a way that's built for how contractors actually use their trucks, and often costs less than contractors expect when bundled with a general liability policy.
What happens if my subcontractor isn't insured?
In Florida construction, if an uninsured subcontractor's worker is hurt on your job, Florida law can treat that worker as your employee for workers' comp purposes. Your policy may have to respond, and at your annual policy review the insurance company can add what you paid that sub to your payroll and charge extra premium on it.
As a rough example on a plumbing or HVAC rate, $30,000 paid to an uninsured sub could add $1,800 to $2,700 in premium. That's illustrative only. The exact number depends on your company, your rates, and how the work is classified. The fix: verify every sub's coverage through the Florida Proof of Coverage Database before they step on your site.
What information do I need to get a contractor insurance quote?
Your trade, annual revenue, employee count and payroll, vehicle details (year, make, model, use), what you spend on subcontractors, your current policy documents (the declarations pages are fastest), your claims history, and any contract requirements you work under regularly.
If you have a sample certificate of insurance template from a general contractor you work with, send it. We'll match the limits and the required wording. Most quotes are returned the same day or next business day.
Susan Augustyniak, CIC
Vice President, Augustyniak Insurance Group
Certified Insurance Counselor with 25+ years in the industry. Susan has led the Augustyniak Insurance team in Jacksonville since 2005, helping thousands of Florida contractors find the right commercial coverage across multiple insurance companies. This page was reviewed and updated in April 2026.
Related Coverage
- Business Insurance Jacksonville FL. Full commercial insurance hub.
- Florida Workers' Compensation Insurance. Required at one employee in construction.
- General Liability Insurance. The foundation of every contractor program.
- Commercial Auto Insurance. For work trucks and vans.
- Commercial Property Insurance. Shop, office, and warehouse coverage.
- Surety & License Bonds. For licensing and public work.
- Restaurant Insurance. A related business insurance product.
From the Blog
- Florida Contractors Guide to Workers' Compensation. Exemptions, subs, and compliance rules.
- How to Verify a Subcontractor's Workers' Comp Using the State Database
- How to Prepare for Your Florida Workers' Comp Audit
- Painters: How Workers' Comp is Calculated in Florida (Code 5474)
- Florida Workers' Comp and Out-of-State Contractors
- Auto-Owners Agent in Jacksonville, FL
Important: The coverage descriptions, cost ranges, and class code rates on this page are for educational and illustrative purposes only. They are not a guarantee of coverage, insurability, or premium.
NCCI class code rates are base rates that can change each year and are subject to experience modification, credits, debits, and carrier deviations. Actual coverage terms, conditions, exclusions, and pricing are determined by the carrier and are subject to underwriting approval.
This page does not constitute insurance or legal advice. For an actual quote and coverage recommendation specific to your trade and operation, contact our office at (904) 268-3106 or request a quote online.
Sources
- Florida Department of Financial Services, Division of Workers' Compensation. "Coverage Requirements." Construction industry: workers' comp required at one or more employees. Non-construction: four or more employees. myfloridacfo.com
- Florida Administrative Code Rule 69L-6.021. Defines trades considered to be in the construction industry for workers' compensation purposes.
- Florida Administrative Code Rule 61G4-15.003. Public liability insurance requirements for DBPR-licensed contractors: $100,000 general liability and $25,000 property damage minimums.
- NCCI (National Council on Compensation Insurance). 2026 Florida workers' compensation rate filing. Approved average 6.9% rate decrease effective January 1, 2026 — the tenth consecutive annual reduction, totaling more than 79% in cumulative reductions over two decades. ncci.com
- NCCI Class Code 5190 (Electrical Wiring). Approximate Florida base rate $2.63 per $100 of payroll before modification. ncci.com
- NCCI Class Code 5183 (Plumbing — not on new construction). Approximate Florida base rate range $6.00–$9.00 per $100 of payroll before modification.
- NCCI Class Code 5474 (Painting — buildings). One of the higher-rated NCCI class codes in the Florida trades.
- Florida Department of Business and Professional Regulation (DBPR). Contractor licensing and insurance requirements. Licenses are tied to active insurance. Lapsed coverage triggers license suspension. myfloridalicense.com
- Florida Statute § 440.10. Contractor liability for uninsured subcontractors. Treats workers of uninsured subcontractors as employees of the contractor for workers' compensation purposes.
- Associated General Contractors of America. Construction employment in Florida July 2025: 657,000, a 14% increase over February 2020. agc.org
- Florida Division of Workers' Compensation. Proof of Coverage Database and Construction Policy Tracking Database — free public tools for verifying subcontractor coverage.
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