General contractors (GCs) have unique coverage needs. For example, it is important that they carry the proper liability insurance. Liability insurance protects GCs against claims of property damage, personal injury, or negligence. In some instances a contractor may bid for work without liability insurance, however, it cannot perform the work without it.
It is always important to ensure that your insurance agent provides you with a General Contractor Insurance Certificate. Usually, this certificate is required to be posted on the job site. In other cases, the contractor may be required to show the certificate before it can start work on the job.
In Florida, contractors are usually required to carry $2 million worth of liability insurance. However, the amount of insurance you need varies based on the work you do, total payroll expenses, and other factors.