Best Business Insurance Florida 2021

Last modified: March 6, 2021

With more than 9 million workers, Florida makes up the fourth largest labor force in all states across the USA. There are approximately 3 million businesses in the Sunshine State, and, although business insurance Florida is not mandatory (except for workers’ compensation for employers in the construction industry), it is recommended especially if your business owns property or other assets. Insurance will help you protect your business against financial losses that can affect your income and property. 

In this article, we will talk about the common business policies Florida has to offer, as well as the type of businesses that require insurance, followed by some of the common causes of business insurance claims in Florida. We will also address the cost of and the laws and requirements for business insurance FL. In the last part of the article, we will answer some FAQs and provide reviews about the best business insurance companies for a Florida man

Business Insurance in Florida Stats and Facts

What does Florida business insurance typically cover?

A Business Owner Policy(BOP) in Florida will usually cover:

  • Business Income Insurance: If your business operations are halted due to any unforeseeable events, a certain portion of your normal business income is covered. 
  • Commercial property insurance: This insurance type protects any property that your businesses own, rent, or lease. It can also include coverage for loss of valuable records or accounts receivables. 
  • General liability insurance: If your company is sued for causing damage to a person, organization, or property, general liability insurance will cover any costs pertaining to that lawsuit. 

In addition, insurance policies related to workers’ compensation, data breach, commercial umbrella, and management and professional liabilities are also covered by business insurance companies in Florida. 

Who needs general liability insurance?

Although, as discussed, general liability insurance is not one of Florida state business requirements, small and medium-sized businesses typically get this insurance. General liability insurance might be required to:

Apply for a professional license: Professionals like dentists, real estate agents, or accountants require a license before they can practice in the United States. Often, having general liability insurance is one of the prerequisites for getting a professional license. 

Sign contracts with major companies: Companies that hire landscapers, engineers, or general contractors might be required to get general liability insurance. 

Sign an office lease: If you are a professional looking to rent a workspace or an office, you might need to get general liability insurance as part of the lease requirements. 

What can cause a general liability claim?

Below are some of the most common kinds of general liability claims:

  • Property damage.
  • A slip and fall event.
  • Product liability.
  • Customer injury.
  • Advertising lawsuit.

How Much Does Business Insurance Cost in Florida? 

The cost for insurance can vary from one company to the next. Generally, the riskier the business, the higher your Florida business liability insurance rates

However, below are some common factors that impact the rates of business liability insurance in Florida:

  • The industry you are in: Some vocations are riskier than others. For instance, if your company has numerous potential hazards or handles dangerous equipment, the insurance cost is likely to be on the higher side of the state average. It is for this reason that the construction industry is infamous for elevated liability. 
  • Property and location: Although it is natural for insurance rates to vary from state to state, there is also a great deal of intra-state variation. For example, if your commercial property is located close to a flood zone, you will be likely required to get additional flood insurance for your business. 
  • Business claims history: An insurer will closely assess the number of insurance claims you have made, and the number of claims made against your business. The more the claims made against you, the greater the potential risk to an insurer, and the higher you can expect your insurance cost to be.
  • Payroll size: The greater your number of people who work for you, the greater the number of people who will have to be covered and, naturally, the greater your insurance cost. This is why rates of Florida general liability insurance for small businesses are often less than for their larger counterparts. 

What is the average cost of business insurance in Florida?

A typical, average-sized business in major Florida states like Miami, Orlando, Jacksonville, and Tampa, can expect to pay an annual charge between $300 and $5,000 for a general liability insurance policy. 

Laws and Insurance Requirements for Businesses in Florida

As previously discussed, it is not mandatory to get business liability insurance Florida, except for some exceptions.

Firstly, businesses in the construction industry are required to get workers compensation. Secondly, if your business owns company-owned vehicles, you have to get commercial auto insurance, regardless of the industry in which you are operating, as per the Florida business insurance requirements. 

Furthermore, in every U.S. state, all employers with at least 15 employees must guarantee freedom from employment discrimination based on race, color, national origin, sex, religion, and disability. Employers with at least 20 employees must guarantee freedom from age discrimination, and employers with at least four employees must guarantee freedom from discrimination based on citizenship status.

Although business insurance is not mandatory, many Florida business owners choose to opt for it anyway, because it covers them against the unexpected, helps them sign larger contracts, protects against data breach, injury claims, and staff actions. 

Best Insurance Companies in Florida:

 

Company Ratings (A.M Best, J.D Power, Standard and Poor’s, Moody’s, Fitch). Best For Key Features
The Hartford
  • A.M Best: A+
  • J.D Power: 895
  • Standard and Poor’s: A+
  • Moody’s: A1
  • Fitch: A+
  • Auto-insurance for drivers belonging to AARP.
  • Safety program for risk lowering.
  • Insightful claims team for cost control.
  • Complete transparency on collateral.
State Farm
  • A.M Best: A++
  • J.D Power: 838.
  • Standard and Poor’s: AA.
  • Moody’s: –
  • Fitch: –
  • Car-insurance and home coverage. 
  • #1 auto insurer in the US.
  • #1 home-owners insurer in the US.
  • Number 36th on Fortune 500 (2019).
AIG
  • A.M Best: A
  • J.D Power: 742.
  • Standard and Poor’s: (Senior Debt: BBB+; Non-life financial strength: A+; Life financial strength: A+).
  • Moody’s: Baa1.
  • Fitch: A+
  • Wide range of coverages. 
  • Key person cover.
  • Business loan protection.
  • Shareholder protection. 
Nationwide
  • A.M Best: A+
  • J.D Power: 803
  • Standard and Poor’s: A
  • Moody’s: A1
  • Fitch: A
  • Best auto insurance rates. 
  • Better Business Bureau rating: A+
  • Non-owned and hired auto liability.
  • Employment practices coverage.
  • Directors’ and officers’ liability.
Florida Farm Bureau
  • A.M Best: A
  • J.D Power: 826
  • Standard and Poor’s:
  • Moody’s: –
  • Fitch: – 
  • Auto-insurance
  • Valuable resources for saving money.
  • Discounts on healthcare, vehicle, and travel insurance.
Hiscox
  • A.M Best: A-
  • J.D Power:
  • Standard and Poor’s: A
  • Moody’s: –
  • Fitch: A+
  • Specialized coverage for small business owners. 
  • US’s leading small business insurer.


Detailed Reviews

The Hartford

Hartford has an average or better rating for car insurance. The most popular features are the ‘new car replacement’ and ‘lifetime car repair assurance’. However, with an NAIC rating of 1.72, Hartford Insurance has received a greater number of complaints than is the average in the car insurance industry. 

State Farm

State Farm is one of the best and the largest auto insurer in the United States. Compared to its size, the company had lower than median complaints to the state insurer during 2019. Furthermore, State Farm offers rideshare insurance in almost all states. Despite primarily being an auto-insurer, the company provides a range of other insurance and financial products. 

AIG

AIG is renowned for providing effective packages for all types and sizes of businesses, including packages for sickness or injuries. They also provide insurance for product manufacturers and service providers. With over a century of experience in this field, AIG is certainly an option worth considering if you are seeking business aid for a prompt defense (in cases of allegations or lawsuits) or response. 

Nationwide

One of the top liability insurance providers of this year, Nationwide is one of your best choices if you are a small business owner looking for general liability insurance. The company specializes in offering customizable services to its clients, along with instant access to live representatives in case of a claim. 

Florida Farm Bureau

Florida Farm Bureau (FLB) is an adequate insurance provider. They provide decent financial stability, customer service, and essential insurance coverages. However, there are very few options for optional coverage, such as a glass replacement coverage for your vehicle. So, if you want anything beyond the basic coverage, you will have to look elsewhere. 

Hiscox

Hiscox is a specialist insurance company, providing insurance services for small businesses that have fewer than ten employees. It offers customizable plans based on each individual business’ requirements and needs and includes coverage for general liability, errors and omissions, professional liability, and workers’ and business owners’ compensation. Its financial strength and stability is another plus point.

Pros & Cons

The Pros

The Cons

Final Verdict

FAQs

What type of insurance is based in a state other than Florida, but does business in Florida?

If an insurance company is doing business in Florida but has its office situated in a different U.S state, the company will be known as a Foreign Insurer.

What type of insurance is required by Florida?

FL business insurance is not mandatory for businesses apart from those operating in the construction industry, which is required to have workers’ compensation insurance. Moreover, any business owning company-owned vehicles is required to get commercial auto-insurance for those vehicles.

How do I get business insurance in Florida?

Once you have assessed your business risks, you will have to find a reputable licensed agent. You can even seek professional assistance from commercial insurance agents to help you search for policies aligned with your business needs.

What business insurance do I need in Florida?

If you have a business in the construction industry, you are required by the state to get workers’ compensation insurance. Furthermore, the state also requires you to get commercial auto insurance for any business-owned vehicles, regardless of your business industry. Other than that, depending on your business needs, you can choose to get business income, commercial property, general liability, data breach, commercial umbrella, and management and professional liabilities insurance.

How much does business insurance cost in Florida?

Business Insurance in Florida typically costs between $300 and $5,000 annually.

Does every small business have to pay unemployment insurance in Florida?

Every small business with employees working in Florida will have to pay the Florida Unemployment Insurance tax.