Florida Contractor License Insurance Requirements: The Minimums, the Affidavit, and the Audit

Section 489.115(5)(a) requires an affidavit of public liability and property damage insurance "in amounts determined by rule of the board." Rule 61G4-15.003 sets those amounts in two tiers:

• General contractor: $300,000 public liability, $50,000 property damage.
• Building contractor: $300,000 public liability, $50,000 property damage.
• Residential, sheet metal, air conditioning, roofing, mechanical, pool, plumbing, underground utility and excavation, solar, and pollutant storage system contractors: $100,000 public liability, $25,000 property damage.
• Specialty contractors not otherwise specified in the rule: $100,000 public liability, $25,000 property damage.

You'll see the higher figures described as the Division I requirement. The rule doesn't work by division. It names general and building contractors for the $300,000 / $50,000 tier and lists residential contractors with the trades at $100,000 / $25,000, even though residential is a Division I license. The application says the same thing in fewer words: general and building contractors at the higher amounts, "all other categories" at the lower.

The current version of the rule took effect November 15, 2007, and the Florida Administrative Register's page for it shows no pending amendment. Rules do change, so confirm the amounts on the application form you're filing. They're printed in the insurance section.

On form CILB 5-A, the individual application for a certified general contractor, insurance is Section VII. It prints the minimums and asks two yes-or-no questions:

• Have you obtained public liability and property damage insurance in the amounts determined by board rule?
• Have you obtained workers' compensation insurance or filed for an exemption with the Division of Workers' Compensation, and if not, do you attest that you will obtain an exemption within 30 days after your license is issued?
• The section is for active applicants only. The form tells you to skip it if you're applying for an inactive license.
• No certificate goes in with the application. Under 61G4-15.003(4), a certificate of insurance is submitted only when the board requests one.

The statute tells the board to verify the affidavits by random sample, and the rule sets out how. The board runs periodic random audits and sends the request by certified mail. You have 30 days from the mailing to respond. The rule accepts three forms of proof: an original certificate of insurance, a certified copy of the certificate on file with the building department for the period being audited, or a copy of the policy in force for that period showing the correct amounts and continuous coverage since your last renewal.

The rule also lists what a certificate has to show. It's prepared by an insurance agency, and it includes:

• The date of issue, the agent's name, and the agent's signature.
• The exact name of the insured as it appears on the license, including any fictitious name or d/b/a.
• The insurance company, the policy number, and the policy's effective and expiration dates.
• The required public liability and property damage amounts for your category.
• The State of Florida, Construction Industry Licensing Board as certificate holder, with a provision for 30 days' written notice to the certificate holder if the policy is cancelled early.
• Your license number.

The affidavit comes up more than once. Section 489.115(5)(a) makes it a prerequisite to renewal as well as to initial issuance, and the rule adds a change in status of an active certificate or registration. Our license renewal guide covers the rest of what a renewal takes.

Between those dates, the rule requires the coverage to stay continuously in force, and it treats a lapse as a violation of the rule. It treats failing to answer an audit request with proof that meets the board's requirements the same way. The policy audit option asks for continuous coverage since your last renewal, so a gap between policies is something an audit can find.

The rule also says the insurance must at all times be carried in the licensee's name. The certificate has to match the name on the license exactly, which is the detail to get right when you buy the policy. If you're qualifying a business, ask your agent and the DBPR how the name should read before the policy is issued.

The same affidavit covers workers' compensation "as required by chapter 440," and it follows different rules from the liability coverage. Section 489.115(5)(d) lets a first-time applicant attest that they will obtain an exemption within 30 days after the license is issued, which is why the application's second question is worded the way it is. The liability question has no such grace period: it asks whether you have obtained the coverage.

An exemption is narrow in construction. It's available to corporate officers and LLC members who own at least 10% of the business, it covers only the person named on it, and one employee is enough to require a policy. Our workers' comp exemption guide goes through who qualifies and what the exemption leaves uncovered.

These amounts are what the board requires to issue and renew a license. They say nothing about what a particular job will require. Owners, lenders, and general contractors hiring subs set their own insurance terms by contract, and those can be higher than the license minimums. If you're studying for Contract Administration, you've seen where this lives: the insurance and bonds article of the AIA A201 general conditions.

The rule is also written in older terms, with public liability and property damage as two separate amounts. The application itself heads the section "General Liability insurance." Ask your agent to confirm that the policy you're buying meets both figures for your category and that the certificate will show it in the form the rule describes.

Insurance is one of the last pieces of the license file. It's worth pricing early so the cost isn't a surprise at the end. The exam registration guide walks through the whole application, and the credit requirements guide covers the other half of the financial review.

• During exam prep, get a quote for general liability at or above the minimums for your category.
• Decide how you'll handle workers' comp: a policy, or an exemption if you qualify for one.
• Have the policy issued in the exact name that will appear on the license, and have coverage in place before you answer yes on the application.
• Keep your certificates and policy declarations for every period. An audit can ask for coverage going back to your last renewal.
• Insurance questions also show up on the Business & Finance exam, under Managing Administrative Duties, which carries 26% of that exam.

None of this applies until you've passed your exams, and that's where most of the time and retake money goes. The general contractor license guide lays out the full route from experience to application.

LicenseReady's courses drill each part with original questions weighted to the official outlines, spaced repetition, and timed simulations. Start with the free readiness quiz to see where you stand.