Florida Bonding, Insurance & Business Requirements
Beyond passing the exam, a Florida contractor must show financial responsibility and carry required insurance. This chapter reviews the financial-responsibility standard, insurance obligations, and business setup.
Financial responsibility and credit
Florida requires license applicants to demonstrate financial responsibility, generally reviewed through a personal credit report. Applicants whose credit score falls below the CILB threshold can still qualify by obtaining a financial responsibility bond or providing other assurances of stability. This requirement protects consumers who depend on the contractor's solvency to finish their projects.
Insurance and workers' compensation
Certified and registered contractors must carry general liability insurance in amounts set by the CILB, and, if they have employees, workers' compensation coverage. Florida's construction industry has stricter workers' compensation rules than other industries: coverage is generally required, though a limited number of qualifying corporate officers who meet minimum ownership rules may elect an exemption for themselves. Property damage and liability minimums vary by contractor category.
Qualifying a business and continuing education
A licensed individual may qualify a construction business, taking on legal responsibility for the company's contracting. The qualifier must ensure the business maintains its insurance, financial responsibility, and compliance with Chapter 489. Licensed contractors must also complete continuing education each renewal cycle to keep the license active. These ongoing obligations continue for the life of the license.