INSURANCE REQUIREMENTS
Liability insurance is required and essential for contractors seeking contract awards from Florida governments to protect both the contractor and the government entity from financial risks associated with accidents, property damage, or legal claims arising during project execution. It ensures that contractors have the financial capacity to cover potential liabilities, reducing the risk of costly disputes and safeguarding public funds. Additionally, it demonstrates the contractor’s reliability and compliance with legal and contractual obligations, fostering trust and accountability in government projects. Insurance coverage should be provided by a company (or companies) authorized to transact business in the state with an A.M. Best rating that is acceptable to your organization (minimum of A-VII is ideal).
Below is a list of standard liability insurance requirements typically used by Florida governments, which may vary or be waived depending on the organization. Consult with your Risk Manager and other essential personnel within your organization to assess and determine the appropriate insurance requirements and limits for your needs.
Standard Insurance Requirements Matrix
| Service Type | General Liability | Auto Liability | Workers' Comp | Professional Liability | Cyber Liability | Pollution Liability | Builder's Risk | Aviation Liability | Property Ins. | Special Event Ins. | Surety Bonds |
|---|---|---|---|---|---|---|---|---|---|---|---|
| General Services | $1M / $2M | $1M | $500K | -- | -- | -- | -- | -- | -- | -- | -- |
| Construction Services | $1M / $2M | $1M | $500K | $1M | -- | $1M / $2M | X | -- | -- | -- | X |
| Professional Services | $1M / $2M | $1M | $500K | $1M | -- | -- | -- | -- | -- | -- | -- |
| Waste Mngt / Environmental | $1M / $2M | $1M | $500K | -- | -- | $1M / $2M | -- | -- | -- | -- | -- |
| Technology / IT Services | $1M / $2M | $1M | $500K | $1M | $1M | -- | -- | -- | -- | -- | -- |
| Real Estate Services | $1M / $2M | $1M | $500K | -- | -- | -- | -- | -- | X | -- | -- |
| Entertainment / Perf Svcs | $1M / $2M | $1M | $500K | -- | -- | -- | -- | -- | -- | X | -- |
| Consultant / Personal Svcs | $1M / $2M | $1M | $500K | -- | -- | -- | -- | -- | -- | -- | -- |
| Transportation Services | $1M / $2M | $1M | $500K | -- | -- | -- | -- | -- | -- | -- | -- |
| Aviation Services | $1M / $2M | $1M | $500K | -- | -- | -- | -- | $1M / $2M | -- | -- | -- |
Legend & Notes:
- $1M / $2M: Refers to $1 Million per occurrence / $2 Million aggregate limit.
- $1M, $500K: Refers to limit per occurrence or per policy as applicable.
- X: Indicates coverage is typically required; specific limits determined by project scope.
- --: Indicates coverage is not typically required as standard, but may be added based on specific project risk.
General Requirements & Endorsements:
- Additional Insured: The Certificate of Insurance (COI) must name the Government Organization as an Additional Insured on General Liability and Auto Liability policies (and others as applicable).
- Certificate Holder: The Government Organization must be listed as the Certificate Holder.
- Waiver of Subrogation: Contractor may be required to provide a Waiver of Subrogation endorsement in favor of the Government Organization for applicable policies (esp. Workers' Compensation).
- Cancellation Notice: Insurance cancellations and renewals must be provided to the Government Organization at least 30 days in advance.
- Project Identification: Listing project names and/or descriptions on COIs is preferred for clear identification and association.
- Carrier Rating: Insurance carriers should generally have an A.M. Best rating of A-, VII or better and be licensed to do business in Florida (Verify your organization's rating standards).
- Workers' Compensation: Must meet Florida statutory limits. Proof of exemption may be acceptable if permitted by law and approved by your organization's Risk Manager.
