Commercial Property Insurance Requirements in Florida

Florida is a state of ample opportunity for businesses. With beaches, tourist attractions and a healthy business climate, many companies flock to Florida to open their doors for business and reap the profits. But Florida also presents dangers. The weather is nearly unpredictable with volatile winds and rain. In 2018 alone there were over 1 million insurance claims with a loss of $11 billion due to hurricanes. If you plan on opening a business in Florida, it’s crucial to have

Commercial property insurance provides compensation if the property owned by the business is damaged by fire, wind, hail, lightning, theft, vandalism and other covered incidents. Floods and earthquakes are not generally included in a commercial property policy.

You may purchase a commercial property insurance policy on its own, but it’s often more cost effective to bundle it with other necessary coverages for your business. Two bundle options are:

• Business Owners Policy (BOP): A BOP is generally used by small businesses to bundle property insurance and liability insurance into one package. It includes property insurance, contents coverage, general liability and business interruption insurance.
• Commercial Package Policy (CPP): Larger businesses tend to invest in a CPP. A CPP is more flexible and covers the same property and liability insurances as BOP. You can also add more coverages such as E&O insurance, personal liability, employment practices liability and more.

An important addition to a commercial package policy to consider is inland marine insurance. This coverage provides compensation if equipment or possessions are damaged during transport. Inland marine insurance is crucial if your company transports items, equipment or produce. For industries that are likely to face lawsuits, also consider adding an umbrella insurance policy for when your business’ liability insurance reaches its maximum.

For vehicles owned by the company, commercial auto insurance is needed. Florida requires companies to carry commercial auto insurance if they use vehicles for wok purposes. Minimum requirements for commercial auto insurance in Florida are:

• $10,000 in personal injury protection
• $10,000 in property damage

Limits vary depending on the size of vehicle and type of cargo. For example, certain vehicles between 26,000 and 34,999 pounds must carry $50,000 or more in liability insurance.

Do I Need a CPP or a BOP?

Deciding between a CPP and a BOP depends on your business. Small businesses generally do well with a BOP, but it’s inflexible and has limited coverage. A CPP is much more flexible, but thus more costly. Consider your business’ size and unique needs before speaking with an insurance agent.

How Much Does Commercial Property Insurance Cost in Florida?

Different factors affect the cost of commercial insurance. Besides location, factors include:

• Age of the company
• Claims history
• Industry
• Coverage limits and types
• Vehicle types and weight (for commercial auto insurance)

On average, a BOP may cost $1200 a year. The cost of a CPP is harder to decipher due to its flexible nature. Business owners pay an average of $742 a year for commercial property insurance.

Type of Coverage Average	Cost per Year
Commercial Auto Insurance	$750
Personal Liability Insurance	$225
EPLI Insurance	$2900
Inland Marine Insurance	$2500

Does Florida Require Business Insurance?

Any company with four or more employees must carry workers’ compensation. Besides this, insurance requirements vary depending on the industry. Many lenders require businesses to carry insurance before providing a loan, even if the state of Florida doesn’t require insurance.

With an unpredictable climate and a location so close to the coast, insurance is essential to protecting your company’s assets. Make sure to review your policy carefully to make sure your company is covered.

Protect your livelihood today and every day. Call us at (813) 689-8878 for more information on business insurance.