Business insurance for a Florida LLC: what is required and what you need

Forming an LLC in Florida protects your personal assets from the company's debts, but it does not protect the company itself: if a customer gets hurt at your premises, a hurricane destroys your inventory or an employee is injured on the job, the LLC pays. That is what insurance is for. In this guide we explain, with official sources, which insurance Florida law requires, which coverage clients and landlords will ask for, and how to buy it without mistakes, including if you live outside the U.S.

Why an LLC is not enough

Limited liability separates your assets from the company's: if the LLC cannot pay its debts, creditors generally cannot go after your home or savings. But the LLC itself is liable for everything it owns. A lawsuit over an accident, a warehouse fire or a mistake on a client project can empty its accounts. Insurance pays in those cases, and it also covers defense costs, which in the U.S. can be very high even if you win in the end.

If you have not formed the company yet, start with our guide to opening a Florida LLC as a non-resident.

What Florida law requires

Workers' compensation in detail

• Outside construction: required from 4 employees. Corporate officers and LLC members owning at least 10% can elect an exemption with form DWC-250, with no limit on the number of people and no fee.
• In construction: required from 1 employee, full- or part-time. Only up to 3 members or officers per company can be exempt, each owning at least 10% and listed as such on Sunbiz; the exemption costs $50 and lasts two years.
• If you subcontract: contractors must verify that their subcontractors have coverage. If they don't, the subcontractor's workers are treated as your employees for workers' compensation purposes.
• Penalties: lacking required coverage, or understating payroll, can lead to stop-work orders and civil and criminal penalties.

For a member's exemption to be valid, the LLC must be active on Sunbiz and the member must appear in its records. If you miss the annual report, the company can be dissolved: we explain it in our guide to the Sunbiz annual report.

What clients, landlords and licenses require

Even when the law does not require it, much insurance is mandatory in practice because others ask for it:

• Leasing commercial space: almost all commercial leases require general liability with the landlord named as an additional insured.
• Working for companies: many clients ask for a certificate of insurance before signing, especially for general or professional liability.
• State-licensed contractors: you must show liability coverage to obtain and keep the license. According to the rules as summarized by insurers, the minimum is $300,000 for bodily injury and $50,000 for property damage for general and building contractors, and $100,000 and $25,000 for others. Confirm the current figures with the DBPR.
• Mortgage or loan: if the LLC finances a property, the lender will require property insurance and, in a high-risk zone, flood insurance.

The most common policies for an LLC

Note: according to the Insurance Information Institute, a BOP does not include professional liability, auto, workers' compensation or health insurance. Each of those risks needs its own policy.

Hurricanes and flooding in Miami

In Miami, business property insurance has two special features:

• Wind: hurricane damage is usually covered by property insurance, but a coastal building costs more to insure than an inland one, according to the Florida Department of Financial Services. Check the hurricane deductible, which is usually different from the standard one.
• Water: flooding is normally separate. In high-risk zones, most policies are written by the federal NFIP, which covers up to $500,000 for the building and up to $500,000 for contents in separate policies, generally at actual cash value, after depreciation. Private insurers also offer flood coverage.
• Lost income: NFIP flood insurance does not cover income lost while the business is closed. That is what business interruption insurance is for: it covers lost income for a period, often up to a year, when a covered loss forces you to close.

Before leasing space, look up its zone on the FEMA flood map. In our guide to Miami neighborhoods we compare flood risk across fifteen neighborhoods and cities, from 6% of land in a high-risk zone in Little Havana to 100% in Key Biscayne. If you will also live in Miami, read our guide to home and flood insurance.

If you live outside the U.S.

Owning a Florida LLC while living in another country is common, and it can be insured, but keep three things in mind:

• Describe your operations accurately: where you work, for whom and from where. If you provide services remotely from your country, the policy has to cover that activity; if you describe it incorrectly, the insurer could deny a claim.
• Have the company's details ready: the EIN, the Sunbiz registration and a U.S. bank account to pay premiums. We help with the account in our guide to opening an account without an SSN.
• If you have no physical operations or employees in Florida, workers' compensation and vehicle insurance usually do not apply, but your clients may still ask for general or professional liability.

How to buy without mistakes

1. List your risks: do you receive customers? Do you have employees, vehicles or inventory? Do you give professional advice? Do you store customer data?
2. Check what your contracts require: your lease, clients and professional license often set minimum coverages and amounts.
3. Verify the agent's license with the official Florida search and the insurer's with the company registry. Selling insurance without a license is illegal in Florida.
4. Get at least three quotes with the same coverage, so you can truly compare.
5. Read exclusions and deductibles, especially the hurricane deductible.
6. Report payroll and employee duties accurately: if you hide or understate them to pay less, Florida treats you as not having the required coverage.

If you have questions about an agent or insurer, the Florida Department of Financial Services helpline is 1-877-693-5236 (1-877-MY-FL-CFO).

FAQ

Method note

This guide summarizes requirements published by the Florida Department of Financial Services (workers' compensation and consumer services), the Florida Department of Highway Safety and Motor Vehicles, the Florida Department of Revenue, the IRS, FEMA (NFIP) and the Insurance Information Institute, consulted in October 2026. The minimum figures for contractors come from the rules as summarized by industry insurers, and we recommend confirming them with the DBPR. inMiami.ai is not an insurance agent and this guide is not insurance advice: to choose coverage, talk to an agent licensed in Florida.